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If it helps put anything in perspective, I also live in So Cal not too far from you. I make $140K and bought a $600K home. I have NO debt other than my mortgage - no car loan, CCs or student loans. My payment is $3350/mo and I am struggling.
It's not the mortgage that's an issue - maintenance is an absolute killer. I've spent over $15K since last March and I have about $7K additional on my list. This isn't cosmetic BS. It's all functional things that were either neglected or badly DIYd. Yes, I had a "great" inspector. Yes, he missed stuff. I have not been able to do any of the "fun" house stuff like paint, furnish or decorate. If I knew then what I know now, I would have happily continued renting.
I really really really don't think you can afford this house. In fact, I know you can't. Please don't count on your fiancés "rent" either. Life is weird and comes at you in unexpected ways. If he chooses to walk out the door one day, what's your game plan there? There's no legal tie unless you're on the mortgage and title together. If you can't afford it alone, you can't afford it.
Can I ask what sort of renos/repairs have popped up? We're locked into our new house soon and I wanna financially and mentally prepare myself for the hardship.
I don't even know where to start, so I'll just say this - I've had to call out an electrician 7 times (and will need him out at least 1 more time) and a plumber 3 times. The biggest miss on the inspectors part was that the house had NO drainage. I found that out when we had an epic winter and couldn't figure out why water was pooling against the foundation. Had to install 3 drains in the front and still need to install 1 more in the back. That whole project will be around 3K total.
There are many more, but I'd have to type like dozens of mini projects here, so hopefully you get the picture. The biggest project planned for next year is to replace the HVAC ducts bc the previous owner had the AC unit and furnace replaced but didn't bother with the ducts 🤦🏻♀️
ETA: I have done ZERO voluntary renovations. All of that money went to fix a bunch of shit the previous owner ignored or effed up.
I have saved so much by just doing things.
It's manageable when it's just $250 for parts and time and not $1500 for someone to come out and do a thing.
Have a furnace and 3 AC units that will need swapped at some point. $500/m already going into a "first thing to break fund"
I’ve read ducts last 10-15 years if they’re the “tin foil” kind. If they’re the hard metal that you see people crawl through in spy movies, they don’t need to be replaced as often. We’re about to replace our ducts when we buy a new HVAC system because they’re 25 years old.
I'm in the same boat. Wife and I bought in May and expected mayhe a few grand worth of things like tree trimming and reparing a fence. Instead tree trimming cost twice as much, and we found thousands worth of hazardous DIY electrical and carpentry in the garage that the inspector missed because it was buried in the old owners crap.
We also just had the worst hail in decades so staring down a $4700 deductible. Not to mention minor shit like buying lawn equipment. The property also has a small chicken coop that turned out to be a maintenance nightmare and cost a bunch to tear down and replace.
In the end we're 50% over our seller credit we asked for to deal with the issues we knew about and counting, eating up all the money I wanted to spend on voluntary stuff.
We live in Southern California as well but within the first year we spent about $30,000 on repairs. Our AC went out in the middle of summer that was about 15,000. Our pool pump exploded after all the replacements. It was about 5000 we’ve had an electrician out a few separate times for fuses that have blown, or switches that just stopped working, which has been around 2000. Last but not least, we had a gas leak due to some of the piping being older in our garage and we had to replace a good chunk of the gas pipes in the home.
Good advice. I'm in the same area and also want to note that this last month our water bill was about 450 and SDGE about the same, which is on the low end for summer. We also just replaced our working but ancient air conditioner and roof for a sum of over 20K. And with a fiance, if kids are on the horizon there's at least another 1K a month for daycare to account for in the budget.
Regarding the rent-paying fiancée: even worse than being house poor is being trapped in a domestic situation you can’t afford to leave. Not worth it, especially if they’re not on the mortgage.
What year was your house built? 2003 is recent but lots of things do need fixing at that 20 year mark. AC if it hasn’t died yet, shingled roof, garage doors, etc. Also when did you buy? If it was during good interest rates, then I am even more concerned for OP, which I am already very concerned.
DO NOT MOVE FORWARD!!! You are definitely house poor. Even if you can manage a year or 2, you will sacrifice everything (savings, investment, emergency funds) to make your mortgage payment.
This is a classic example of being house poor. To buy a 700k home, I wouldn't move forward unless you are making 200k+. I'm giving you advice from having bought an 850k home in SoCal 2 yrs ago. You can't afford it at your numbers. Abort abort!!!
You are asking about our opinions, but I can tell that you’ve already decided and you want to proceed with that house. However, I don’t think you’ll get it since the other offer is $700k.
I found it on Zillow, and honestly, it looks like it needs a lot of work. It doesn’t have a dishwasher, that type of fridge usually dies after ~5 years, and only DIY paint job will cost you around 5k in materials. If it’s just you and your fiancée, maybe you don’t even need 2000 sqft unless you’ll decide to have 1-2 children. House hunting in HCOL is tough, so I wish you and your fiancée a good luck! Try to look for something smaller maybe, but renovated.
Have you talked with a lender? I can't imagine you qualifying for a 540k mortgage on an 80k salary. Your P&I might be $3900 on that loan, but add another $1k a month for prop taxes and insurance. That puts your housing expense at 75% of your gross income (and damn close to equaling your after tax income).
And it's very unlikely, on a residential owner occupied mortgage that the lender will accept your partner's rent payment as income to you for qualifying purposes.
Is this some sort of special first time buyer program? A grant of some sort, or a private loan? Because [FNME Guidelines](https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-6-Liability-Assessment/1032992131/B3-6-02-Debt-to-Income-Ratios-05-04-2022.htm) do not allow DTI that high for conventional mortgages. So if it were a conventional mortgage, there’s no way an underwriter would write this loan (regardless of what any broker pre-qualified you for). Either the pre-qual is a mistake, or there’s some key info we’re missing.
That’s way too much house for your income. Your mortgage and car payment combined take up 66% of your take home. You’d have $1700 a month left over for absolutely everything else in life.
Not sure why OP has even posted - from all replies, they seem determined to get this property so only seem to be looking for reassurance that it’s the right decision (even if the math says it isn’t!)
I wouldn’t say that. I feel like I add additional comments to emphasize what I’m saying.
To be honest ppl on here are talking about buying $250K properties …
A majority of ppl on here feel like they don’t relate to what I mean with my city.
But I appreciate all this feedback, I’m just trying to add my point to make sure I’m understanding
thats because based on your income $250k is the reasonable amount to take out a mortgage on. your comments show you dont have a firm grasp on the basics and your mentally blocked to San Diego and what everyone else in San Diego is doing. your setting yourself up for a painful reality check and likely contributing to the next 2008 crash
I guess what so tough for me if knowing it’s possible to buy in the city I was born and raised in because other ppl I know do it…
Yet whenever I have a plan or get close I get scared from all the negative comments.
Then I watch all the ppl I know build crazy equity and I’ve built nothing. I feel that opportunities pass me because ppl scare me out of it and other ppl
Take the risk and it works out each time . I really get so confused what I do wrong
I don't think you should see it as "negative" commentary, it's more like genuine concern & personal anecdotes based on really crappy experiences. Think a lot of people here just want to help out really. I feel it's possible that, that ship to gain huge equity & have things just work out has left the dock for those of us in Southern California... For now anyway. I feel your pain... My husband & I only barely missed the mark ourselves.
Trust your instincts. People here have no idea what their talking about. The numbers you put down are totally manageable.
I live in San Diego and it was tough but biggest regret was not buying more house. Was stayed under 600 but wish I got somthing in the 700 or 800
I would be more concerned about potentially ghost honestly
I wish I posted this in the San Diego subreddit instead. So much good feedback on here but hard to know which ones are actually applicable.
How come you wish you bought bigger? What’s your story please.
Bought a small duplex in Linda vista for $560 in February of 2020. Really great places were 800k
My mortgage is now $2,500 and get $1,100 in income from one of the units but the current house is tiny 750 sf. I have remodeled it but still need to buy another house eventually can make this neighborhood or house work. Will probably hold forever and cash flow but there were some really awesome places that were around 750k that looking back on were screaming deals in comparison to prices today.
My W2 last year was just slightly under 80K.
I make $60 an hour and work 35 hours a week. My paychecks range $2900-3100 biweekly. So yeah I take 6K a month. Is that not accurate to people?
I make 80k and wouldnt even be comfortable with a $220k mortgage (no one else would be paying rent tho). My goodness I can’t even imagine a 650 mortgage
Brother, the taxes are going to go up tremendously as soon as you buy the house they will do an assesment on it. You will NOT be paying the same taxes as the current owner. Don’t do it to yourself man look for something closer to the 300-400 range maybe a condo etc.
You absolutely cannot afford that with or without your fiancé. Nope. You’d be paying over 60 percent of your income to the house. That’s disastrous. I’m from the area. Look in Oceanside and get used to the commute.
Over 60% of income to housing is wild, and that doesn't even include renovations. I spend 30% including heating, waste management, water and plot rent and I think even that is too much.
I make $80k and my wife makes $70k and we will be splitting a $2100 mortgage and I’m feeling tight lol. Life throws a lot of curveballs but at the end of the day you need to write down every expense you have and see if it’s feasible. Wish you the best!!!
Don't do it. You will be house poor, and then stuck with a house with a more difficult resell circumstance given the homicide should you get into a situation in which you need to sell.
Hi I live in San Diego and I would be what people consider house poor. Like everyone says it’s what you’re comfortable with. I am born and raised in SD and I don’t want to go live anywhere else. We make sacrifices to do that. I got a really great deal for a house my mom helped me get so I couldn’t pass on it. Bought said house for what she paid for home in 2016. House is almost valued at close to 1 mil now according to comps and the real estate websites. It was just too good of a deal to pass and I’m comfortable with what we are paying now. We do have a little extra to play with after all bills and no car payments. It’s all about what you’re willing to pay and be comfortable with. I don’t think you can live in SD and not be house poor unless you make really good money according to everyone. Renting is just as expensive as owning monthly here.
this! I honestly feel like nobody is getting what I am saying.
I've been here my entire life and dont want to leave. Its either pay $3K for an apartment, or $3700 to own something and be the minority.
I feel this house is a good deal too because I'm buying it under what its worth due to what happpened.
But everyone still says its dumb. I feel like in 10 yrs this house would be worth a lot. Also its a huge home, even if I rent it I'd be okay
I think you can make sacrifices as long as you’re 100% aware of what ALL the costs are. do you know that the $3700 is only your principal and interest payment? You need to add like $900/month for homeowners insurance and property tax and about $500/month squirreled away to save for necessary repairs down the road.
OP has rosy glasses on right now. I agree with everything you say. People keep using the city they live in and ignore math. This is worst case of house poor I have seen in a while.
I also live in San Diego. If you can afford then do it! Even if you have to struggle for a little bit. The price of this SFH is the same as a condo right now. No Mello Roos or HOA? Your taxes and mortgage will be set while rent goes up every year. If you really want out, sell, you’ll likely make a good amount of equity by then
I also live in SD and saw the listing for the house you’re going for. Honestly, being house poor in SD is fairly standard unless you are in tech etc and make high 6 figures. If you feel you have enough to cushion for emergencies and house upkeep, then go for it. Your money will grow quickly as equity in SD versus in your landlord’s pocket. If anything, you and your partner can house hack and rent out a room from the beginning so that you can hedge up your finances a bit.
