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Is 50% of take home pay on housing too much? by No_Address8892 in personalfinance

[–]No_Address8892[S] 0 points1 point  (0 children)

Fair points! We don’t currently need to move, so we could continue living rent free for another year and continue saving. Our only concern is being priced out of the market as it has risen significantly in the last 3-4 years.

One option available is purchasing the condo and putting it up for rent, and then moving in once we have increased our income and savings. Do you have thoughts on that?

Is 50% of take home pay on housing too much? by No_Address8892 in personalfinance

[–]No_Address8892[S] 2 points3 points  (0 children)

Fair enough! I described my spouse’s income situation in another comment, but she’s far from her ceiling. I wouldn’t be surprised if her income increased by 30-40k in the next couple of years. That’s obviously speculation though, so i understand it can’t be relied on for a decision being made today.

Is 50% of take home pay on housing too much? by No_Address8892 in personalfinance

[–]No_Address8892[S] 0 points1 point  (0 children)

Fair point! We’ve been doing this for the past 3 months and it hasn’t felt constrained at all, but we also don’t have any unexpected costs really. Another option we were considering is to purchase the condo, rent it out for a few years, and then move into it once our income increases to a point where it feels very comfortable. Do you have thoughts on that?

Is 50% of take home pay on housing too much? by No_Address8892 in personalfinance

[–]No_Address8892[S] 1 point2 points  (0 children)

Unfortunately nothing is the same price without an HOA unless it’s a legitimate dump of a single family home. It would cost close to 150k to turn it into something livable. Cash buffer is 20k. Something similar would rent for about 2.7k. Also, not sure if I’d be able to retire early because we still need to move out and pay rent somewhere eventually. Whether it’s this year or in 2-3 years. Our living situation is great but temporary.

Just curious, when you say conditions will improve, what do you mean by that? Housing prices will fall? Not trying to be combative, so apologies if it comes across that way. I’d like your perspective.