Can I afford a $600k house?

Can I afford a $600k house?

My girl and I are sciency fucks making $230k/yr gross together (~$150k net cash in the bank). We don't spend a lot of money and currently live in a shitty one bedroom. We have saved up ~$230k cash in the bank (inb4 retards for not investing before, i know).

Anyway, we've been studying the housing market in our area for like 3 years and recently decided to actually actively look. After much pickiness we found a $600k house that is perfect for us but we may want to put in a pool (~$50k). This is by far the biggest purchase of our lives and we are both nervous as fuck.

We totally googled/stalked the neighbors (pretty much the exact same property) and they are like insanely talented people. Guy is a PhD engineer from MIT working in oil and gas and the wife is a PhD in Biology(?) from Yale with a MBA from Stanford, don't know what she does though. Also they both seem to be about 10 to 15 years older than us.

So my question is: are we in way over our heads? Is this level of housing really for people with a lot more money?

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why would you spend that much? you could buy a house with cash.

"Yes, honey, I'm sure we should buy it. Some guy on Sup Forums told me we could afford it."

if you need to ask, yes, you're in over your heads.

over half a million dollar home? why? you can live in relative luxury at half that price.

>how much is your mortgage?
>how steady is your job?
>if you lose your job for a year, will you lose your house?
>will you have kids in the next 10 years?

Don't put in a fucking pool btw. They are a nightmare.

What state are you in?

...

You could probably do it assuming no prior major debt and assuming you won't have to dump a piss ton into fixing it up/renovating. Just don't expect to instantly be able to buy 2 brand new vehicles and other various luxuries for the first few years. Every house tends to take 5ish years of fund dumping to get into proper shape.
And this

For that kind of income it's definitely not a bad idea. Real Estate is usually a fairly decent investment

You fags net gross almost a quarter mill? Fuck both of you. And sure why fucking not. You need to put down 20 percent or carry crazy pmi on a half million plus loan. That'll leave you 30k for your fucking pool and almost no savings.

For sciencey fucks you sure are stupid.
Put together a budget using actual mortgage info.
Google "mortgage calculator" to see how much you can get and what payments will be. Don't forget local taxes, but also don't forget the interest deduction.

>Real Estate is usually a fairly decent investment
lol, no

>600k house
>take five years to fix up.

I'm guessing you don't into real estate

it was back in the 90s. not so good in 2005.

>Implying you know good investments

What is your credit and debt load like?

both of these people don't understand that a $50k material "house" can cost between $60k and $1m depending on the property

op isn't answering questions, fuck this I'm out. he was probably just here to brag about his income or something bullshit like that.

Doesn't matter retard. They'd be spending almost all their cash to not get fucked on PMI. They could have zero debt and it's probably not a great idea.

nigger... even if we could afford it cash, it's better to do a 30 year loan for tax purposes and because the time-value of money

well, i just want some opinions... obviously, i think i can afford it, but im no expert in this shit and have zero experience

not unless you live in the middle of fucking nowhere... this is the cheapest house we found with a perfect balance of in-town location and comfy-ass living

>Mortgage: $4,300
>Steady Job: Mostly... you never know though
>If one of us loses their job, we can still make money every month but we would just tighten up our lifestyle a bit
>kids, probably yes

yes you can

You should get a decent place for half that, pay it off twice as fast, rent it out and buy another place

>spending 650k on a house and still having neighbors

seriously dude get you a 3-4 acre lot somewhere and build your own house and enjoy privacy

Look how cute the little puggy is!

You're right when I'm looking at half million dollar properties I'm assuming I'll dump anywhere between 50k and a million dollars in renovations

Depends on where OP lives. I can tell you in the DC Metro area $600k is a 1750-2200 SQFT home with 2 car garage...which in any other metro area would cost like $250-$320k.

he is probably in san jose or some other area where housing prices are extremely high.

Bubble is bursting soon. $600k is way too much for a house.

Honestly, go for it. But you'll regret that pool. I'm assuming in ground and maintenance isn't cheap. And hope you like living there because no matter what in this market, you aren't going to get shit back in return.

Depends on where OP lives...if they lived in alabama that'd be rich person money. In Cali or Northern VA, that's middle middle class money.

Yeah you're coming to 4chins(fucking Sup Forums of all places) save your money and get serious financial/couples counseling before undertaking something that will HUGELY affect both of your lives i will assume you're a troll from here on out unless i see timestamped bank balance or your gf's tits so get to it OP

I meant to make it "your" home. It might need some fixing, you might need to refurnish/furnish it, maybe addition or an interior rebuild, landscaping, new/different utilities, misc., etc.
maybe it comes perfect maybe you'll be dumping twice the asking price alone just to make it a home.

This guy gets it. That dog is one adorable fucker.