I’d say you’re going to be closer to $4k a month considering the escrow for insurance and taxes. And being pre-approved for an amount is not always what a bank will lend you. That’s determined once there’s a contract and financials are sent in. I would guess you’re very close to or over max for the loan to qualify for this ratio. If it doesn’t then the loan can’t be packaged and sold so typically it won’t go through. Again this would be determined during the loan processing. Sounds like you might actually make slightly more than the $80k but in reality you bring home $6k and $4k will be the mortgage. Fiancé paying is definitely good. My wife and I make $155k in a low cost area and have a $200k loan and it’s comfortable but not rolling in it. I’d never touch a loan that big.
However, if you think it’ll go through and you’re very comfortable the rent from your fiancé won’t go away it’s a good price on a big house in a very expensive market. But make sure you’re still putting away for retirement and saving for home fixes which could be tens of thousands a year. High rent is way cheaper than a mortgage. It’s not equivalent considering fixes, insurance and taxes will all go up annually.
i think it helps in situations like this to play the “what if?” game, so here goes…
• what if… fiancé moves in, relationship goes south, now ex-fiancé moves out. can you afford it on your own?
• what if… fiancé moves in but you lose your job and it takes 9 months to land another one. can you afford this scenario?
• what if… fiancée decides not to move in at all. what’s the plan?
• what if… your $25k for upgrades doesn’t come close to the $150,000 you need bec you discover mold, water damage, mice infestation, or a cracked foundation. can you afford this?
these aren’t really blind “what if” questions bec all of these things, and many many more, have actually happened to me. so what-if it my reddit friend, and then make the decision.
My man…no. I make more than you and my mortgage is $2600 with no other debts and I would not dare to take any more on. My house was $625k when rates were half of what they are now so there’s no way on gods green earth your mortgage is $2300 or whatever you’re saying it will be minus your SOs portion.
And I know, y’all won’t break up and it’ll be fine. I thought that too until my ex and I broke up 2 months into living in the house. I was struggling and had to bust my ass to get a new job and double my salary.
Max out 401k, IRA, emergency fund, general savings, vacations, enjoying life… it’s not about having enough to live off of. New roofs are $30k, new AC units are $8k, having a tree root tunnel into your sewer line is also thousands of dollars. These are when not if expenses that you need to consider on top of just principle and interest payments.
You may be more tolerant to risk than the rest of us and then in that case do what you feel you can handle, but it is a terrible feeling to wake up on the day after closing and realize you’re at the financial mercy of a house you suddenly don’t love as much as you thought you did. And you have another 10,949 days left on the payments.
Please delete, just don't. A key employee of mine did what youbarenolanning. Ignorance leads one astray. House poor is real. My employee stopped maintenance because he couldn't afford it, had to sell the house, at a loss as the maintenance issues and he went bankrupt.
Get a small condo with an outside yard. Get into the game at a lower entry point. 2008 happened because peiple owed on houses they could not afford. Insurance is very expensive now, as are utilities for a home.
Please go more modest to start. 2019 is long gone and your buying power is much less.
Hey I see all these comments, but here is one from a fellow San Diegan. My wife and I purchased a home for 780k and our take home is around 10k a month. Our mortgage is about half our take home pay and we live comfortably, even with our two kids. Housing is always going to be a larger part of our expenses here, its fine and we are happy.
Even with your $5 raise factored in, it sounds like you are putting little to nothing into savings/retirement/investments. Do you typically owe money for taxes in April?
As far as buying the home for “less than it’s worth,” consider that prices are high right now. So a discount on an inflated price…is it really a discount? I’m just trying to say that the home value is extremely subjective, so get that part out of your head completely. Instead, would you be happy there and have you actually worked out the finances? It sounds like you have not.
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I live in San Diego. We bought a townhome for 635k and our mortgage with everything including hoa is 5200. I wish I would stay renting. I low key have a bit of resentment towards my wife and we fight a lot because it stresses me out sometimes. I would wait a bit. It’s just two of us with a dog in a 3 bedroom which she refuses to rent out because she doesn’t like having people that is not family over. Also cleaning a 1 bd apartment is cake cleaning a 3 bd place is a lot more time consuming.
I make 160k and take home 7k/month and my loan is 313k at 6.75%, monthly payments are $2700. My spouse pays $1000 of that.
It still feels tight considering student loans and expenses leave me with ~$2k of play money per month. Makes me a little nervous considering a deck, driveway, roof, furnace, and septic are all possibly needing replacement in the coming years.
You’ll feel super stretched if any big ticket item needs attention
You can afford this house if you own your vehicle(s) outright and are so handy that you'll never need to hire a contractor, plus have enough job security that you'll be able to refinance later with no problems, better credit and higher income. With renting you don't have to worry about maintenance and right now it's cheaper to rent than to buy and own.
If you make it, ten years away you'll have some fun and fantastic stories about things you had to do to get by and you'll be amazingly happy you did it but it's also pretty risky.
ETA: your bank will likely put you at or above the 50% mark for DTI ratio and deny the loan but I could be wrong. They calculate it off of gross income but you'll find this home to be extremely difficult to keep and maintain, even with the Fiancé rent it won't be super comfortable. Crazy to think two incomes at six figures isn't enough to live anywhere but that's the breakdown.
Buying a 650k house on an 80k income is insane. You need to make a HCOL salary if you want to live in HCOL. You're realistically going to want to be making 250k+/year to comfortably live in a house like that.
Bought new construction home in SD and moved in late last year. A month after I moved in, got my first supplemental tax bill for a few thousands dollars. These are things most realtors or mortgage lenders don’t tell ya. It’s not only making the mortgage, it’s everything that comes with owning a home.
Based on your income, you will be out of that home in 2 years or less…
If you are buying the house solo, then you need to be able to afford it with out charging your fiancé “rent”.
Can you pay for it solo, probably. But have you prepared a budget?
Your utility costs will likely be in the $700-$1000 range (water, sewer, trash, internet, electricity, gas, cable, pest, etc)
Home repairs - budget 1% of home value per year.
Had you proposed this differently, such as my fiancé and I are purchasing this home, and our combined income is X, then my thoughts would likely be that you could afford it.
But in keeping the assets & debt separate, and relying solely on your info, then this sounds like over extending yourself.
I would not feel comfortable getting that expensive of a home and I make quite a bit more than you.
Though I know it’s the California market so for all I know that’s as cheap as you can get something out there.
I am also in SD and am in escrow for a higher price. It will be a struggle, I think this won't be easy for you. Keep in mind that you have not locked in the rate. I feel like rates are slightly above 7 at the moment unless you pay points. I am estimating your payments to be around $4,300 a month at 7%. You need to run an excel with all your monthly estimates including food, utilities, fun money, gas, car insurance, etc.
Feel free to dm me if you want more information since I am also in a similar situation sort of.
You make $6k per month.
You want to spend at a max $3850 on housing.
$450 car payment.
So maybe $2150 after housing.
What about 401k, IRA, investments, savings, home maintenance, health insurance, etc.?
That’s a bit too aggressive for my taste just to say I have a house.
If you cannot afford it alone, don’t do it.
You’d really be squeezing your budget buying this house, and if your S/O walks out, or loses their job, or if you cannot find a roommate, or if *they* walk out or lose their job… and just the fact that you’re factoring a roommate into this decision…
Do whatever you see fit for yourself, but I encourage you to really give this some thought.
Do not do it. I'm a financial advisor, but even separate from that, my husband and I bought our home in 2021 when rates were at an all time low. We put down 25% and mortgaged $700k, close to what you are looking at. However, our rate was 3%. Our mortgage (P+I) came out to $2,900/mo, but with insurance, property taxes, and HOA, our all in per month is around $4,100.
Our combined income is higher than yours in present day so it doesn't feel like much now, but back in 2021 we were making around half of what we are today. That number is still around 3x your gross salary. I wouldn't fathom going any higher, and would have never pulled the trigger if we weren't already in a good place. We have no other debt but even then, like everyone here is saying, there are so many unexpected costs that come with owning a home. Everything is now YOUR responsibility instead of a landlord's. That's everything from a leak, changing out lightbulbs, yard maintenance, fixes needed in the walls or flooring, garage door issues, front door issues, window issues, air filter, appliances, it doesn't end.
When you buy a home, you want to make sure you can also enjoy your life living in it. It's more stress than it's worth to stretch yourself thin. Another (better) opportunity will come along, promise.
Edit: by "better opportunity", I'm not necessarily referring to better rates or lower prices. I'm more implying that you are buying a home out of your budget and you will find something more suitable. I understand the high COL (I live in the Bay Area), but talking yourself into a situation where you buy a home above your means and justifying it by telling yourself it's what everyone does in the city is doing yourself a disservice.
Thank you for this.
As a financial advisor what’s the best thing to do with the money if I’m not gunna put it into the house ? Just a high yield account?
I see the house on Zillow . Cosmetic issues like paint which is no problem. House is on a slab, make sure no foundation issues (more expensive to fix plumbing issues) and condition on the tile roof, which should be good since built 20 years ago. Stucco siding is a plus, usually last for almost ever compared to wood siding. Houses around that area 850k+ it’s a good deal even if there was a murder scene lol. Your going to live broke and uncomfortable for a while, and if you manage through for a couple years it will be worth it.
If I made that salary, I would be VERY nervous with that monthly payment. Are you saving for retirement? I would prioritize maxing out 401k before house ownership (unless you will be inheriting lots of $ for retirement). I also wouldn’t rely on a non-spouse for monthly mortgage assistance. But if you plan on renting a room or two out if they leave the picture, that could make it more affordable.
I see. Idk if I can max out retirement ($21K a year) and keep saving for a home though. I feel like I’d never catch up then. I’d have my same savings account number while houses keep rising.
I feel like I should be joining instead of continuously chasing the market up .
Does that make sense ?
I’m currently house poor. When we bought the house, my partner was employed, actually got a big pay raise, and then quit because his new work sucked. He’s been unable to find a job for a year and a half now… I’m lucky I can afford the whole mortgage and utilities with my own salary. Even so, I had to dig into our emergency funds, about $10k so far. I still have a chunk I won’t touch for “fun” renovations because I need to make sure it’s available for potential roof/plumbing issues. Right now I’m at the point where I don’t have to dig into our savings (got a cost of living raise, finished paying off one car early, and second car should by paid off by the end of the year). Might even upgrade our toilet to celebrate! Hahahahaha
First of all, being house poor sucks. But it’s not the worst that can happen to you. These are very serious topics you need to be honest with yourself.
- How stable is your job? How stable is your relationship with your fiancé and how stable is their job?
- Will you be able to afford the mortgage on just your own salary? Does your job have room to grow? For example, do you get step raises/cost of living adjustments, etc. How confident are you that you are competitive to get a promotion or raise, either at your work or at another one?
