Personally, I have never liked stretching too much for a house. We have always stuck to ~2x of our annual income which would still give you a generous budget.
We are not too far behind you income-wise and a $14k house payment would make me nervous. Once you potentially add a child to that equation, your expenses will increase considerably (daycare/nanny, babysitter, activities, etc.). It wouldn’t be fun to feel tight making over $700k per year. When I’ve done the math in NYC for some friends, it almost always has made sense to keep renting. The HOA/Taxes/Interest/Closing and Selling Costs plus the opportunity cost on the money you put down will more than likely eat up any appreciation you get. Of course, owning a home is not purely a financial decision. If I were in your shoes and intent on buying, I’d be pretty firm in the 1.5-1.7M range. Good luck to you whatever you decide!
We are not too far behind you income-wise and a $14k house payment would make me nervous. Once you potentially add a child to that equation, your expenses will increase considerably (daycare/nanny, babysitter, activities, etc.). It wouldn’t be fun to feel tight making over $700k per year. When I’ve done the math in NYC for some friends, it almost always has made sense to keep renting. The HOA/Taxes/Interest/Closing and Selling Costs plus the opportunity cost on the money you put down will more than likely eat up any appreciation you get. Of course, owning a home is not purely a financial decision. If I were in your shoes and intent on buying, I’d be pretty firm in the 1.5-1.7M range. Good luck to you whatever you decide!
Statistics: Posted by ajg189 — Mon Jun 10, 2024 5:00 am — Replies 72 — Views 5540