Sounds like you can afford it but it would be dumb to buy in your case. Owning a house limits your career choices for at treat the first five years.

Your better off saving.

Is it necessary to name call? If they don't want to put 20% down (with 230k in the bank I don't know why they wouldn't), then they can do a second mortgage and avoid PMI.

depends on where he's buying....in Cali, NY, DC Metro, that 650 is a 1 acre lot with an average home.

Fucking this. Bought 100+acres of hills, woods, fields, and a giant fucking lake for under 90K. Built my house how I wanted it for about the same as the acreage. Fucking awesome living away from people and cities. Walk out on my deck, take a piss, and go back inside.

OP here, this was also me The house doesn't need fixing, anything added would for preference

The area that we are looking at is pretty solid against bullshit prices going up and down. It's a well established chill area. So we won't make much money riding a bubble up, but we don't expect to lose money either, unless something insane happens.

Yeah, we may save up for a year or so before the pool.

Nigger... I have excel spreadsheets and matlab code calculating all of this shit. Based on the stuff I can come up with, it seems like we can afford it. But I'm just worried that I'm missing a major aspect of this.

Credit is nearly perfect, just below 800. No debt. We might as well be jews. We don't spend on anything. Just whiskey... and backpacking-type vacations

yep, location is key

im here faggot

can you explain more?

lol, yes.

Seriously though. The entire US economy is basically backed by and pinned to real estate.

Do you have an educational debt?

Calculate it all you want you're not a banker/real estate agent/etc. so as you said you are kissing out on any number of critically overlooked details, talk with an actual professional you nigger.

>

yes, sounds reasonable. most people wouldnt have the 20% downpayment. but you have more than enough. so a 500k jumbo mortgage would run you maybe 3500/mo depending which is about 1/5 your gross income plus gives you deduction, i would say you would have no problem and have a comfortable safety margin to boot.

>PMI

Private mortgage insurance. Can figure about 100-150 per 200K mortgaged. So your 600K house would cost an extra $500 or so dollars a month for the life of the loan and doesn't count for shit toward paying it off.

Or at least that's what I was told when I bought my house.

Deck pissing is the best. Can't tell you the last time I pissed in a toilet at home.

You'll want a debt to income ratio of less than 80%. Debt in this context is anything on your credit report.

Which, btw, get a free credit report. If you're in the US, that is. In the US you get one or two free a year. Don't listen to cucks who say that credit report pulls hurt your credit. Just do it. It's good to know, if anything.

You'll want to get a loan that has your loan-to-home-value ratio at 50% or less. You'll wanna put a lot down.

Keep your DTI and LTV low and with good credit you should qualify for a decent rate. You might want to get an Adjustable Mortgage Rate for like a 10 year term and then update it at year 7 to whatever the rate is then. Kind of a guessing game though.

When applying for a loan have paystubs and asset documents ready to submit.

When you get your loan estimate post it. I'll be waiting, user.

ATM in NZ it's $930,000 nzd for an average house.

Hillary is about to fuck everything up. Get ready for the massive tax hike when she takes over and kiss your deductions goodbye. Go for something less expensive and get ready to lose you're ass over the next four years if she takes over.

You and your girl wont last. Gotta wife her up first nigger

Ok well the long standing rule of thumb for buying a house, if that you can afford a house that costs three times your annual income, and it not be too rough on making the mortage payments. You can easily do that. One thing that's contradictory in your post, is you say 150k in bank, and 230k in bank, which is it?

Put down 120k on the house, no pmi insurance fees that way, and leave 30k in the bank for a rainy day emergency fund (if you have 150k number). If you have the 230k number in the bank, I would put a bit more down, still make sure you keep up your emergency fund for just in cases. No point in putting in a pool this year, summer is over before you would be in the house. Think about it until next year. 50k is a lot of money for a pool, perhaps go cheaper and put in more landscaping/fancy hot tub etc. beside it, a year or two after that? Either way, I wouldn't put in the pool until you could pay at least most of it, in cash.

Keep in mind, house will cost more than you think, and once you move in, you may find a few things needing repairs or just remodeling, so make sure you keep that emergency fund etc. with some extra in it for unexpected repairs and so on.

Hope this helped.

PMI is highly variable. I have a $130k home and pay $40/month in MI.

here
Does the home have an HOA?

yea, but we'd have to move to the suburbs or to niggerville in the middle of the ghetto... fuck that shit

we like living in the city

Yea its a big city where a 2,500 sqft lot with a decent townhouse on it costs this much.

i dont know man... i think it already burst

yeah, i am fully aware that the pool is a cost and not an investment... but it would be so fucking cool... i was always jelly of people with pool when i was growing up

just middle class here...

dramatic

this! this is one of my fears... but at the same time, we have a pile of liquid money in the bank doing nothing for us... and meanwhile, we are living in a piece of shit one-bedroom apt that creaks whenever the wind blows

For $600k in Vancouver you could almost get a suite above someone's garage

Deck piss master race reporting in.

