How much house can you afford to buy? When is it to much?

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gator1
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How much house can you afford to buy? When is it to much?

Post by gator1 »

My spouse and I are looking to purchase our first home. We are in our mid 20's, debt free, large emergency fund, large downpayment, pretty stable jobs(knock on wood), and have been saving and penny pinching for years to get to this point.

Our combined yearly gross is about $70k. Our monthly take home after taxes, her pension, his 401k, both Roths, and healthcare is around $4k/mo.

We have been approved for almost $300k and feel that is waaaaaaaaaaaaay more then we want go spend. We have also taken the online calculators and it's near the same #. We have also seen the 33% rule where all housing expense plus debt should be no more then 33% of monthly gross. Since we have no debt that # is around $1,800. Still steep in our opinion.

The home we are interested in is a beautiful 4 bed 4 bath custom built 2 story home with a full basement and 2 garages. It has everything we want and need. It appraises for $250,000 so there is already quite a bit of equity there. The reason the house is that cheap for that much house is the area its in. It's in east TN and while the area is beautiful the city itself is a dying city and a lot of the real estate prices reflect that. But our jobs are here and we have some family here. The mortgage would be about $1,000/mo including all taxes and fees.

So what do you guys think. $1,000/mo mortgage on $4/mo take home. We also don't eat out and spend wisely.

Would you do a mortgage that is 25% of your take home pay?
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ginmqi
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Re: How much house can you afford to buy? When is it to much

Post by ginmqi »

Also remember to take into account other cost of homeownership: tax, insurance, maintenance, utility, and HOA fees and factor that into the monthly cost.

You're already a great step ahead with knowing what your take home, after-expense money is each month (which includes retirement savings of course).

My own humble opinion (no homeownership yet) is I want my home to be paid off in at most 10 years. So I will likely take a 15-year fixed rate mortgage, get the monthly mortgage payment and add the extra yearly cost (tax, insurance, maintenance, utilities, home repair fund etc.) and factor that into the monthly cost...and if that is less than 30% of my after-expense monthly income and I can pay the entire home off in 10 years or less then to me that is affordable.

It will be several years before I can buy a home so I'm also learning to see how to determine how much house one can afford. To me though one important factor is I would HATE to be in debt for 30 years and know that the bank truly owns my home for that long of a time. So my personal very biased opinion is ability to pay off entire house in 10 years. Granted I am also in an above average income profession so there's that.
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tainted-meat
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Re: How much house can you afford to buy? When is it to much

Post by tainted-meat »

Don't forget about taxes and insurance as well as maintenance costs. I personally would not want to put that much into a house but that's just me. I like to be mobile if necessary although I'd like to stay in KY long-term. You just never know what life throws at ya - better to be cash rich than house poor :D
853211
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Re: How much house can you afford to buy? When is it to much

Post by 853211 »

When my wife and I bought with a similar income to you sat that point, we went with 3.5x the lowest year salary as the mortgage and then anything else forced ourselves to have in savings.

Put us in a non-starter home neighborhood with amenities in SC. We have gone into the next price range but when we do upgrade, that next bump is uber comfortable. Not one that would stretch out our budget.

Let me tell you it's been real nice to have such a low mortgage, 740ish range as our careers and income have taken off. Our monthly nut is a small portion of our income and while something in the range you suggested was doable, it was more house than we needed at the time and I wanted to make sure if either job was lost, we'd be more than okay.

You're young and in a low cost of living area, choose wisely and smartly. You've got plenty of time to upgrade ( and very well may want too). What do projected earnings look like 10 years out and how does that compare to the next 'bump' in your housing market?

It's a big decision, take your time with it. Can you do a few months and have that money missing from your income as a test?
livesoft
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Re: How much house can you afford to buy? When is it to much

Post by livesoft »

We went with 2X gross income of higher earning spouse for home price and 20% down payment. Also waited until late 30's to buy a house. We are still in the same home today. Our home value has increased over the years at a pace slightly under the rate of inflation. Our area is a low cost of living place, but is now growing due to major corporations moving into the area.

The description of the home in the OP (4 br, 4ba) sounds nice. Maybe it is OK; maybe not. While shopping for a home, we had two main considerations in mind:
1. Close to my work (very short drive, easy bike ride, long walk), and
2. Could we sell the home for what we paid for it almost immediately.