- How is your (both of you) lifestyle? Can you cut back on some stuff to help continue building up emergency funds? Are you and your partner on the same page regarding savings, budgeting, and lifestyle choices? I think at $25k you’re like one, one and a half major home repair emergency away from trouble. And this is just emergency, not maintenance and upkeep of your current stuff.
- How healthy are you guys? Obviously you can’t predict what will happen but you need to maintain your health. Go to your checkups and dental appointments so that you don’t end up having a $3k dental bill all of a sudden. How good is your health insurance? It’s a sad fact that lots of people are one medical emergency from financial ruin.
- How about family? Are you guys planning on children, do you have parents you might need to take care of or help support? Do you have a network that can help you if something were to happen?
As someone living this life right now, it’s tough but doable. I have a lot of job security (fingers crossed) and I have a habit of saving where I can. And I’ve had a lot of luck (no major medical problem or house repair). It’s allowed us to weather this unexpected hardship relatively ok. I’m not super handy, but I’m working on it. I like being handy and I’m hoping that some of the smaller maintenance I do will help prevent future disaster.
Would I trade all this hardship for not having a house? No way lol Just go in with your eyes wide open and know ahead of time what you’ll need to give up. I’m in a HCOL area and San Diego is as well. The traditional rules don’t apply (house payment being 1/3 of monthly pay?! Whaaat?!). If you want to talk some more feel free to PM me. Sorry about the long comment.
For God's sake, I live in SoCal, too but where you live is not a good justification for going house poor. If you don't make enough, you don't make enough. Don't make excuse for making TERRIBLE financial decisions like you are about to.
My big concern is how well you can manage on one salary. You say you bring in $6k a month and estimated monthly is ~$4k. Check whether that’s PITI (as much as you can considering it’s an estimate lol). Between food, utilities, gas, internet, cellphone, car insurance, car maintenance and service calls, maybe pets… that leftover $2k gets eaten up fast. Just be realistic about what your situation is and whether you can afford it to go awry.
Everyone who lives in metro cities- Do it!
Everyone who lives in rural areas- avoid at all cost, this is bad.
Unfortunately, I am in the same boat, could’ve bought pre-pandemic but hesitated. Prices were absurd, everyone paying $100k+ above asking. Then the pandemic hit, who knew what the economy was going to be and the possibility of layoffs.
Post pandemic would be the right time!!! As we all know, that was a bad gamble.
Similar income, similar down payment— looking at $600-750k properties. It’s just the way it is out here. Los Angeles County for me— and no, moving to another state is not an option.
If I were you, yes I’d buy it. I think some people are shocked because they don’t understand California prices. Many people in CA pay a higher percentage of their salary on their rent and mortgage in comparison to other states. I saw one comment saying that if they made 200k they would feel ok buying a 700k house. Lol, the people I know who are single and make 200k alone are usually looking for houses much more expensive than that. That’s just how it is here.
Yes, you are counting on your fiancé to pay rent, but the great thing about San Diego/most big cities in California is that even if things go south you can always rent 1-2 rooms out which would get you probably around $1.5-2k which would knock your monthly down to about 2k/month.
Yeah I feel like everyone is so harped in my fiancé. But maybe I didn’t specify that it’s a 3 bedroom house and open to renting.
It’s hard being in California lol
What are you paying for rent now? That will be a good indicator for your mortgage. Also, I wouldn’t count on your fiancé to pay, unless you wait to get married and both names are on the loan.
> I make 80k
> can I afford SFH in San Diego
Sorry, answer is “no”
===
Long answer:
First, 650k is very cheap for SD and there s a reason. If homes next door sell for much higher it just means this one is falling apart. Expect lot of maintenance and it s *very* costly in Cali.
Second, idk what your broker smoking. You ll be paying $3500 in just principal&interest. Another $700 in taxes and some number for insurance. Add $300 (minimum) utilities and you looking at something close to 5k/month before said maintenance.
So your home expenses can reach your *total yearly take-home pay*
If your partner doesn’t pay for one reason or another you ll be be facing foreclosure.
Your “never exceed” home price is about 400k tops.
I’ll go against the grain here. I thought of buying a house back in 2017 and people advised not to. It’s a bad market, you make too little, blah blah. I made 60k at the time living in Boston, btw. I wish I didn’t listen. Yes, I would have had to make sacrifices but those would have been temporary. Two of my friends from college that made about the same as me went ahead and bought a multifamily outside of the city. I know their financials at the time and their background…no daddy’s money for a downpayment. They took a risk while young and it paid off. To this day I don’t own a home and it’s the first time (career wise) that I feel ready. Boston is worse than SD believe it or not…the situation is hopeless. This sounds like a deal of a lifetime OP, and in SAN DIEGO. There’s a reason why stuff is expensive, people wanna live there. That’ll never not be the case. Take it. So what if you and your gf have to break up?? Find a Roomate fam.
I wanted to go against the grain, here, as well because sometimes the sacrifice up front helps to do what’s important…which is get into the market. You gotta get your foot in that dang door at some point; so we purchased even though we were cutting it extremely close.
HOWEVER, OP’s budget is just cutting it way too close. Im sure you know the formulas: best to keep the mortgage at 25-30% take home pay. We weren’t quite there. For us, we knew we’d be cutting it close at 45% of our take home pay. However, we had close to 0 debt. No car payments, Ccs, just a small fraction of a student loan left at 8k. The large items that can break in the home (eg roof, plumping, A/C, water heater, etc. were all new) and it came with prepaid solar. We could factor in the savings of solar over Pg&e, along with the piece of mind about big ticket items not breaking (we not only had a family inspector, but my dad checked everything since he appraised houses and has massive real estate). Even at 45%, we still were stretching it. Big time. I’m glad now that we did it and since, our Apr as gone even lower and my husband doubled his pay. Totally doable.
Now, OP’s situation is completely different. They’d be spending 6O-65% take home pay on just the mortgage, while relying on others to help pay. People are fickle. On top of that, OP has a massive car loan, and who knows what other debts. They live in one of the most expensive cities, meaning groceries, home repairs, etc. will all be incredibly expensive. If we could barely scrape by in a more rural area of CA, it’s not going to work for OP, even if they’re being extremely frugal.
Everyone feels their relationship is 100% solid but, I fear you won't be able to live if anything goes south with the boyfriend.
I don't even see how you get approved for this. That's over 60% DTI (anticipated PITI (assuming it's not just P&I at $3800) and car payment).
Not the best but not awful with a homicide in the garage? for that cheap in SD? You couldn't pay me to live there. Sounds like a bad investment. Is it Barrio Logan?
Born and raised in San Diego. While I don’t approve of the financials. Realistically, this is the only way you’ll be able to own a home. I moved away from San Diego to NYC. I couldn’t even dream of owning a nice condo in my neighborhood for less than 1.2 million. Some people will never understand. My parents have a nice home in a normal quiet suburb in San Diego proper and the homes sell for over a million. If I ever decide to move back and purchase a home there I would most likely be in the same position as you.
No don’t do it. At least when you rent everything is covered. Our AC is 20k to fix. Roof 15k for new one, just needed new refrigerator and washer/drier. Our pool cracked 12k. Crazy! Never ends
The finance is really tight and scary……… if you guys stayed married and he’s on the mortgage with you and you are ambitious at work to keep getting promoted it might not be bad. But that’s best case scenarios.
If either of you get laid off, finding a roommate won’t save you and you won’t be saving enough to have a very long emergency fund.
Personally I always prepare for the worst, but hope for the best
Go for it. Def doable with u and ur fiance's money. People here also don't understand that you will be wasting 3k/month for rent anyways...why not get your own place
I live in a higher cost area than San Diego, I make more than you, and I wouldn’t take on that mortgage. You would definitely be house poor. Don’t you want to put away money for investing, 401K, ROTH, vacations? I would probably double my down payment before I even consider it.
Fellow SoCal person here. I am sensing you have already made up your mind. But here goes..
The monthly payment(PITI)is too high for the income.
Found on Zillow. Schools are bad.. and given the other issues, Will be tough to sell within a short duration. Given the transactions costs, if your life situation changes after a few months, you can’t sell for about 2+ years if you want to not lose equity. It does need some work
The only way it “could” work is if you rent out the other one/two rooms bringing in ~1500-2000. That obviously isn’t an ideal living situation as a couple, but it’s a start. I wouldn’t rely on the fiancés rent income until you’re married.
Overall this has the potential to lower your standard of living since you won’t have much cash left after PITI + car payments, not to mention the added stress and any emergencies that others have mentioned.
I would pass on this one and look for a smaller sfh or a condo in a better location. Good Luck!
No one is mentioning the creep factor of the homicide? I get it- it’s priced right in light of bad events happening there. Did the seller disclose the homicide? Just curious. There’s a house 2 houses up from me that had a double homicide and is on the market for 1.2 mil. It still hasn’t sold. I am wondering if they are disclosing homicide and that’s why?
OP it doesn’t seem like the estimated payment you were told could be including taxes and insurance. A $670k purchase price with 20% down and a 7% interest rate (assuming there since you didn’t mention) by itself is almost $3600.
Have you done the calculation including tax and interest too? If your agent or lender is quoting you numbers without tax and insurance figured in, you might be in for a rude awakening when you see the final payment.
There are tons of mortgage calculators online that will let you put in the purchase price, down payment, interest rate, yearly tax burden and insurance premium and it will give you an estimated payment that should be pretty close to the real deal.
It seems like the OP already made up their mind. Many people already said he cannot afford it but he continue to argue with them (and that’s okay) so I hope it works out
I think you’re more realistically looking at $4.2K - 4.4 a month once you factor in taxes and homeowners insurance. Ignore the comments about PMI. You won’t need it with 20% down.
Is there an HOA? Add that to your expenses, as well.
Let’s think about this for a second. Let’s assume $4.3K all in, which you need to do. Too many people forget about insurance and taxes. That is roughly 71.67% of your income.
Let’s then add your $450 car payment and $100/month insurance. That’s $550. Now, with your home, you have 80.8% of your income gobbled up.
Now, let’s look at utilities. Let’s assume $120 for internet / cable, $150 for electricity, and $40 for water. That’s $310 bucks. Now, all in you have 86% of your income consumed.
This leaves you with $840 / month for groceries, gas, and entertainment. This is roughly $28 / day, or $196 / week. A single person (not married, no kids) should be able to manage that, but you’re not going out with that and you’re living modestly.
Oh, and you’re saving nothing.
With your bf, you’d reduce your mortgage expenses to 47%. A little better, but still very, very bad at your income. You’d then have $78 / day or $546 / week. A bit better. But that’s saving nothing. No money for repairs. Nothing.
I’m not going to criticize you for banking on a boyfriend for rent. But I would seriously, seriously reconsider that. It’s fine if you can afford it on your own so that way if something bad happens you can manage. But you can’t.
If you have a desire to buy, you should be limiting yourself to $1,800 - $2,400 a month in a mortgage. With your down payment, assuming it holds steady at 20%, that’s a $400K home. You can get yourself a small condo or townhome for around that. Not much, but you own it.