>go outside with cup of coffe
>take a look around
>take cock out of pants and just piss
>gentle breeze blowing across your ball sack
>that feeling? its called being a man
>dick out, drinking coffee, piss just flying into yard
>get done, go back inside, get shit done

Sorry nigger. They gross 230k have 150k saved they won't be able to use a second mortgage for sometime.

Private mortgage insurance will run an additional 1.3 (probably) on the loan balance.

I guess you'd be fine I own two houses combined at that valuation making 70k so you educated trust fund babies should be able to pull it off. Id say supply is limited still might as well buy lmfao Fuck it its just money

fuckin right

Texas Fag here enjoying the well water and deck pisses

In Gila Bend, AZ you can have a mansion.

P.S. Pool runs your electricity bill through the roof.

>wind in balls
>self drying
>never piss driblets

Toilet cucks must be ashamed.

>
yeah that is one thing to think of, if buying jointly, and odds of separating 50%, banks wont like if you're not married. type of title becomes critical. becomes a major nightmare costing major bucks if u split up and is jointly owned

>My girl and I are sciency fucks
It will all come crashing down once you realize you're a cock craving faggot

Ah shit I forgot how cucked city fags are with their non optional sewage and shitty city water.

It seems crazy to me that somebody can build a water and sewage system and FORCE you to not use your own equipment AND FORCE you to pay for it.

tfw a shitty ass house in vanvcouver is 1 million+

>pools cost money

Fuck off. and get solar OP for your tax credits.

i grew up in the suburbs on tiny lots and just rows of houses in a middle class neighborhood and it was so shitty.

the people that live there are all pumping out kids constantly and call the cops for the smallest things

now ive got 4 acres and can shoot guns right on my porch

The banks don't give a Fuck who is on the title where do you idiots think this shit up. Title is only worth their equity share

Since this thread is up, what is the general opinion of settling in somewhere in upstate NY in the middle of nowhere basically?
I've visited the area for work and just loved the fact that there's forest right outside people's back doors

I work for a bank and we don't give a shit about marital status. Title is up to you on how you want to own the property. Coborrower doesn't need to be a spouse in many cases.

no, both of us worked through college and grad school and got scholarships and stuff... it's no MIT, but fuck it...

yea that's what i'm kinda looking for here... someone who has gone through this... some insight... nigger

i calculated the mortgage payment at $4,200 including taxes and insurance. but yea, my calculation also seemed like i should be able to pull it off... unless, im missing something major

yeah, im totally putting 20% down... not paying for that bullshit

What is DTI and LTV? I went through a couple banks and lending houses asking for a pre-qualification of up to $600k. The one I liked sent me a letter qualifying me for $700k and they said I was looking at a rate of 3.625% which I think is too high (thoughts?).

dis nigga

we got married in grad school

i meant $150k/yr net in the bank. That's our salaries after tax. Thanks for the tips! Yea we want to stay pretty liquid in case other stuff comes up that we haven't planned for.

No

Kentucky here. No well water though to tap into. And even though the catfish and bass and crappie and even the numerous deer/turkeys/etc love the lake, I ain't drinking that shit. No choice but to pay for water hook up.

This goddamn beautiful bastard knows whats up. No better feeling then wind dried balls.


I feel bad for people who live in cities. You wake up, do the rat race, go home to your shit right on top of each other, and never get to experience life. Best decision I ever made was moving out into the fucking sticks.

>

when they are giving you a loan they do, they want to make sure both are legally compelled committed to pay

I dunno the RE market up there.

Probably expensive in NY nomatter where you go though.

"i calculated the mortgage payment at $4,200 including taxes and insurance. but yea, my calculation also seemed like i should be able to pull it off... unless, im missing something major"

Are you serious? You Americans are getting totally FUCKED in the ass by banks.

My house was 580k (Canada). Based on the money brought forward from the sale of my last house which covered taxes and fees, my mortage was for 450k. Over 25 years that worked out to a 1850 a month. (@2.1% interest)

No wonder your economy fucking sucks.

Goddamn another one. You a porch pisser?

>be last November, first day of deer season
>wake up at like 9 in the morning
>put pants and jacket on
>walk out to back deck, sit on comfy patio furniture
>wait till deer shows up, pick the dumbest looking buck
>shoot him
>friend looked dumb as well so dropped his ass while he stared at dead friend
>enough meat till last through year
>grocery bill just went down big time

No, we don't. In the US giving a loan based on marital status breaks the Equal Credit Oppurtunity Act you stupid nigger.

