As someone who has spent a considerable amount of time on mental and emotional wellbeing, I'd caution you against expectations that an upgrade in housing conditions will correlate to the relief of pain. I don't know your situation of course, but going to that level of income to rent ratio is certain to inflictore stress and harm than any gains in living.
Mine is just a little over 20% but I rent. If you’re buying, that’s different. But I choose to pay much less in rent to save for other things—my apartment has all I need at the moment.
Phewww. This move would be 50% of my income. I got promoted and have a raise coming but waiting on the final number. Wondering if I should ask for it earlier.
There are lots of online calculators to help you. Don’t forget the tax break on mortgage interests and also property taxes. My mortgage is about 25%-30% take home pay and property taxes are held in escrow so I don’t pay out of pocket. Going to 40-50% would be hard but doable short term but would impact long term planning (college, retirement). Where you live matters too, will you make money on it or will value drop? In some markets it’s hard to believe the house values can keep going. At some point people have to look at 2000 sq feet and say “that’s not worth 3 million,” right?!?!?
As someone who has spent a considerable amount of time on mental and emotional wellbeing, I'd caution you against expectations that an upgrade in housing conditions will correlate to the relief of pain. I don't know your situation of course, but going to that level of income to rent ratio is certain to inflictore stress and harm than any gains in living.
Most finance experts state that rent/mortgage should never exceed about 30%. Beware
Approx. 33%. If that’s what will make you happy do it but ask for a raise too.
50% is just too much. I did it for a while in SF, but I saved like nothing. Seeing every other paycheck go directly to rent was depressing.
Mine is just a little over 20% but I rent. If you’re buying, that’s different. But I choose to pay much less in rent to save for other things—my apartment has all I need at the moment.
Phewww. This move would be 50% of my income. I got promoted and have a raise coming but waiting on the final number. Wondering if I should ask for it earlier.
That was supposed to say *phewwww ^^ 😌
14% though 33% of take home sounds reasonable to me
There are lots of online calculators to help you. Don’t forget the tax break on mortgage interests and also property taxes. My mortgage is about 25%-30% take home pay and property taxes are held in escrow so I don’t pay out of pocket. Going to 40-50% would be hard but doable short term but would impact long term planning (college, retirement). Where you live matters too, will you make money on it or will value drop? In some markets it’s hard to believe the house values can keep going. At some point people have to look at 2000 sq feet and say “that’s not worth 3 million,” right?!?!?
Thanks everybody 🙏
Try to overextend yourself and buy something. I’ve made more money in SF real estate than the ad game.
Is that 33% before or after taxes??