4 ms·
With 20% downpayment, a $30 year 800K mortgage at 3.75% is $3700/month. That's $44K per year. Not impossible on $150k yearly compensation. And even easier if th
by TomVDB 6y ago
With 20% downpayment, a $30 year 800K mortgage at 3.75% is $3700/month. That's $44K per year. Not impossible on $150k yearly compensation. And even easier if the family is dual-income on top of that.
- chrisseaton 6y ago> With 20% downpayment... Where on earth is someone on $150k, renting, going to get £200k in cash?
- triceratops 6y agoNot a single person. But a couple earning $250k jointly can easily knock that out in 4 years or so.
- majani 6y agoBy sacrificing and living frugally for a couple of years?
- chrisseaton 6y agoShort of sacrificing a roof over your head and frugally eating nothing I can't see how that adds up to $200k cash in a couple of years.
- adrr 6y agoSave 50k a year for 4 years isn’t that hard making $150k. Take home is 100k. Rent with a roommate is 2000. Monthly expenses is 2000(mobile service, food).
- RestlessMind 6y agoLet's do some back of the envelope calculation: starting total compensation: 150K. If your partner works a similar job, your combined annual income is 300K. No income tax in Washington State, so Federal + FICA taxes would be ~70K (look up any online calculator). Rent ~1800 per month or 22K per year (based on Zillow's data for 1bd/1ba in Redmond, WA). Living expenses of 2K per month or 24K per year. You are looking at 300K - (70 + 22 + 24)K, or >180K potential annual savings. Let's double the living expenses or throw in student loan repayments on top, but saving 100-125K per year is easily doable for such a couple. And in a couple of years, you have 200-250K for your downpayment.
- chrisseaton 6y agoHmmm... does add up can't deny that. But in reality I don't see many of my professional friends saving anywhere near to this kind of cash. Childcare, loans etc seems to really eat into it.
- s1artibartfast 6y agoYeah, This leads to the general convention of getting a house before having children. It is easier to save and stack cash without them.
- duutfhhh 6y agoA spouse making another 150k is a big assumption. It's mostly males living in such places.
- TomVDB 6y agoUnder these exact circumstances, it took my now-wife about 4.5 years when she was still single.
- vkou 6y agoThat's ~110k after taxes. If you are young, you can easily live off $50k/year, if you don't have children, don't own a car, take the bus to work, and your employer provides health insurance. Food is not that expensive, and you can rent an apartment for 20,000-25,000/year. If your take-home is 110k, you'd have saved up for a downpayment in 4 years.
- romanoderoma 6y agoIs it really that bad? I recently bought a quite big apartment (140 sqm, one balcony and a terrace with a view) at a minute walk distance from St. Peters in Rome for 460k and the mortgage rate is 0.73% at less than 12k/year
- TomVDB 6y agoMortgage rates in the US are much higher (though still low by historical standards) than in Europe. You can get a pretty decent house in the Bay Area for $1M in areas like East and South San Jose.
- scarface74 6y agoBut you can make $135K-$150K easily in most major cities in the US a software engineer with 5-8 years of experience as just a SaaS CRUD developer. You can also get a nice large (3000+ square foot) house brand new build in the burbs in a great school system right in Atlanta for around $300-$375K with an FHA loan and 3.5% down.
- yub 6y agoBut then you have to live in Atlanta... Note: I’m currently visiting my parents in Atlanta from Seattle and, by god, is it miserably hot here.
- scarface74 6y agoWho goes outside? With the big house in the burbs, you can have a home gym..... But there are other cities with nearly the same salary vs cost of living ratio...Nashville, Orlando, Houston, Dallas, Raleigh, etc.