So … from the brief description the OP has given, I would probably not do that home, but I reserve to change my mind given more details.
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SnapShots
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Re: How much house can you afford to buy? When is it to much

Post by SnapShots »

Some thoughts....

All I can tell you is every decade your likes, dislikes, needs, wants and views in life will change. Who knows weather you'll want or like the house in 10-years or maybe you'll need to move. Or, may be not.

You should NEVER look at houses out of your price range because they are always going to be nicer. The excitement and fun of buying a new house/car/what have, ALWAYS dampens after you get it.

The mortgage payment of $1K plus maintenance expenses will be a big chunk of your income. However, in 10-years $1,000/mo payment won't seem, as much as, it does today.

It's really nice not to be House-Poor. Take it from someone who finally paid off an mortgage.

Start out with a 30-year-loan to keep you mortgage payment as low as possible. If you want to pay if off early make extra monthly payments.

What if you bought a house and the payment was $800/mo plus maintenance expenses? Is that enough savings to justify giving up the house you want? Or, $750/mo? $500/mo?

You'll do most of the work when it comes to repainting, mowing yard, fixing stuff. Big unexpected expenses you'll have to tap savings or take out a loan. Sometimes those happen, but such is life.

It a custom built home and assuming it is well built, it may have fewer maintenance issues than something less expensive. It's something you can grow into, if you have children.

Best to you....
Last edited by SnapShots on Sun May 04, 2014 12:09 pm, edited 1 time in total.
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stan1
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Re: How much house can you afford to buy? When is it to much

Post by stan1 »

Do you expect your incomes to rise significantly over the next 5-10 years? This is often the case for people just starting out in their careers - but not always so. A $250K house on a $70K income in a low cost of living area seems a stretch to me. I think you should be looking in the $180-210K range -- unless you have good reason to expect your salaries will be in the $100K/year range within 5 years. If you lived in a HCOL area you wouldn't have a choice -- but you don't so why become house poor?
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tim1999
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Re: How much house can you afford to buy? When is it to much

Post by tim1999 »

I don't think I'd go much over $200,000 home value on a $70,000 income, assuming you've putting at least 10% down. And only if property taxes are dirt cheap in your area - like under $2,500/yr. for the type of house you are looking at.

Get a cheaper house on a 15 year mortgage (under $200,000 if possible - probably won't be a McMansion) and trade up later on after you've built some equity.
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gator1
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Re: How much house can you afford to buy? When is it to much

Post by gator1 »

ginmqi wrote:Also remember to take into account other cost of homeownership: tax, insurance, maintenance, utility, and HOA fees and factor that into the monthly cost.

You're already a great step ahead with knowing what your take home, after-expense money is each month (which includes retirement savings of course).

My own humble opinion (no homeownership yet) is I want my home to be paid off in at most 10 years. So I will likely take a 15-year fixed rate mortgage.
Yeah the $1,000/mo figure includes all of that minus utility and water bills.

We thought about 15 but feel 30 is better as we don't want to ever get in a bind. We plan to make extra payments to hopefully pay it off after. 20 years. We want to retire in our mid 50's.



853211 wrote: You're young and in a low cost of living area, choose wisely and smartly. You've got plenty of time to upgrade ( and very well may want too). What do projected earnings look like 10 years out and how does that compare to the next 'bump' in your housing market?

It's a big decision, take your time with it. Can you do a few months and have that money missing from your income as a test?
The housing market is weird here. There's never been an issue with foreclosures or short sales. There also isn't a lot of "middle-class" homes here($150-200k). You have a lot of $100-130k houses but they are small and need a lot of work. I would rather keep renting then get into that. But my spouse is ready to buy now. The next level of homes are $300k. That's why this house is intriguing, there's not many other options and this house looks and feels like a $300k house.

Aw far as future growth goes. Her job is a teacher. My job is with Apple(entry level). I could always get advanced but a promotion would mean moving to Cupertino(CA) or Austin(TX). I would definitely prefer Austin and it would be more likely as that is where we are expanding. I would probably get a $20,000/yr raise if I did that and her salary would probably improve by $10k immediately. They would also pay to relocate. But, I have no clue if that will ever happen. If she stays at the same district as now and I stay where I am, her salary would probably increase $6,000 in 10 years, same for me.



livesoft wrote:
The description of the home in the OP (4 br, 4ba) sounds nice. Maybe it is OK; maybe not. While shopping for a home, we had two main considerations in mind:
1. Close to my work (very short drive, easy bike ride, long walk), and
2. Could we sell the home for what we paid for it almost immediately.