>

property taxes can be large, like in cities, like in califoornia, houses are a cash cow for states

Debt to income is calculated as all your debts per month- so, your current mortgage, any revolving credit payments like school or credit cards, all that- divided by income. So if I pay a $2 mortgage payment, $1 credit card and $2 auto loan and make $10 a month I have a 50% debt-to-income, DTI.

Loan to value is the amount of the loan versus the value of the house. If the appraisal says your home is worth $10 and you have a loan on it for $9 (you put $1 down) you have 90$ loan-to-value, LTV.

Hope that helps.

Primary borrower is responsible, then obviously cosigner. You can even put people on title that aren't associated with the mortgage it's not a big deal, idk where you get your info

>our interest rates are lower we're getting less fucked

>we like living in the city
Then stfu and pay up, sucker

yea... i know... but.... POOL NIGGA!!! this is the one thing that I know is irrational but i just fucking want it... i grew up kinda poor so it's kind of a big deal for me...

nigger

this is exactly why we are willing to spend money to not live there...

you can simplify anyone else's life to seem meaningless.. you wake up, clean the shit off your cows, punch your wife, fuck your sister, and go back to bed

youtu.be/R_etEhiBd50

Oh, and 3.625 interest is alright. Once you hit 4 start to worry. Almost impossible to get around 2 unless you are part of a special program with a bank or on a really impressive ARM, adjustable rate mortgage.

Tell me if you want to be educated on ARMs, son.

True, you can add 275/month for property taxes. Mine isn't rolled into my mortgage as I prefer to just set the money aside throughout the year and earn interest on it.

Yea but you have to live in Canada.

Thanks!!

>Equal Credit Oppurtunity Act
A creditor may ask you to provide this information if you live in “community property” states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Many banks, such as mine, will not let you waive your escrow payments if your loan to value or debt to income is too high.

That means that this guy can waive his property taxes probably because he owns most of his house or he has very little debt. Most people HAVE to escrow- that means, they HAVE to include property taxes (and home and flood insurance if applicable) in their monthly escrow/mortgage payment.

Okay, alright, you got me. I forgot about community property. But that doesn't necessarily mean we'll deny you a loan, it just means that if you are married your spouse MUST be disclosed certain information on the loan if he or she is not part of the loan itself.

Smartass over here quoting legal docs at me. Shit.

Why are you asking anybody here? Idk if you've been here, but seriously, do it. It sounds like a good investment. Plus if it turns out you sank your money you can flip it on some other poor bastards and cut your losses.

Flipping is difficult and very often results in loss money for the first time investor.

that is pretty low for a 600k appraisal, it would be 800/mo in calif bay area

NP buddy.

Hey, you should look up county taxes on the property you are considering. Go to the county treasurer's website and find it. If you can't, post the website and I'll find it for you.

If you have good credit, and no debt, you could *easily* afford an $800k home.

Just be smart about where you buy - make sure it's in a good market where the value will increase of course.

But yeah, $600k cakewalk, up to $900k being your ceiling.

Enjoy your success friend, I'd stay away from the south and Midwest, naturally.

I bought a condo on the water in Seattle in 2007 for $350k. Today it's worth $600k.

Holy fuck, that's insane.

then 300/mo for stupid HOA in many places, not to mention security alarm fees and on and on

Why would you get a house you can't afford with a woman you might not keep

He's still wrong dude idk why you say he got you.

ew in San Francisco a $600k home would literally be a shed.

you might as well be homeless tbh.

It depends on you rates. I suggest you put down the most you can on a down payment so your mortgage payments can be low. Or, you can rent it out while you do something else so it can pay itself off. Depends on where you live though.

Well, he's neither wrong, I guess- he's just stating a fact that detracts from the truth. Yeah, we can ask about marital status but we cannot judge your loan based upon it, except for very rare cases (which do most often involve community property) but it mostly has to work on a qualification basis that is laid out very clearly.

Sorry you had to move here. I was luckily born in the sticks. I feel if more people had that privilege, there might be a greater appreciation for the rural life.

Hell no, renters are hell. Our last ones painted the fucking bath tub black.

No regrets. Just time for a change. I sold my shit, moved my wife into a rental, and started looking. Found the land and we both decided city life was enough. Sure, KY has its problems but that scenery tho. And living more rural is way better. Just goddamn peaceful. No sirens, no car alarms, no shit. Right now, sitting out back having a cold beer and a cig being played the song of the frog people. Brightest sky I've ever seen. Can even make out the Milky Way. You can't get that shit anywhere but in the rural areas.

Plus that garden. City cucks don't realize how much better food tastes when you plant it, hoe it, water it, weed it again, and then harvest it.

>dem based green beans