Assume 20% down but able to put more 4M NW Have an idea of what the online calculators say, but what would you be comfortable with? Please share rationale in comments TY
How much of your 4M NW are you putting into the house. Cause the answer to that gives a number somewhere between 0 and a million.
Oops, added. 20%, 600K
TC is important for this mate, especially for a $3M with 20 down. You’re looking at 19k a month in payments without maintenance. So that leaves you to make atleast twice of that(33-38k) post tax to feel good especially if you got kids and vacations and nice cars. 650-750k HHTC. Not factoring in layoffs as long as your net worth remains that way
It is quite simple. Do you have enough cash flow per month ? And can you pay more than 20% down? If yes and yes, then go ahead and buy. Remember, in the bay area you are betting on houses to keep going up in price over a 5 year period and to be able to sell almost anytime. So the game is to stay ahead of the needed payments. Usually a 700K TC is plenty assuming you are in your 30s. Make it 1M if you are in the 40s.
If only 20% down…maybe like 800k TC. With 4 million NW I wouldn’t be concerned about building more wealth personally, so I’d just let that savings compound and YOLO with my monthly income. We are around 700k TC, 540k base. With only the monthly base pay and a 9k mortgage a month, we have 4-5k leftover every month. Our total spending is also like 22-24k a month which is higher than many on here.
$3.5M should be comfortable with that net worth and TC
Can you share rationale?
What’s the breakdown of your NW and age? If you are 50 years old with 4M NW then probably not as you earning potential goes down as you grow older. It would only make sense if you put like 70% down at that age. If you’re less than 35, then 20-30% would be good with that NW.
OP are u Indian?
Y?
Obviously, who else wants to buy a house in the bay area