So … from the brief description the OP has given, I would probably not do that home, but I reserve to change my mind given more details.
It's a very well built home. All custom brick, less then 10 years old. It's far from her work but would feel like a block away for someone in LA traffic. I think we would be able to sell for what we paid immediately.



SnapShots wrote:
Start out with a 30-year-loan to keep you mortgage payment as low as possible. If you want to pay if off early make extra monthly payments.

What if you bought a house and the payment was $800/mo plus maintenance expenses? Is that enough savings to justify giving up the house you want? Or, $750/mo? $500/mo?

You'll do most of the work when it comes to repainting, mowing yard, fixing stuff. Big unexpected expenses you'll have to tap savings or take out a loan. Sometimes those happen, but such is life.

It a custom built home and assuming it is well built, it may have fewer maintenance issues than something less expensive. It's something you can grow into, if you have children.

Best to you....
Yeah 30 year mortgage is the plan. Something in the $700-$800 price would get a house that isn't very nice. This house is built extremely well. The good news is the house has newer appliances and the home itself is less then 10 years old. It's move in ready.

stan1 wrote:Do you expect your incomes to rise significantly over the next 5-10 years? This is often the case for people just starting out in their careers - but not always so. A $250K house on a $70K income in a low cost of living area seems a stretch to me. I think you should be looking in the $180-210K range -- unless you have good reason to expect your salaries will be in the $100K/year range within 5 years. If you lived in a HCOL area you wouldn't have a choice -- but you don't so why become house poor?
$250k is the appraisal. They are asking $200k.



Cherokee8215 wrote:I don't think I'd go much over $200,000 home value on a $70,000 income, assuming you've putting at least 10% down. And only if property taxes are dirt cheap in your area - like under $2,500/yr. for the type of house you are looking at.

Get a cheaper house on a 15 year mortgage (under $200,000 if possible - probably won't be a McMansion) and trade up later on after you've built some equity.
Yeah we are putting over 10% down. The property taxes are $1,600 a year. Pretty cheap.
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Watty
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Re: How much house can you afford to buy? When is it to much

Post by Watty »

$250k is the appraisal. They are asking $200k.

Are you sure that isn't the tax assessment? If so that is much different than the market price and should not even be considered in figuring out what the house is worth.

You can pretty much throw out all the “buy a house that is X times your income rules” . Those are worthless since they don't take interest rates into account and what is reasonable with a 4% mortgage is much different than if interest rates were 6%+ like they were just a few years ago.

One thing that you might want to do is to make a copy of last years tax return and to enter the mortgage interest and property taxes to see if it has much impact on your taxes.

Once you have adjusted for that you can look at what the net monthly cost would be compared to the rent that you are paying now.

The question then becomes if the $XXX a month difference is worth it to you or not. With a house you will have maintenance costs, but with renting you will have future rent increases. If you stay in the house long enough the maintenance costs will be less of a factor since ten+ years of rent increases will add up and at some point in the future the rent increases will cost more than the home maintenance costs. Part of each months mortgage payment is also paying down the principal so it is in some ways "forced savings" which is a bit different that an expense that it totally gone.

If your $1,000 a month figure is correct then coming up with the couple of hundred dollars a month extra it would take to make a mortgage payment is very doable so I don't see that as being a huge issue.

In your posts the thing that I would be concerned about is if you want or need to change jobs if that would require you to move.

You should also take a hard look at ways to come up with the full 20% down now. The rules on getting rid of PMI changed a lot in the last year or two for some types of loans which can make it very difficult or impossible stop the PMI without doing a full refinance.
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Re: How much house can you afford to buy? When is it to much

Post by JonnyDVM »

I think the 3X gross rule way overestimates how much house one can comfortably afford. I am in the camp of ~2 to at most 2.5X gross. That being said, we love to travel and dine out. I would rather live in a smaller house and travel a ton and spend money on other things than buy a larger house and make that big payment. Right now our mortgage payment is ridiculously low compared to our income and it's a nice feeling. Gives us money for other debts and fun. If you don't like to travel like us and plan to mostly just hang out at home then I would say 1k total is very doable, just realize you're restricting you're ability to spend on other stuff. If this is your dream house and it'll make you happy then go for it.
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obgyn65
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Re: How much house can you afford to buy? When is it to much

Post by obgyn65 »

I bought a condo in 2008 cash. At the time it was about 10-20% of my gross annual income. It was not the best financial decision in my life. In my opinion, a mortgage representing 25% of my pay would be too risky.
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Ron Ronnerson
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Re: How much house can you afford to buy? When is it to much

Post by Ron Ronnerson »

How much are you spending on rent currently?