You can’t afford this. I’m sorry to say that to you. But you can’t. Frankly, I find it scary you can even get approved for this with your income. Doom incoming.
> My broker estimated my monthly would be $3750 -3850.
I think it'd be quite a bit more with homeowners insurance, property taxes and HOA/POA (if there is one). Pretty sure you're getting quoted for P&I only.
This doesn't account for maintenance/upkeep, improvements, furnishings, utilities, etc.
I think you'd be house poor, tbh, but only you can decide what you're willing to do to make it all work.
It sounds like you’re on tilt due to the frustration of house hunting. Take a step back and assess before committing. Maybe it’s time to leave San Diego?
Unless there's a large secondary income you're not telling us about absolutely not. You will be so house poor it's not even funny. At $109k you should be looking in the $350,000 or less range.
I see what you're saying about it being and investment and what not but that's not a great idea. You have to remember you're on the hook for this house for 30 years... And if you buy it for $650k and something happens in a few years your selling it for the exact same price just because the house is worth more doesn't mean you'll.make more.
You do not want to be house poor. You'd be dumping over 60% of your monthly income into the house. You'll run out of breathing room so fast you'll be miserable. What happens when you want to go on vacation with your fiance and you realize it's going to take you 7 years to save up for it? Or when something happens to your car and you need to buy a new one? Your emergency fund already needs to be $27k... That's money that you have to set aside and not touch unless an actual emergency happens which you won't even have after closing costs... So hopefully you already have everything to furnish this house. Also side note thats just for you it's even more of you factor your fiance into the equation.
Buy the house. Rent a room or two if things get tight. It’s called house hacking and works for thousands of investors. No reason it can’t work for you!
I doubt the sellers will consider an offer under 700k. They are prob giving you a chance to revise your offer higher with a smaller downpayment and bigger mortgage
You BARELY qualify.
I make more than you and would never consider a 600k+ house.
I’m also a loan officer so when I say you barely qualify for the mortgage I’m not kidding lol but I do loans for people that barely qualify alllll the time.
If you’ve got $1500 rent coming in it’s not terrible though. You won’t have much left over at the end of the day but you know that
Edit-I think your broker is wrong on the payment!!!!
Edit 2-don’t do math high on a Saturday morning. He’s prob right about the payment. Still don’t qualify by much. Sorry about that!!!
$700k is too much for a single family home as is with a homicide.
Between the potential fixes and poltergeist, that's a nope.
From what I'm reading, you keep saying well everybody in San Diego is like this. Don't be like everybody else and follow a grain because you feel like you have to. Do what is best for your financial stability.
Friend I am literally in the same boat as you. We make similar money, west coast, partner that could pitch in some money, and I too wish I would have bought a house a few years ago. I literally looked at houses that doubled in value and kick myself. I wish I had the financial sensibility that I did then and I would have totally jumped on a house but such is life.
I feel like how to get ahead is to just continue to save as much as you can and just maybe think that this one just isn't meant for you. That's what I'm doing. I just simply cannot afford a house right now.
Or I could, but I just cannot be house poor. So I choose to wait and save. If the housing market gets better, great. But if it gets worse, then I guess I just have to deal with what is ahead and at least I'll have more money to figure out the craziness.
It's out of reach right now and it sucks.
I think this is bonkers. My husband and I each make what you do and we bought a 700k house. It is doable but we are a little stretched. Totally understand wanting to buy a house but you might want to wait until you have a long-term partner and can go in together. I think you will be pretty screwed without a higher income to deal with the mortgage.
Hi - my partner and I are also in SD… where rent is increasing faster than Elon’s heart rate when he sees the letter X. For a 1 bed 1 bath in North Park/DT/little Italy/ETC, you’re looking at rents ranging from $2500-$4000. In Clairemont, you’re looking at rent from $2000-3000. Regardless, you’re going to be broke. It’s a matter of do you want to be a little more broke and own or do you want to be regular broke and rent? We decided to buy because we know we are going to get priced out of SD very soon and we want to stay here forever. Everyone has been harping on this “bubble burst” for years / over a decade and it’s all noise. Yes, you’ll have to set some $$ aside for maintenance. Yes, it’s a pain, but at least you’ll own. If maintenance is a big factor - buy a condo when the internal things are your responsibility. Prices are only going to keep increasing, especially in San Diego. It might dip a little, but it will* rise again. You can always refinance, but you will not be able to change the purchase price of the home. If your fiancé helps you with the rent, that would help and I hope they are aware that this is your intention. If this falls through, I would go for something lower in price range with the intention of selling in the future to gain equity so that you can afford something larger in the future, that’s just my 3 cents (for inflation). Good luck!!!
Fellow San Diegan here, bought in January of 2021 and it’s hard here. Wife and I gross around 14k and our payment is $3900 with insurance and property tax for our 3/2 in Clairemont. We luckily had a house with a ton of equity that allowed us to buy this one.
I think you will feel a little financial strain with your numbers and as others have said if something major happens it will likely kill your savings. Something will have to give, either what you are putting into savings, retirement or vacations/social costs.
Sigh.
I’d totally leave SD if I didn’t make so much in my profession here. Pay is much lower in any other state for me beside HCOL ones.
Glad you guys got a good one In Claremont, that’s awesome.
Mostly everything sounds good,
if you can live in that house and not think about the homicide.
A baby can increase your expenses significantly
Breakup with fiancé might mean rent a room to another roommate
Out of your 6k take home, how much in cash is remaining after all the expenses currently? You need to have atleast 1-2k remaining after mortgage and all other expenses
The only risk is since it’s San Diego and it’s expensive to do fixes/upgrades to the house. You’ll need a substantial amount of cash if anything comes up
The amount of debt you’re attempting to take on here is flat out not going to make it through underwriting, regardless of what your pre approval may say. The financing is going to fall through, period, and make the choice for you.
I make 150k gross yearly. Wife is currently off work to raise 1 year old. My PMI is 3260$ and idk man I'm on the struggle bus. Not saying I can't pay it, but let me tell you, trips, eating out, grabbing a beer buying sneakers... not possible. Although I did come in with debt, 600$ in minimum monthly. So my situation was different and my fault. We were loose with our money so we needed to change that and now are accepting our new norm in hindsight I wish I would have paid more debt off prior to buying But i was/in aTough position... my wife was ready to pop, houses were not dropping in price, rates skyrocketing... I pulled the trigger on the house that needed no updates... wife gave birth 1 month after moving in...happy we went that route with a higher end of our budget but until wife returns to work, shit bloooooows.
Oh and property taxes!!!! Originally PMI was 3050$... 😳 and I'm certain they will go up next year too.
CHI, IL
Not sure if anyone mentioned this but at 20 years old most mechanical items will start to fail- AC, heat, water heater, kitchen appliances etc. furthermore spending more than 50% of net income on just the mortgage not including taxes and insurance seems like waaay too much leverage. For context have owned over 400 units in California and elsewhere. Good luck!
OP, you absolutely CANNOT afford this house. I'm sorry, but you will end up hating it: regular maintenance, random emergencies, big-ticket repairs, ever-rising taxes are going to be a money pit. You gotta hit pause ASAP.
From someone who grew up in San Diego & now lives in the Bay… you need to fully understand that is not just a monthly payment. They are repairs, taxes, etc, that if you do the math, you will most likely it cut it tight.
I get seeing the perception that everyone is buying…but comparison is the thief of joy & maybe your paycheck🫠
Have you consider looking at smaller cheaper places?
I make your income and even with my husbands income our $2600 mortgage/escrow feels like a stretch at times. I can’t imagine affording this on your salary. You need to move. You can’t afford your city.
Have you even been preapproved? I have a feeling a bank would not even allow you to get a mortgage for that high. At only $80k a year that’s 6.5 times your income on a mortgage most banks will only approve 4x your income(this may also be lower with how high rates have gotten) so in your case around $320k(with your downpayment of $134k that’s around $450k). That’s not even including your car debt. Is your s/o going to be on the mortgage? If not I don’t even see how you would qualify.
Lots of salty people here saying you need to make 200k in order to afford the home. If you are willing to make some changes in your spending to budget accordingly on the house you clearly have decided to buy, go for it.
In my personal opinion, I’d rather be house poor than paying off someone’s mortgage for them with rent.
San Diego is very similar to bay area pricing. Good jobs to be found and moderate climate.
Personally, I feel like most people don’t get HCOL California pricing. One decade in, possibly one recession/downturn in the economy and you’re net-net EXTREMELY positive. The biggest problem with getting into California real estate is the initial down payment and weathering downturns that tend to last 1-3 years. But once the economy recovers, homes are well past their initial purchase price.
If it were me, I’d do it. Since you’re single, with a boyfriend, I’d consider house hacking and get roommates to front the mortgage and pay your principal down sooner. Then in 3-5 years, refinance.
Simply put, no. You can't afford this house. Even with your fiance helping. Side note, you should never buy a house with someone you're not married to. I'd wait another year. With student loan payments starting back up, they will cause the housing market to crash in 6-12 months.
We all want things and I get that..I would love a dodge viper and I can buy one but that dosent mean I should or that it is a good idea.
One issue in the first 6 months can be financially catastrophic in this scenario. That issue does not even have to be related directly to the home at all.
Then you are trying to sell a home with a bad history and if the market takes a turn you may owe more on it then it is worth. Then YOU are the next one selling it for a "deal".
Regardless sometimes people need to learn the hard way. For your sake I hope you don't have to learn at all.
Cheers from Wisconsin
I'm in San Diego and in 2019 I passed on a house offered at 765 now worth 1.2 mill. Buy it, at the beginning it will be tough, but as time passes and you make more $ it will get easier and you will have instant equity.
I’ve been saving since I was 16 and my dream was to own my own property . I want to have something valued to me that will keep me out of trouble if anything bad happens.
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If it helps put anything in perspective, I also live in So Cal not too far from you. I make $140K and bought a $600K home. I have NO debt other than my mortgage - no car loan, CCs or student loans. My payment is $3350/mo and I am struggling. It's not the mortgage that's an issue - maintenance is an absolute killer. I've spent over $15K since last March and I have about $7K additional on my list. This isn't cosmetic BS. It's all functional things that were either neglected or badly DIYd. Yes, I had a "great" inspector. Yes, he missed stuff. I have not been able to do any of the "fun" house stuff like paint, furnish or decorate. If I knew then what I know now, I would have happily continued renting. I really really really don't think you can afford this house. In fact, I know you can't. Please don't count on your fiancés "rent" either. Life is weird and comes at you in unexpected ways. If he chooses to walk out the door one day, what's your game plan there? There's no legal tie unless you're on the mortgage and title together. If you can't afford it alone, you can't afford it.
Can I ask what sort of renos/repairs have popped up? We're locked into our new house soon and I wanna financially and mentally prepare myself for the hardship.
