I’m aware there’s a lot to consider here but I’m more asking for anecdotal experiences and opinions.
With that, how much would you need to make in annual income to feel comfortable affording a $1.5M home today? Is $500k in household income more than enough or would you
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Not enough information to say for sure. Entirely depends on your down payment.
If you're making a down payment of 20% ($300k), then yes $500k of income would, in all likelihood, be more than enough income.
Assuming a $300k down payment, a 6% interest rate on a 30yr mortgage, with modest insurance and property taxes, your monthly payment would be around $7,600. Using the 30% rule, your gross income should then be around $25.3k per month or $304k per year.
Again, there's no hard and fast rule that "$500k per year is enough income to afford a $1.5M house" but most of the time it should be.
Add $1-2k if its a condo in NYC but this nailed it.
30% rule doesn’t scale very well. You’re gonna get hosed on taxes at that income level. So $25k per month pre tax is more like $13k post tax. That’s a lot of money (% basis) going towards housing.
If you make half a million a year and can't afford a $1.5M house, you are doing a lot of other things incorrectly.
LOL bro first thing I thought was wtf - and then ran to comments
Thanks for the comments. I’m getting caught up because I’m currently spending 20% of my net post tax income on rent. To spend 20% net on a mortgage with taxes insurance, etc. I’m far off snd 500k wouldn’t work. Guess people are just spending a lot more for housing. I’m not at that stage of life yet so this was more for my own curiosity
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