What do you think the chances are you will remain in the area?

Personally, I would not be in a gigantic rush to pay off a 30 year mortgage at today's interest rates as it will mean you will be able to contribute less into your retirement accounts. A mortgage payment of $1000 will not be very much as time goes on. Perhaps paying a little extra on the mortgage is okay, but I wouldn't become so focused on it as to lose sight of the bigger picture. If you want to retire early, you should try to put as much into retirement accounts, particularly at a young age. If Inflation is considerably higher in the future, a low interest mortgage payment could end up working for you.
Savvy
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Re: How much house can you afford to buy? When is it to much

Post by Savvy »

We almost fell into this trap. We're mid-20s. You should know how much house you can afford BEFORE looking at houses. Then, try to buy a house below what you can afford. Put tons of work into looking at homes, you can find one that meets your needs for less money.

We bought a house that is about 1.6x gross income. We probably looked at 30 in person and 300 online in our desired price range and desired locations. Be patient, more houses will come along, don't buy this one.
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Go Blue 99
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Re: How much house can you afford to buy? When is it to much

Post by Go Blue 99 »

I think a mortgage that is 25% of your take home pay is definitely reasonable, as long as you aren't big spenders in other areas (which you say you are not). Also, you are young in your careers and may see some nice promotions and raises.

Our mortgage is at 23% of take-home and we don't feel house poor at all. We are still able to save well for retirement and 529 plans, and we also travel and eat out often. Granted, we don't save as much as some Bogleheads, but we are comfortable as we started saving early in our careers.

I do agree with you that 300k is too much though.

EDIT: After reading more of your details, I would not buy this home especially considering you may move soon. You could have a terrible time selling it since you say the town is dying. I would rent for now, and aim to move to Austin to keep your career progressing with Apple. No offense to east TN (my BIL lives in Knoxville), but it's no Austin.
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Re: How much house can you afford to buy? When is it to much

Post by wilked »

gator1 wrote:My spouse and I are looking to purchase our first home. We are in our mid 20's, debt free, large emergency fund, large downpayment
You said 'large downpayment' - what % of the house purchase price are you planning to put down? 30-40%?
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Kosmo
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Re: How much house can you afford to buy? When is it to much

Post by Kosmo »

Go for it. You spend a lot of time in your house, so you want to enjoy it. If this place meets all your needs and most of your wants, and the purchase price and monthly payments aren't unreasonable, and you can see yourselves living there for years to come...what am I missing?
Novine
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Re: How much house can you afford to buy? When is it to much

Post by Novine »

4 bedrooms and 4 baths? Sounds like a lot of house unless you're planning to have kids and are planning to stick around for a while.
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vitaflo
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Re: How much house can you afford to buy? When is it to much

Post by vitaflo »

gator1 wrote: We have been approved for almost $300k and feel that is waaaaaaaaaaaaay more then we want go spend. We have also taken the online calculators and it's near the same #. We have also seen the 33% rule where all housing expense plus debt should be no more then 33% of monthly gross. Since we have no debt that # is around $1,800. Still steep in our opinion.
Our mortgage was for $330k but our combined gross is 4x what yours is. And personally I wouldn't feel good going much higher than what we did. When we were in the $70k gross range a decade ago our mortgage on our old house was for $135k and it felt pretty good.

If they are asking $200k, if you get it for that, put 20% down, a 30 yr fixed on $160k should be within your budget at current rates, especially considering your financial situation.
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Re: How much house can you afford to buy? When is it to much

Post by stoptothink »

Nobody can tell you what the right answer is. By conventional wisdom, buying the home would be a no-brainer, but there is no chance we'd do it. Wife and I are in a similar situation, 33 and 27, zero debt of any kind, and inevitably going to buy within the next year; but our gross is nearly twice yours and $200k is well above our budget. Something we can very easily afford on one income on a 15-yr fixed while still contributing to retirement is non-negotiable, so our budget is $175k (~1.3x income) which almost totally eliminates single family homes in our area. We're both OK with our options (condos and some non new construction townhomes), we both see a residence as hardly more than a place to sleep. On the other hand, my mother last year bought 10min from us; household income is slightly less than ours and they spent $400k (a tad over 3x income) and they are doing just fine and love the home. You can definitely afford it, but you'll probably have to make some small sacrifices when things come up.
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Re: How much house can you afford to buy? When is it to much

Post by SnapShots »

$250k is the appraisal. They are asking $200k.
WHAT!!??? The house you're considering has an asking price of $200K. Therefore it is NOT $250K.