I don't even know where to start, so I'll just say this - I've had to call out an electrician 7 times (and will need him out at least 1 more time) and a plumber 3 times. The biggest miss on the inspectors part was that the house had NO drainage. I found that out when we had an epic winter and couldn't figure out why water was pooling against the foundation. Had to install 3 drains in the front and still need to install 1 more in the back. That whole project will be around 3K total. There are many more, but I'd have to type like dozens of mini projects here, so hopefully you get the picture. The biggest project planned for next year is to replace the HVAC ducts bc the previous owner had the AC unit and furnace replaced but didn't bother with the ducts 🤦🏻♀️ ETA: I have done ZERO voluntary renovations. All of that money went to fix a bunch of shit the previous owner ignored or effed up.
One of our downspouts shot directly into the foundation. It's hard not to laugh. I don't understand how people let things get this way.
Why do the ducts need replacing. We’re they never right? What year is the home?
I'm just gonna pray to the gods my engineering spouse knows what they're doing and that it'll save us money along the way.
I have saved so much by just doing things. It's manageable when it's just $250 for parts and time and not $1500 for someone to come out and do a thing. Have a furnace and 3 AC units that will need swapped at some point. $500/m already going into a "first thing to break fund"
Unless the ducts are damaged and not functioning there isn’t usually a reason to replace them
I’ve read ducts last 10-15 years if they’re the “tin foil” kind. If they’re the hard metal that you see people crawl through in spy movies, they don’t need to be replaced as often. We’re about to replace our ducts when we buy a new HVAC system because they’re 25 years old.
I'm in the same boat. Wife and I bought in May and expected mayhe a few grand worth of things like tree trimming and reparing a fence. Instead tree trimming cost twice as much, and we found thousands worth of hazardous DIY electrical and carpentry in the garage that the inspector missed because it was buried in the old owners crap. We also just had the worst hail in decades so staring down a $4700 deductible. Not to mention minor shit like buying lawn equipment. The property also has a small chicken coop that turned out to be a maintenance nightmare and cost a bunch to tear down and replace. In the end we're 50% over our seller credit we asked for to deal with the issues we knew about and counting, eating up all the money I wanted to spend on voluntary stuff.
We live in Southern California as well but within the first year we spent about $30,000 on repairs. Our AC went out in the middle of summer that was about 15,000. Our pool pump exploded after all the replacements. It was about 5000 we’ve had an electrician out a few separate times for fuses that have blown, or switches that just stopped working, which has been around 2000. Last but not least, we had a gas leak due to some of the piping being older in our garage and we had to replace a good chunk of the gas pipes in the home.
For that much, I hope you got an entirely new AC…
My house is gonna have a secondhand $50 window AC 🤣
Good advice. I'm in the same area and also want to note that this last month our water bill was about 450 and SDGE about the same, which is on the low end for summer. We also just replaced our working but ancient air conditioner and roof for a sum of over 20K. And with a fiance, if kids are on the horizon there's at least another 1K a month for daycare to account for in the budget.
Painting is fun? That is a new one on me.,
Regarding the rent-paying fiancée: even worse than being house poor is being trapped in a domestic situation you can’t afford to leave. Not worth it, especially if they’re not on the mortgage.
What year was your house built? 2003 is recent but lots of things do need fixing at that 20 year mark. AC if it hasn’t died yet, shingled roof, garage doors, etc. Also when did you buy? If it was during good interest rates, then I am even more concerned for OP, which I am already very concerned.
DO NOT MOVE FORWARD!!! You are definitely house poor. Even if you can manage a year or 2, you will sacrifice everything (savings, investment, emergency funds) to make your mortgage payment. This is a classic example of being house poor. To buy a 700k home, I wouldn't move forward unless you are making 200k+. I'm giving you advice from having bought an 850k home in SoCal 2 yrs ago. You can't afford it at your numbers. Abort abort!!!
#Abort Mission
[удалено]
You are asking about our opinions, but I can tell that you’ve already decided and you want to proceed with that house. However, I don’t think you’ll get it since the other offer is $700k. I found it on Zillow, and honestly, it looks like it needs a lot of work. It doesn’t have a dishwasher, that type of fridge usually dies after ~5 years, and only DIY paint job will cost you around 5k in materials. If it’s just you and your fiancée, maybe you don’t even need 2000 sqft unless you’ll decide to have 1-2 children. House hunting in HCOL is tough, so I wish you and your fiancée a good luck! Try to look for something smaller maybe, but renovated.
What this person said. I also found the home on Zillow…Bad area. Awful schools (for you or resale)Abort.
Also found it on Zillow. no
Thank you
Have you talked with a lender? I can't imagine you qualifying for a 540k mortgage on an 80k salary. Your P&I might be $3900 on that loan, but add another $1k a month for prop taxes and insurance. That puts your housing expense at 75% of your gross income (and damn close to equaling your after tax income). And it's very unlikely, on a residential owner occupied mortgage that the lender will accept your partner's rent payment as income to you for qualifying purposes.
I'm already qualified. Im not banking on my partners income for qualification
I doubt it will make it through underwriting even if you somehow got preapproved. No bank would loan someone who makes 80k that much money.
Is this some sort of special first time buyer program? A grant of some sort, or a private loan? Because [FNME Guidelines](https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-6-Liability-Assessment/1032992131/B3-6-02-Debt-to-Income-Ratios-05-04-2022.htm) do not allow DTI that high for conventional mortgages. So if it were a conventional mortgage, there’s no way an underwriter would write this loan (regardless of what any broker pre-qualified you for). Either the pre-qual is a mistake, or there’s some key info we’re missing.
That’s way too much house for your income. Your mortgage and car payment combined take up 66% of your take home. You’d have $1700 a month left over for absolutely everything else in life.
Agreed. Mortgage should be 25-33% of income. Unexpected expenses will pop up without fail. Maintaining a house is expensive, mortgage aside.
Not sure why OP has even posted - from all replies, they seem determined to get this property so only seem to be looking for reassurance that it’s the right decision (even if the math says it isn’t!)
I wouldn’t say that. I feel like I add additional comments to emphasize what I’m saying. To be honest ppl on here are talking about buying $250K properties … A majority of ppl on here feel like they don’t relate to what I mean with my city. But I appreciate all this feedback, I’m just trying to add my point to make sure I’m understanding
thats because based on your income $250k is the reasonable amount to take out a mortgage on. your comments show you dont have a firm grasp on the basics and your mentally blocked to San Diego and what everyone else in San Diego is doing. your setting yourself up for a painful reality check and likely contributing to the next 2008 crash
I guess what so tough for me if knowing it’s possible to buy in the city I was born and raised in because other ppl I know do it… Yet whenever I have a plan or get close I get scared from all the negative comments. Then I watch all the ppl I know build crazy equity and I’ve built nothing. I feel that opportunities pass me because ppl scare me out of it and other ppl Take the risk and it works out each time . I really get so confused what I do wrong
I don't think you should see it as "negative" commentary, it's more like genuine concern & personal anecdotes based on really crappy experiences. Think a lot of people here just want to help out really. I feel it's possible that, that ship to gain huge equity & have things just work out has left the dock for those of us in Southern California... For now anyway. I feel your pain... My husband & I only barely missed the mark ourselves.
Trust your instincts. People here have no idea what their talking about. The numbers you put down are totally manageable. I live in San Diego and it was tough but biggest regret was not buying more house. Was stayed under 600 but wish I got somthing in the 700 or 800 I would be more concerned about potentially ghost honestly
I wish I posted this in the San Diego subreddit instead. So much good feedback on here but hard to know which ones are actually applicable. How come you wish you bought bigger? What’s your story please.
Bought a small duplex in Linda vista for $560 in February of 2020. Really great places were 800k My mortgage is now $2,500 and get $1,100 in income from one of the units but the current house is tiny 750 sf. I have remodeled it but still need to buy another house eventually can make this neighborhood or house work. Will probably hold forever and cash flow but there were some really awesome places that were around 750k that looking back on were screaming deals in comparison to prices today.
Exactly. Well if you ever need another tenant hit me up haha I work on convoy🤣
How do you make 6K net a month if you’re salary is 80K?? That’s 72K NET a year, you only pay 10% in taxes??
The finances make zero sense
My W2 last year was just slightly under 80K. I make $60 an hour and work 35 hours a week. My paychecks range $2900-3100 biweekly. So yeah I take 6K a month. Is that not accurate to people?
That’s $109,200 a year gross. Wut
I make 80k and wouldnt even be comfortable with a $220k mortgage (no one else would be paying rent tho). My goodness I can’t even imagine a 650 mortgage
I would absolutely NOT do this OP, but you do you.
How are you getting 6k/month on a 80k salary? Are you setting aside money for taxes? Retirement accounts?
i only work 35 hours a week at $60 an hour
Well then you don’t make 80k. 1820*60=109,200
650k in San Diego maybe you shouldn’t post it on here in case it attracts more bids lol that sounds like a dream deal
Lol they already have the offers in line. Right!
Brother, the taxes are going to go up tremendously as soon as you buy the house they will do an assesment on it. You will NOT be paying the same taxes as the current owner. Don’t do it to yourself man look for something closer to the 300-400 range maybe a condo etc.
You absolutely cannot afford that with or without your fiancé. Nope. You’d be paying over 60 percent of your income to the house. That’s disastrous. I’m from the area. Look in Oceanside and get used to the commute.
Over 60% of income to housing is wild, and that doesn't even include renovations. I spend 30% including heating, waste management, water and plot rent and I think even that is too much.
Lol you think houses are cheaper in Oceanside? How disillusioned are you?
I would rather live in San Diego than Oceanside. so for this reason alone I know for a fact that Oceanside will be cheaper
This is actually just fact. There are many surrounding areas cheaper than San Diego. I’m not accepting your insults either.
When you start to get to Temecula it starts to get slightly cheaper. Other than that, not really.
I just want to add as someone who lives in Temecula, it’s no longer cheaper. It’s comparable to SD in terms of rent and not worth the commute anymore.
No, homes are cheaper in Oceanside than San Diego by quite a lot. Rent is significantly cheaper in Oceanside. Done chatting about this as well.
I make $80k and my wife makes $70k and we will be splitting a $2100 mortgage and I’m feeling tight lol. Life throws a lot of curveballs but at the end of the day you need to write down every expense you have and see if it’s feasible. Wish you the best!!!
Don't do it. You will be house poor, and then stuck with a house with a more difficult resell circumstance given the homicide should you get into a situation in which you need to sell.
How are your paychecks 3k if you make 80k? Is that before taxes?
I guess I went off my W2 from last year. I got a $5 raise in June. So the last three months my checks are $3000 after all tax deductions
Hi I live in San Diego and I would be what people consider house poor. Like everyone says it’s what you’re comfortable with. I am born and raised in SD and I don’t want to go live anywhere else. We make sacrifices to do that. I got a really great deal for a house my mom helped me get so I couldn’t pass on it. Bought said house for what she paid for home in 2016. House is almost valued at close to 1 mil now according to comps and the real estate websites. It was just too good of a deal to pass and I’m comfortable with what we are paying now. We do have a little extra to play with after all bills and no car payments. It’s all about what you’re willing to pay and be comfortable with. I don’t think you can live in SD and not be house poor unless you make really good money according to everyone. Renting is just as expensive as owning monthly here.
this! I honestly feel like nobody is getting what I am saying. I've been here my entire life and dont want to leave. Its either pay $3K for an apartment, or $3700 to own something and be the minority. I feel this house is a good deal too because I'm buying it under what its worth due to what happpened. But everyone still says its dumb. I feel like in 10 yrs this house would be worth a lot. Also its a huge home, even if I rent it I'd be okay
I think you can make sacrifices as long as you’re 100% aware of what ALL the costs are. do you know that the $3700 is only your principal and interest payment? You need to add like $900/month for homeowners insurance and property tax and about $500/month squirreled away to save for necessary repairs down the road.
