Mana home afforadability range entha?

[soodhilodaaram]

22 hours ago, veerigadu said:

Standard calculation suggested by country's top financial advisor while I worked at chase 

Your car = 3×monthly pay 

Your home= 3*annual pay

Your investments= 1/2 of everything you earn. 

Life style= 15% of your pay

Bill's, mortages and groceries: 30% of your pay. 

Emergency fund: 5 to 10%

PS: I'm single with no kids. This might not be applicable if you have kids. 

this line is pretty much crap or too low

Bill's, mortgages and groceries: 30% of your pay. ..realistically 35-40%

[soodhilodaaram]

20 hours ago, nijamena said:

Just make sure you dont work for bank. 

 

20% 401k I strongly recommend. The more you age, you become less employable. So make sure you have a nest egg. 

 

Dont be house rich. Dont earn in your prime time and then pay the loan to the bank. 

 

If you can wait, hold on to buying house. Keep investing in an asset. Home is not an asset in US market. 

 

With WFH trend, it is very hard to predict if the home prices stay the same in prime areas.

rich dad poor dad concepts real life lo kashtam, family and kids unnaka illu konakunda asset create chesi daani ninchi income generate chesi illu konaali ante not gonna work, house prices are increasing as well while you are trying to catch up on improving financial situation by increasing savings

buy a home that you need not you want, this way you will closer to rental expenses

kids will be gone by 18, buying a home is important from kids standpoint,  unless one is early starter/saver/investor, its impossible to create an asset that pays partly or fully for mortgage is not possible

if one got married after 30 and did not save much earlier, will be in situation

if one if younger and did not get earning opportunity also falls into the same category

final ga and simple.. deepam undaga illu set chesuko, when you are earning more save as much as you can and invest in multiple baskets (real estate, stocks , gold, cash)

[nokia123]

23 hours ago, Vaampire said:

Bills, mortgages & groceries: 30% of ur pay...

I deadified... Ey place lo possible kooda cheppu.

close to half pay mortage ke pothundhi chala mandhiki..paina moodu kalipithe 80-90% of pay..

mari investment or saving emuntadhi ani aduguthe...house lo accrue avuthunna premium ye antunru dosthlu

[PilliBeta]

4 minutes ago, nokia123 said:

close to half pay mortage ke pothundhi chala mandhiki..paina moodu kalipithe 80-90% of pay..

mari investment or saving emuntadhi ani aduguthe...house lo accrue avuthunna premium ye antunru dosthlu

Mortgage should be 30%, if not your money will have more value if you invest. 

See this calculation to see if buying or renting is better for your economic situation. 

https://smartasset.com/mortgage/rent-vs-buy

[yemdoing]

23 hours ago, Gaali_Gottam_Govinda said:

I have seen 2 some Dumb H1b Contractors buy $500K - $600K homes 2 years back.......... oka ataniki job poyi 5 months no job or salary........  Wife emo MS 3 years chadivi last ki MS kooda complete cheyyaledu, so she's just homemaker with 2 kids......... These guys sold their home ultimately and moved back to 2 bedroom Apartment.

 

These kind of people will only learn through real life experience. 

this is my nightmare ... house nunchi moving back to apartment. Once you are used to a better life style. Downgrading will give entire family crippling depression 

[Vaampire]

22 minutes ago, nokia123 said:

close to half pay mortage ke pothundhi chala mandhiki..paina moodu kalipithe 80-90% of pay..

mari investment or saving emuntadhi ani aduguthe...house lo accrue avuthunna premium ye antunru dosthlu

80-90% nenu suggest cheyyanu...

 

house lo accrue avvadam konni areas lo true. I bought a house in bay area 5 yrs back. Current price is more than double to what i paid. Ippudu illu ammesthey bank loan kattaga migilindi antha naa savings ey gaa.

also mortgage ki manam katte daantlo 60-70% interest ki pothundi. Migithadi principle ki.  So u should compare rent with interest amount + property tax...actually interest + property tax ki koncham tax benefit kooda vasthadi. 
inka home sqft gurunchi disco chesthey pedha ramayanam avuthadi.