Big difference. :wink:
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William4u
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Re: How much house can you afford to buy? When is it to much

Post by William4u »

Our philosophy is to live in the "least expensive house possible" (given that certain conditions are met). In east TN, we'd go for a 150k house. Houses are money pits, and we would rather use the money for other things like spending time with family and friends on vacations.
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Re: How much house can you afford to buy? When is it to much

Post by Beth* »

One of the best financial decisions my husband and I ever made was never to buy a house that we could not afford on one income. One of my children had some medical problems as a baby/toddler and I was able to make the decision to stay home full time for a couple of years. Finances were very tight (no vacations, no eating out, minimal clothing purchases from thrift shops only, etc.) but at least we didn't have to sell our house so that I could take care of the child. That house had 1,300 square feet and one bathroom and we lived in it until our children were 8 and 12 with no problems whatsoever. By that point we could buy a larger house (which we could still afford on one income if it ever became necessary) and we did. Since we have had two good incomes for many years, we were able to save for our retirement and put out children through college with no loans.
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Re: How much house can you afford to buy? When is it to much

Post by HardKnocker »

Beth* wrote:One of the best financial decisions my husband and I ever made was never to buy a house that we could not afford on one income.
That's very good judgement.
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Re: How much house can you afford to buy? When is it to much

Post by EnjoyIt »

gator1 wrote:
Aw far as future growth goes. Her job is a teacher. My job is with Apple(entry level). I could always get advanced but a promotion would mean moving to Cupertino(CA) or Austin(TX). I would definitely prefer Austin and it would be more likely as that is where we are expanding. I would probably get a $20,000/yr raise if I did that and her salary would probably improve by $10k immediately. They would also pay to relocate. But, I have no clue if that will ever happen. If she stays at the same district as now and I stay where I am, her salary would probably increase $6,000 in 10 years, same for me.
No kids, with a chance of moving in the next 5 years tells me not to even bother buying. Save your money. When you can guarantee that you will stay in that home for at least 5 years (some will say 7-10) Then go ahead and buy. It takes years to recoup the cost of closing on a home when buying and then later selling.

Houses are a money pit requiring your own maintenance and upkeep. The bigger the home, the bigger the costs.
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Ron Ronnerson
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Re: How much house can you afford to buy? When is it to much

Post by Ron Ronnerson »

Beckmaster wrote:No kids, with a chance of moving in the next 5 years tells me not to even bother buying. Save your money. When you can guarantee that you will stay in that home for at least 5 years (some will say 7-10) Then go ahead and buy. It takes years to recoup the cost of closing on a home when buying and then later selling. Houses are a money pit requiring your own maintenance and upkeep. The bigger the home, the bigger the costs.
I agree with the comment above but would add one more thing: In addition to the costs involved, think also of the hassle of buying a home, getting it all set up and furnished, finding out you're going to be moving, and then having to sell shortly after getting settled in. If there is a good chance you'll be moving, I'd definitely wait to buy until things were more certain. In the meantime, you can continue to save so that you have a bigger down payment. A big down payment may also result in more favorable loan terms when you do buy.
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Re: How much house can you afford to buy? When is it to much

Post by Nowizard »

Your posts seem to indicate you really want this house. All of the comments are good regarding you are young, you could afford it but......., etc. Bogleheads are conservative, Realtors frequently suggest buying at a level that stretches you. That is to their financial benefit but also reflects that people who have done as well as you at a young age have a high probability of continuing to do well. The size of the house does not matter. The costs are the issue, and the fact you can get a larger home for much less in Tennessee than you could in other areas is just your good fortune. If you are looking for a home to make a good investment, maybe this is not the best move. However, you can afford it based on what you have said. At 200K it represents less than 3X annual income, taxes are low and it is a house you can keep for a long time even if you have children given its size. Get a thirty year loan and pay more on it if you wish to do so. One key is how much you put down on the home. We live in Tennessee also and know it is a low cost state. You have no income tax, only the Hall tax if you have large income from interest and dividends, low property taxes and the home is relatively new.