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OP has rosy glasses on right now. I agree with everything you say. People keep using the city they live in and ignore math. This is worst case of house poor I have seen in a while.
It's also a brutal, highly competitive job market now too so it may not be as easy to find a new job if laid off.
I also live in San Diego. If you can afford then do it! Even if you have to struggle for a little bit. The price of this SFH is the same as a condo right now. No Mello Roos or HOA? Your taxes and mortgage will be set while rent goes up every year. If you really want out, sell, you’ll likely make a good amount of equity by then
I also live in SD and saw the listing for the house you’re going for. Honestly, being house poor in SD is fairly standard unless you are in tech etc and make high 6 figures. If you feel you have enough to cushion for emergencies and house upkeep, then go for it. Your money will grow quickly as equity in SD versus in your landlord’s pocket. If anything, you and your partner can house hack and rent out a room from the beginning so that you can hedge up your finances a bit.
I’d say you’re going to be closer to $4k a month considering the escrow for insurance and taxes. And being pre-approved for an amount is not always what a bank will lend you. That’s determined once there’s a contract and financials are sent in. I would guess you’re very close to or over max for the loan to qualify for this ratio. If it doesn’t then the loan can’t be packaged and sold so typically it won’t go through. Again this would be determined during the loan processing. Sounds like you might actually make slightly more than the $80k but in reality you bring home $6k and $4k will be the mortgage. Fiancé paying is definitely good. My wife and I make $155k in a low cost area and have a $200k loan and it’s comfortable but not rolling in it. I’d never touch a loan that big. However, if you think it’ll go through and you’re very comfortable the rent from your fiancé won’t go away it’s a good price on a big house in a very expensive market. But make sure you’re still putting away for retirement and saving for home fixes which could be tens of thousands a year. High rent is way cheaper than a mortgage. It’s not equivalent considering fixes, insurance and taxes will all go up annually.
i think it helps in situations like this to play the “what if?” game, so here goes… • what if… fiancé moves in, relationship goes south, now ex-fiancé moves out. can you afford it on your own? • what if… fiancé moves in but you lose your job and it takes 9 months to land another one. can you afford this scenario? • what if… fiancée decides not to move in at all. what’s the plan? • what if… your $25k for upgrades doesn’t come close to the $150,000 you need bec you discover mold, water damage, mice infestation, or a cracked foundation. can you afford this? these aren’t really blind “what if” questions bec all of these things, and many many more, have actually happened to me. so what-if it my reddit friend, and then make the decision.
Thank you
My man…no. I make more than you and my mortgage is $2600 with no other debts and I would not dare to take any more on. My house was $625k when rates were half of what they are now so there’s no way on gods green earth your mortgage is $2300 or whatever you’re saying it will be minus your SOs portion. And I know, y’all won’t break up and it’ll be fine. I thought that too until my ex and I broke up 2 months into living in the house. I was struggling and had to bust my ass to get a new job and double my salary.
I mean what what else are you doing with that 4K a month that’s so drastic? I don’t think I need that much a month to live off of
Max out 401k, IRA, emergency fund, general savings, vacations, enjoying life… it’s not about having enough to live off of. New roofs are $30k, new AC units are $8k, having a tree root tunnel into your sewer line is also thousands of dollars. These are when not if expenses that you need to consider on top of just principle and interest payments. You may be more tolerant to risk than the rest of us and then in that case do what you feel you can handle, but it is a terrible feeling to wake up on the day after closing and realize you’re at the financial mercy of a house you suddenly don’t love as much as you thought you did. And you have another 10,949 days left on the payments.
Absolutely. Thank you
Please delete, just don't. A key employee of mine did what youbarenolanning. Ignorance leads one astray. House poor is real. My employee stopped maintenance because he couldn't afford it, had to sell the house, at a loss as the maintenance issues and he went bankrupt. Get a small condo with an outside yard. Get into the game at a lower entry point. 2008 happened because peiple owed on houses they could not afford. Insurance is very expensive now, as are utilities for a home. Please go more modest to start. 2019 is long gone and your buying power is much less.
Hey I see all these comments, but here is one from a fellow San Diegan. My wife and I purchased a home for 780k and our take home is around 10k a month. Our mortgage is about half our take home pay and we live comfortably, even with our two kids. Housing is always going to be a larger part of our expenses here, its fine and we are happy.
Double your income first
Even with your $5 raise factored in, it sounds like you are putting little to nothing into savings/retirement/investments. Do you typically owe money for taxes in April? As far as buying the home for “less than it’s worth,” consider that prices are high right now. So a discount on an inflated price…is it really a discount? I’m just trying to say that the home value is extremely subjective, so get that part out of your head completely. Instead, would you be happy there and have you actually worked out the finances? It sounds like you have not.
Curious on an update if OP u/Jasipen does end up going through with this RemindMe! 2 months
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Lol yes sir
I live in San Diego. We bought a townhome for 635k and our mortgage with everything including hoa is 5200. I wish I would stay renting. I low key have a bit of resentment towards my wife and we fight a lot because it stresses me out sometimes. I would wait a bit. It’s just two of us with a dog in a 3 bedroom which she refuses to rent out because she doesn’t like having people that is not family over. Also cleaning a 1 bd apartment is cake cleaning a 3 bd place is a lot more time consuming.
I make 160k and take home 7k/month and my loan is 313k at 6.75%, monthly payments are $2700. My spouse pays $1000 of that. It still feels tight considering student loans and expenses leave me with ~$2k of play money per month. Makes me a little nervous considering a deck, driveway, roof, furnace, and septic are all possibly needing replacement in the coming years. You’ll feel super stretched if any big ticket item needs attention
You can afford this house if you own your vehicle(s) outright and are so handy that you'll never need to hire a contractor, plus have enough job security that you'll be able to refinance later with no problems, better credit and higher income. With renting you don't have to worry about maintenance and right now it's cheaper to rent than to buy and own. If you make it, ten years away you'll have some fun and fantastic stories about things you had to do to get by and you'll be amazingly happy you did it but it's also pretty risky. ETA: your bank will likely put you at or above the 50% mark for DTI ratio and deny the loan but I could be wrong. They calculate it off of gross income but you'll find this home to be extremely difficult to keep and maintain, even with the Fiancé rent it won't be super comfortable. Crazy to think two incomes at six figures isn't enough to live anywhere but that's the breakdown.
Buying a 650k house on an 80k income is insane. You need to make a HCOL salary if you want to live in HCOL. You're realistically going to want to be making 250k+/year to comfortably live in a house like that.
Bought new construction home in SD and moved in late last year. A month after I moved in, got my first supplemental tax bill for a few thousands dollars. These are things most realtors or mortgage lenders don’t tell ya. It’s not only making the mortgage, it’s everything that comes with owning a home. Based on your income, you will be out of that home in 2 years or less…
If you are buying the house solo, then you need to be able to afford it with out charging your fiancé “rent”. Can you pay for it solo, probably. But have you prepared a budget? Your utility costs will likely be in the $700-$1000 range (water, sewer, trash, internet, electricity, gas, cable, pest, etc) Home repairs - budget 1% of home value per year. Had you proposed this differently, such as my fiancé and I are purchasing this home, and our combined income is X, then my thoughts would likely be that you could afford it. But in keeping the assets & debt separate, and relying solely on your info, then this sounds like over extending yourself.
I would not feel comfortable getting that expensive of a home and I make quite a bit more than you. Though I know it’s the California market so for all I know that’s as cheap as you can get something out there.
2000 sq ft at that price IS cheap out here. Lots of house poor folks
I am also in SD and am in escrow for a higher price. It will be a struggle, I think this won't be easy for you. Keep in mind that you have not locked in the rate. I feel like rates are slightly above 7 at the moment unless you pay points. I am estimating your payments to be around $4,300 a month at 7%. You need to run an excel with all your monthly estimates including food, utilities, fun money, gas, car insurance, etc. Feel free to dm me if you want more information since I am also in a similar situation sort of.
You make $6k per month. You want to spend at a max $3850 on housing. $450 car payment. So maybe $2150 after housing. What about 401k, IRA, investments, savings, home maintenance, health insurance, etc.? That’s a bit too aggressive for my taste just to say I have a house.
Yeah and my partner would pay some rent too and I can get a roommate. It’s a 3 bedroom Home with attached garage . But I hear you
If you cannot afford it alone, don’t do it. You’d really be squeezing your budget buying this house, and if your S/O walks out, or loses their job, or if you cannot find a roommate, or if *they* walk out or lose their job… and just the fact that you’re factoring a roommate into this decision… Do whatever you see fit for yourself, but I encourage you to really give this some thought.
Good lord, DO NOT do this
Do not do it. I'm a financial advisor, but even separate from that, my husband and I bought our home in 2021 when rates were at an all time low. We put down 25% and mortgaged $700k, close to what you are looking at. However, our rate was 3%. Our mortgage (P+I) came out to $2,900/mo, but with insurance, property taxes, and HOA, our all in per month is around $4,100. Our combined income is higher than yours in present day so it doesn't feel like much now, but back in 2021 we were making around half of what we are today. That number is still around 3x your gross salary. I wouldn't fathom going any higher, and would have never pulled the trigger if we weren't already in a good place. We have no other debt but even then, like everyone here is saying, there are so many unexpected costs that come with owning a home. Everything is now YOUR responsibility instead of a landlord's. That's everything from a leak, changing out lightbulbs, yard maintenance, fixes needed in the walls or flooring, garage door issues, front door issues, window issues, air filter, appliances, it doesn't end. When you buy a home, you want to make sure you can also enjoy your life living in it. It's more stress than it's worth to stretch yourself thin. Another (better) opportunity will come along, promise. Edit: by "better opportunity", I'm not necessarily referring to better rates or lower prices. I'm more implying that you are buying a home out of your budget and you will find something more suitable. I understand the high COL (I live in the Bay Area), but talking yourself into a situation where you buy a home above your means and justifying it by telling yourself it's what everyone does in the city is doing yourself a disservice.
Thank you for this. As a financial advisor what’s the best thing to do with the money if I’m not gunna put it into the house ? Just a high yield account?
Whatever advice you can give is appreciated of course, I know I’m not a client.
I see the house on Zillow . Cosmetic issues like paint which is no problem. House is on a slab, make sure no foundation issues (more expensive to fix plumbing issues) and condition on the tile roof, which should be good since built 20 years ago. Stucco siding is a plus, usually last for almost ever compared to wood siding. Houses around that area 850k+ it’s a good deal even if there was a murder scene lol. Your going to live broke and uncomfortable for a while, and if you manage through for a couple years it will be worth it.