[Vaampire]

1 hour ago, soodhilodaaram said:

rich dad poor dad concepts real life lo kashtam, family and kids unnaka illu konakunda asset create chesi daani ninchi income generate chesi illu konaali ante not gonna work, house prices are increasing as well while you are trying to catch up on improving financial situation by increasing savings

buy a home that you need not you want, this way you will closer to rental expenses

kids will be gone by 18, buying a home is important from kids standpoint,  unless one is early starter/saver/investor, its impossible to create an asset that pays partly or fully for mortgage is not possible

if one got married after 30 and did not save much earlier, will be in situation

if one if younger and did not get earning opportunity also falls into the same category

final ga and simple.. deepam undaga illu set chesuko, when you are earning more save as much as you can and invest in multiple baskets (real estate, stocks , gold, cash)

Spot on bro..  every inch of my home is properly utilized.  Specific gaa corona start ayinappati nunchi backyard full use ayindi. So many memories in this home. Rent house lo undevi kaavu

[godfather03]

On 12/27/2020 at 12:08 PM, veerigadu said:

Standard calculation suggested by country's top financial advisor while I worked at chase 

Your car = 3×monthly pay 

Your home= 3*annual pay

Your investments= 1/2 of everything you earn. 

Life style= 15% of your pay

Bill's, mortages and groceries: 30% of your pay. 

Emergency fund: 5 to 10%

PS: I'm single with no kids. This might not be applicable if you have kids. 

Car di correct ee na?

[veerigadu]

5 minutes ago, godfather03 said:

Car di correct ee na?

Yeah if your gross per month is 8k ayithe you should look at car within range of 24k. 

[godfather03]

1 minute ago, veerigadu said:

Yeah if your gross per month is 8k ayithe you should look at car within range of 24k. 

Hmm..Ee calculation telvadu naaku intha varaku...Good info.

[Kurrodu1]

On 12/27/2020 at 10:47 AM, andhrabullet said:

120K FL single income aithe entha?

 

considering present market trend and rates.. no other debts 

 

online lo household income * 3  undi... adi mana desks ki workout avuthunda

your debt to income ratio 43 - 45 undentha varaku loan istaru. 

[nokia123]

3 hours ago, Joker_007 said:

Desi people buying homes based on emotional feeling.. most of the times they think that the house can be sold out and the money will be back and they are saving rent on the home... 

its true no?

[nijamena]

13 hours ago, soodhilodaaram said:

rich dad poor dad concepts real life lo kashtam, family and kids unnaka illu konakunda asset create chesi daani ninchi income generate chesi illu konaali ante not gonna work, house prices are increasing as well while you are trying to catch up on improving financial situation by increasing savings

buy a home that you need not you want, this way you will closer to rental expenses

kids will be gone by 18, buying a home is important from kids standpoint,  unless one is early starter/saver/investor, its impossible to create an asset that pays partly or fully for mortgage is not possible

if one got married after 30 and did not save much earlier, will be in situation

if one if younger and did not get earning opportunity also falls into the same category

final ga and simple.. deepam undaga illu set chesuko, when you are earning more save as much as you can and invest in multiple baskets (real estate, stocks , gold, cash)

I am not saying to buy an house from the income generated. I am saying don't be house rich. You need to own a house. It should not be the other way round.

 

I was referring to invest in a good MF rather paying PMI. Wait for the downpayment. That is what I meant by invest in an asset. 

 

I followed Rich dad and Poor dad and I can say from experience it is not as tough as it sounds. 

 

My two cents

[manadonga]

On 12/27/2020 at 11:34 AM, Gaali_Gottam_Govinda said:

I have seen 2 some Dumb H1b Contractors buy $500K - $600K homes 2 years back.......... oka ataniki job poyi 5 months no job or salary........  Wife emo MS 3 years chadivi last ki MS kooda complete cheyyaledu, so she's just homemaker with 2 kids......... These guys sold their home ultimately and moved back to 2 bedroom Apartment.

 

These kind of people will only learn through real life experience. 

aa daridram lo okadu vunnadu bhayya maa friends but full time 

500k with wife not working 

doola teeripotundi 

 

[Galactus]

Net pay lo less than 1/3 unte best 

1/3 will go to day to day expenses

You can invest the remaining 1/3 into stocks or anywhere else etc.

This calc would be excluding your 401k where you contribute some 5-10% atleast depending on your company match