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feh
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Re: How much house can you afford to buy? When is it to much

Post by feh »

Too much house and too expensive for your income.

This is where you decide if you want to live well within your means, or not.
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Re: How much house can you afford to buy? When is it to much

Post by bucksfan2 »

Do you feel comfortable continuing your lifestyle on $3,000 a month?

From my perspective you can afford this house. It doesn't sound like you have expensive tastes or hobbies. One thing to consider when you do purchase a house is all the expenses that go along with it. Do you have enough furniture? Will you need to buy appliances or have they been left? 4 bedroom and 4 bath with a full basement can take a lot furnish. You are probably going from a 2 bedroom apartment to a 4 bedroom house, there is a lot of space that needs to be filled.

I don't buy the "instant equity" comment. If you are the only ones willing to pay $200,000 what makes you think that someone will come along willing to pay the appraised value?
sls239
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Re: How much house can you afford to buy? When is it to much

Post by sls239 »

Well do you want to continue "penny pinching?"

Because if you buy that house you will almost certainly have to. I don't like houses that require penny pinching personally.
Middle
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Re: How much house can you afford to buy? When is it to much

Post by Middle »

Yes, it seems like a 4 bd 4 bath house is more house than you need. And that usually means more utility and prop. tax costs than you need too.

I would also say you don't necessarily want to buy the best house on the block either especially in an area that you described as a dying city.
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kenyan
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Re: How much house can you afford to buy? When is it to much

Post by kenyan »

gator1 wrote:
ginmqi wrote:Also remember to take into account other cost of homeownership: tax, insurance, maintenance, utility, and HOA fees and factor that into the monthly cost.

You're already a great step ahead with knowing what your take home, after-expense money is each month (which includes retirement savings of course).

My own humble opinion (no homeownership yet) is I want my home to be paid off in at most 10 years. So I will likely take a 15-year fixed rate mortgage.
Yeah the $1,000/mo figure includes all of that minus utility and water bills.
I highly doubt the $1k/month includes a good estimate of maintenance. This is one area that is consistently underestimated by those who haven't owned a house before. A 4/4 house with a yard could easily cost you $300-400/month in maintenance. A decent first-order estimate for maintenance is 2% of the value of the dwelling per year (ignoring land, which is probably only a small portion of the house price in your area). That assumes that the place has been maintained in the past and isn't in need of any major upgrades when you purchase it. Elective upgrades are above and beyond these numbers.

You can probably afford it with a stretch, but don't assume that $1000 is your cap - examine your budget with a larger cost. Make sure that you actually want to buy a house though.

Also, for those asking about the tax benefit, I would doubt that you're looking at any tax benefit. You're married, living in a low cost area, and you'll have to find
$12,400 worth of deductions before you get your first cent of tax benefit. $190k * 4.25% + Property taxes = 9675 + some minimal sales taxes + ? still doesn't get you to your standard deduction, unless you're big charitable givers.
Retirement investing is a marathon.
853211
Posts: 71
Joined: Sun Jul 21, 2013 7:05 pm

Re: How much house can you afford to buy? When is it to much

Post by 853211 »

HardKnocker wrote:
Beth* wrote:One of the best financial decisions my husband and I ever made was never to buy a house that we could not afford on one income.
That's very good judgement.
Just to repeat this, there's a lot of value in knowing that if anything happened to either of you job wise, the smallest income could keep the house running.
scone
Posts: 1457
Joined: Wed Jul 11, 2012 4:46 pm

Re: How much house can you afford to buy? When is it to much

Post by scone »

The "dying city" issue would worry me. You can change the house, but not the location. If the town continues to deteriorate, you might not be able to sell it even if you really want to get out.
"My bond allocation is the amount of money that I cannot afford to lose." -- Taylor Larimore
mikefixac
Posts: 121
Joined: Tue Mar 26, 2013 2:00 pm

Re: How much house can you afford to buy? When is it to much

Post by mikefixac »

You have nothing to lose. Why not a $20,000 house first? Pay cash, put in some sweat equity and if you're not happy after 1 year, sell it.

It was a few of these deals that set me for life, not not going out to the movies, restaurants and such.
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