Thank you for looking at it and giving your thoughts
If I made that salary, I would be VERY nervous with that monthly payment. Are you saving for retirement? I would prioritize maxing out 401k before house ownership (unless you will be inheriting lots of $ for retirement). I also wouldn’t rely on a non-spouse for monthly mortgage assistance. But if you plan on renting a room or two out if they leave the picture, that could make it more affordable.
I see. Idk if I can max out retirement ($21K a year) and keep saving for a home though. I feel like I’d never catch up then. I’d have my same savings account number while houses keep rising. I feel like I should be joining instead of continuously chasing the market up . Does that make sense ?
Found the house. Abort right away!!!! You will be living in a constant money pit.
The bones of the house seem good. May I ask what you see that’s so bad ?
Please keep us posted!
I’m currently house poor. When we bought the house, my partner was employed, actually got a big pay raise, and then quit because his new work sucked. He’s been unable to find a job for a year and a half now… I’m lucky I can afford the whole mortgage and utilities with my own salary. Even so, I had to dig into our emergency funds, about $10k so far. I still have a chunk I won’t touch for “fun” renovations because I need to make sure it’s available for potential roof/plumbing issues. Right now I’m at the point where I don’t have to dig into our savings (got a cost of living raise, finished paying off one car early, and second car should by paid off by the end of the year). Might even upgrade our toilet to celebrate! Hahahahaha First of all, being house poor sucks. But it’s not the worst that can happen to you. These are very serious topics you need to be honest with yourself. - How stable is your job? How stable is your relationship with your fiancé and how stable is their job? - Will you be able to afford the mortgage on just your own salary? Does your job have room to grow? For example, do you get step raises/cost of living adjustments, etc. How confident are you that you are competitive to get a promotion or raise, either at your work or at another one? - How is your (both of you) lifestyle? Can you cut back on some stuff to help continue building up emergency funds? Are you and your partner on the same page regarding savings, budgeting, and lifestyle choices? I think at $25k you’re like one, one and a half major home repair emergency away from trouble. And this is just emergency, not maintenance and upkeep of your current stuff. - How healthy are you guys? Obviously you can’t predict what will happen but you need to maintain your health. Go to your checkups and dental appointments so that you don’t end up having a $3k dental bill all of a sudden. How good is your health insurance? It’s a sad fact that lots of people are one medical emergency from financial ruin. - How about family? Are you guys planning on children, do you have parents you might need to take care of or help support? Do you have a network that can help you if something were to happen? As someone living this life right now, it’s tough but doable. I have a lot of job security (fingers crossed) and I have a habit of saving where I can. And I’ve had a lot of luck (no major medical problem or house repair). It’s allowed us to weather this unexpected hardship relatively ok. I’m not super handy, but I’m working on it. I like being handy and I’m hoping that some of the smaller maintenance I do will help prevent future disaster. Would I trade all this hardship for not having a house? No way lol Just go in with your eyes wide open and know ahead of time what you’ll need to give up. I’m in a HCOL area and San Diego is as well. The traditional rules don’t apply (house payment being 1/3 of monthly pay?! Whaaat?!). If you want to talk some more feel free to PM me. Sorry about the long comment.
wow thank you so much for that insight. I feel like only people from HCOL areas slightly understand
For God's sake, I live in SoCal, too but where you live is not a good justification for going house poor. If you don't make enough, you don't make enough. Don't make excuse for making TERRIBLE financial decisions like you are about to.
My big concern is how well you can manage on one salary. You say you bring in $6k a month and estimated monthly is ~$4k. Check whether that’s PITI (as much as you can considering it’s an estimate lol). Between food, utilities, gas, internet, cellphone, car insurance, car maintenance and service calls, maybe pets… that leftover $2k gets eaten up fast. Just be realistic about what your situation is and whether you can afford it to go awry.
This is the San Diego market, don’t take advice from mid westerners here unless you want to leave. I’d move forward with that
Everyone who lives in metro cities- Do it! Everyone who lives in rural areas- avoid at all cost, this is bad. Unfortunately, I am in the same boat, could’ve bought pre-pandemic but hesitated. Prices were absurd, everyone paying $100k+ above asking. Then the pandemic hit, who knew what the economy was going to be and the possibility of layoffs. Post pandemic would be the right time!!! As we all know, that was a bad gamble. Similar income, similar down payment— looking at $600-750k properties. It’s just the way it is out here. Los Angeles County for me— and no, moving to another state is not an option.
100% relate to you. We are limited with options
If I were you, yes I’d buy it. I think some people are shocked because they don’t understand California prices. Many people in CA pay a higher percentage of their salary on their rent and mortgage in comparison to other states. I saw one comment saying that if they made 200k they would feel ok buying a 700k house. Lol, the people I know who are single and make 200k alone are usually looking for houses much more expensive than that. That’s just how it is here. Yes, you are counting on your fiancé to pay rent, but the great thing about San Diego/most big cities in California is that even if things go south you can always rent 1-2 rooms out which would get you probably around $1.5-2k which would knock your monthly down to about 2k/month.
Yeah I feel like everyone is so harped in my fiancé. But maybe I didn’t specify that it’s a 3 bedroom house and open to renting. It’s hard being in California lol
What are you paying for rent now? That will be a good indicator for your mortgage. Also, I wouldn’t count on your fiancé to pay, unless you wait to get married and both names are on the loan.
$2800 for a two bedroom apartment
> I make 80k > can I afford SFH in San Diego Sorry, answer is “no” === Long answer: First, 650k is very cheap for SD and there s a reason. If homes next door sell for much higher it just means this one is falling apart. Expect lot of maintenance and it s *very* costly in Cali. Second, idk what your broker smoking. You ll be paying $3500 in just principal&interest. Another $700 in taxes and some number for insurance. Add $300 (minimum) utilities and you looking at something close to 5k/month before said maintenance. So your home expenses can reach your *total yearly take-home pay* If your partner doesn’t pay for one reason or another you ll be be facing foreclosure. Your “never exceed” home price is about 400k tops.
I’ll go against the grain here. I thought of buying a house back in 2017 and people advised not to. It’s a bad market, you make too little, blah blah. I made 60k at the time living in Boston, btw. I wish I didn’t listen. Yes, I would have had to make sacrifices but those would have been temporary. Two of my friends from college that made about the same as me went ahead and bought a multifamily outside of the city. I know their financials at the time and their background…no daddy’s money for a downpayment. They took a risk while young and it paid off. To this day I don’t own a home and it’s the first time (career wise) that I feel ready. Boston is worse than SD believe it or not…the situation is hopeless. This sounds like a deal of a lifetime OP, and in SAN DIEGO. There’s a reason why stuff is expensive, people wanna live there. That’ll never not be the case. Take it. So what if you and your gf have to break up?? Find a Roomate fam.
Thank you
I wanted to go against the grain, here, as well because sometimes the sacrifice up front helps to do what’s important…which is get into the market. You gotta get your foot in that dang door at some point; so we purchased even though we were cutting it extremely close. HOWEVER, OP’s budget is just cutting it way too close. Im sure you know the formulas: best to keep the mortgage at 25-30% take home pay. We weren’t quite there. For us, we knew we’d be cutting it close at 45% of our take home pay. However, we had close to 0 debt. No car payments, Ccs, just a small fraction of a student loan left at 8k. The large items that can break in the home (eg roof, plumping, A/C, water heater, etc. were all new) and it came with prepaid solar. We could factor in the savings of solar over Pg&e, along with the piece of mind about big ticket items not breaking (we not only had a family inspector, but my dad checked everything since he appraised houses and has massive real estate). Even at 45%, we still were stretching it. Big time. I’m glad now that we did it and since, our Apr as gone even lower and my husband doubled his pay. Totally doable. Now, OP’s situation is completely different. They’d be spending 6O-65% take home pay on just the mortgage, while relying on others to help pay. People are fickle. On top of that, OP has a massive car loan, and who knows what other debts. They live in one of the most expensive cities, meaning groceries, home repairs, etc. will all be incredibly expensive. If we could barely scrape by in a more rural area of CA, it’s not going to work for OP, even if they’re being extremely frugal.
Everyone feels their relationship is 100% solid but, I fear you won't be able to live if anything goes south with the boyfriend. I don't even see how you get approved for this. That's over 60% DTI (anticipated PITI (assuming it's not just P&I at $3800) and car payment).
Not the best but not awful with a homicide in the garage? for that cheap in SD? You couldn't pay me to live there. Sounds like a bad investment. Is it Barrio Logan?
Near Lincoln highschool. It’s not a bad neighborhood to me I use to work there
Born and raised in San Diego. While I don’t approve of the financials. Realistically, this is the only way you’ll be able to own a home. I moved away from San Diego to NYC. I couldn’t even dream of owning a nice condo in my neighborhood for less than 1.2 million. Some people will never understand. My parents have a nice home in a normal quiet suburb in San Diego proper and the homes sell for over a million. If I ever decide to move back and purchase a home there I would most likely be in the same position as you.
No don’t do it. At least when you rent everything is covered. Our AC is 20k to fix. Roof 15k for new one, just needed new refrigerator and washer/drier. Our pool cracked 12k. Crazy! Never ends
The finance is really tight and scary……… if you guys stayed married and he’s on the mortgage with you and you are ambitious at work to keep getting promoted it might not be bad. But that’s best case scenarios. If either of you get laid off, finding a roommate won’t save you and you won’t be saving enough to have a very long emergency fund. Personally I always prepare for the worst, but hope for the best
Go for it! You can go on Murder House Flips and they’ll fix it up for you!
Hahahahaha
Go for it. Def doable with u and ur fiance's money. People here also don't understand that you will be wasting 3k/month for rent anyways...why not get your own place
I live in a higher cost area than San Diego, I make more than you, and I wouldn’t take on that mortgage. You would definitely be house poor. Don’t you want to put away money for investing, 401K, ROTH, vacations? I would probably double my down payment before I even consider it.
Thanks
Fellow SoCal person here. I am sensing you have already made up your mind. But here goes.. The monthly payment(PITI)is too high for the income. Found on Zillow. Schools are bad.. and given the other issues, Will be tough to sell within a short duration. Given the transactions costs, if your life situation changes after a few months, you can’t sell for about 2+ years if you want to not lose equity. It does need some work The only way it “could” work is if you rent out the other one/two rooms bringing in ~1500-2000. That obviously isn’t an ideal living situation as a couple, but it’s a start. I wouldn’t rely on the fiancés rent income until you’re married. Overall this has the potential to lower your standard of living since you won’t have much cash left after PITI + car payments, not to mention the added stress and any emergencies that others have mentioned. I would pass on this one and look for a smaller sfh or a condo in a better location. Good Luck!
Thank you
No one is mentioning the creep factor of the homicide? I get it- it’s priced right in light of bad events happening there. Did the seller disclose the homicide? Just curious. There’s a house 2 houses up from me that had a double homicide and is on the market for 1.2 mil. It still hasn’t sold. I am wondering if they are disclosing homicide and that’s why?
It’s San Diego. Ppl would buy a home here if it was a triple homicide
OP it doesn’t seem like the estimated payment you were told could be including taxes and insurance. A $670k purchase price with 20% down and a 7% interest rate (assuming there since you didn’t mention) by itself is almost $3600. Have you done the calculation including tax and interest too? If your agent or lender is quoting you numbers without tax and insurance figured in, you might be in for a rude awakening when you see the final payment. There are tons of mortgage calculators online that will let you put in the purchase price, down payment, interest rate, yearly tax burden and insurance premium and it will give you an estimated payment that should be pretty close to the real deal.
Thank you
It seems like the OP already made up their mind. Many people already said he cannot afford it but he continue to argue with them (and that’s okay) so I hope it works out
I think you’re more realistically looking at $4.2K - 4.4 a month once you factor in taxes and homeowners insurance. Ignore the comments about PMI. You won’t need it with 20% down. Is there an HOA? Add that to your expenses, as well. Let’s think about this for a second. Let’s assume $4.3K all in, which you need to do. Too many people forget about insurance and taxes. That is roughly 71.67% of your income. Let’s then add your $450 car payment and $100/month insurance. That’s $550. Now, with your home, you have 80.8% of your income gobbled up. Now, let’s look at utilities. Let’s assume $120 for internet / cable, $150 for electricity, and $40 for water. That’s $310 bucks. Now, all in you have 86% of your income consumed. This leaves you with $840 / month for groceries, gas, and entertainment. This is roughly $28 / day, or $196 / week. A single person (not married, no kids) should be able to manage that, but you’re not going out with that and you’re living modestly. Oh, and you’re saving nothing. With your bf, you’d reduce your mortgage expenses to 47%. A little better, but still very, very bad at your income. You’d then have $78 / day or $546 / week. A bit better. But that’s saving nothing. No money for repairs. Nothing. I’m not going to criticize you for banking on a boyfriend for rent. But I would seriously, seriously reconsider that. It’s fine if you can afford it on your own so that way if something bad happens you can manage. But you can’t. If you have a desire to buy, you should be limiting yourself to $1,800 - $2,400 a month in a mortgage. With your down payment, assuming it holds steady at 20%, that’s a $400K home. You can get yourself a small condo or townhome for around that. Not much, but you own it. You can’t afford this. I’m sorry to say that to you. But you can’t. Frankly, I find it scary you can even get approved for this with your income. Doom incoming.
> My broker estimated my monthly would be $3750 -3850. I think it'd be quite a bit more with homeowners insurance, property taxes and HOA/POA (if there is one). Pretty sure you're getting quoted for P&I only. This doesn't account for maintenance/upkeep, improvements, furnishings, utilities, etc. I think you'd be house poor, tbh, but only you can decide what you're willing to do to make it all work.
Nope. You can’t afford this. Don’t be house poor and miserable.
It sounds like you’re on tilt due to the frustration of house hunting. Take a step back and assess before committing. Maybe it’s time to leave San Diego?
Unless there's a large secondary income you're not telling us about absolutely not. You will be so house poor it's not even funny. At $109k you should be looking in the $350,000 or less range. I see what you're saying about it being and investment and what not but that's not a great idea. You have to remember you're on the hook for this house for 30 years... And if you buy it for $650k and something happens in a few years your selling it for the exact same price just because the house is worth more doesn't mean you'll.make more. You do not want to be house poor. You'd be dumping over 60% of your monthly income into the house. You'll run out of breathing room so fast you'll be miserable. What happens when you want to go on vacation with your fiance and you realize it's going to take you 7 years to save up for it? Or when something happens to your car and you need to buy a new one? Your emergency fund already needs to be $27k... That's money that you have to set aside and not touch unless an actual emergency happens which you won't even have after closing costs... So hopefully you already have everything to furnish this house. Also side note thats just for you it's even more of you factor your fiance into the equation.
Thank you
Just don't. At these rates you'll be eating Ramen.
How do you net that at 109k? Do you contribute to retirement?
Buy the house. Rent a room or two if things get tight. It’s called house hacking and works for thousands of investors. No reason it can’t work for you!
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What the heck are y’all doing with all your extra money a month. Sheesh , Where do you live ?
Definitely not. You’ll be house poor
If you are solo this is a no go. If your fiancé is for real, then this is a deal.
I make 98k my wife makes like 80k and my 390k home is wayyyy more money that I wanted to spend. I couldn’t imagine a 600k house on just her paycheck…
Where do you live lol..
Honestly this might be your only chance to buy in San Diego. I’d do it.
I doubt the sellers will consider an offer under 700k. They are prob giving you a chance to revise your offer higher with a smaller downpayment and bigger mortgage
You BARELY qualify. I make more than you and would never consider a 600k+ house. I’m also a loan officer so when I say you barely qualify for the mortgage I’m not kidding lol but I do loans for people that barely qualify alllll the time. If you’ve got $1500 rent coming in it’s not terrible though. You won’t have much left over at the end of the day but you know that Edit-I think your broker is wrong on the payment!!!! Edit 2-don’t do math high on a Saturday morning. He’s prob right about the payment. Still don’t qualify by much. Sorry about that!!!
Thank you
$700k is too much for a single family home as is with a homicide. Between the potential fixes and poltergeist, that's a nope. From what I'm reading, you keep saying well everybody in San Diego is like this. Don't be like everybody else and follow a grain because you feel like you have to. Do what is best for your financial stability.
How do I ever get ahead then
Friend I am literally in the same boat as you. We make similar money, west coast, partner that could pitch in some money, and I too wish I would have bought a house a few years ago. I literally looked at houses that doubled in value and kick myself. I wish I had the financial sensibility that I did then and I would have totally jumped on a house but such is life. I feel like how to get ahead is to just continue to save as much as you can and just maybe think that this one just isn't meant for you. That's what I'm doing. I just simply cannot afford a house right now. Or I could, but I just cannot be house poor. So I choose to wait and save. If the housing market gets better, great. But if it gets worse, then I guess I just have to deal with what is ahead and at least I'll have more money to figure out the craziness. It's out of reach right now and it sucks.
Thank you. What are your thoughts in buying a condo or townhome for yourself ?
I think this is bonkers. My husband and I each make what you do and we bought a 700k house. It is doable but we are a little stretched. Totally understand wanting to buy a house but you might want to wait until you have a long-term partner and can go in together. I think you will be pretty screwed without a higher income to deal with the mortgage.
Hi - my partner and I are also in SD… where rent is increasing faster than Elon’s heart rate when he sees the letter X. For a 1 bed 1 bath in North Park/DT/little Italy/ETC, you’re looking at rents ranging from $2500-$4000. In Clairemont, you’re looking at rent from $2000-3000. Regardless, you’re going to be broke. It’s a matter of do you want to be a little more broke and own or do you want to be regular broke and rent? We decided to buy because we know we are going to get priced out of SD very soon and we want to stay here forever. Everyone has been harping on this “bubble burst” for years / over a decade and it’s all noise. Yes, you’ll have to set some $$ aside for maintenance. Yes, it’s a pain, but at least you’ll own. If maintenance is a big factor - buy a condo when the internal things are your responsibility. Prices are only going to keep increasing, especially in San Diego. It might dip a little, but it will* rise again. You can always refinance, but you will not be able to change the purchase price of the home. If your fiancé helps you with the rent, that would help and I hope they are aware that this is your intention. If this falls through, I would go for something lower in price range with the intention of selling in the future to gain equity so that you can afford something larger in the future, that’s just my 3 cents (for inflation). Good luck!!!
Thank you
Fellow San Diegan here, bought in January of 2021 and it’s hard here. Wife and I gross around 14k and our payment is $3900 with insurance and property tax for our 3/2 in Clairemont. We luckily had a house with a ton of equity that allowed us to buy this one. I think you will feel a little financial strain with your numbers and as others have said if something major happens it will likely kill your savings. Something will have to give, either what you are putting into savings, retirement or vacations/social costs.
Sigh. I’d totally leave SD if I didn’t make so much in my profession here. Pay is much lower in any other state for me beside HCOL ones. Glad you guys got a good one In Claremont, that’s awesome.
Try using this [home affordability calculator for FHA loans](https://fhalenders.com/affordability-calculator/). It will let you know if you are close.
Mostly everything sounds good, if you can live in that house and not think about the homicide. A baby can increase your expenses significantly Breakup with fiancé might mean rent a room to another roommate Out of your 6k take home, how much in cash is remaining after all the expenses currently? You need to have atleast 1-2k remaining after mortgage and all other expenses The only risk is since it’s San Diego and it’s expensive to do fixes/upgrades to the house. You’ll need a substantial amount of cash if anything comes up
True. Thank you
The amount of debt you’re attempting to take on here is flat out not going to make it through underwriting, regardless of what your pre approval may say. The financing is going to fall through, period, and make the choice for you.
I make 150k gross yearly. Wife is currently off work to raise 1 year old. My PMI is 3260$ and idk man I'm on the struggle bus. Not saying I can't pay it, but let me tell you, trips, eating out, grabbing a beer buying sneakers... not possible. Although I did come in with debt, 600$ in minimum monthly. So my situation was different and my fault. We were loose with our money so we needed to change that and now are accepting our new norm in hindsight I wish I would have paid more debt off prior to buying But i was/in aTough position... my wife was ready to pop, houses were not dropping in price, rates skyrocketing... I pulled the trigger on the house that needed no updates... wife gave birth 1 month after moving in...happy we went that route with a higher end of our budget but until wife returns to work, shit bloooooows. Oh and property taxes!!!! Originally PMI was 3050$... 😳 and I'm certain they will go up next year too. CHI, IL
Crazy that property tax can change on us like that. Sheesh. Where’d you buy?
Not sure if anyone mentioned this but at 20 years old most mechanical items will start to fail- AC, heat, water heater, kitchen appliances etc. furthermore spending more than 50% of net income on just the mortgage not including taxes and insurance seems like waaay too much leverage. For context have owned over 400 units in California and elsewhere. Good luck!
Let me get a unit!
OP, you absolutely CANNOT afford this house. I'm sorry, but you will end up hating it: regular maintenance, random emergencies, big-ticket repairs, ever-rising taxes are going to be a money pit. You gotta hit pause ASAP.
From someone who grew up in San Diego & now lives in the Bay… you need to fully understand that is not just a monthly payment. They are repairs, taxes, etc, that if you do the math, you will most likely it cut it tight. I get seeing the perception that everyone is buying…but comparison is the thief of joy & maybe your paycheck🫠 Have you consider looking at smaller cheaper places?
I make your income and even with my husbands income our $2600 mortgage/escrow feels like a stretch at times. I can’t imagine affording this on your salary. You need to move. You can’t afford your city.
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hey, you gotta get in where you fit in. Hopefully the ghosts are open to paying some of my rent.
Have you even been preapproved? I have a feeling a bank would not even allow you to get a mortgage for that high. At only $80k a year that’s 6.5 times your income on a mortgage most banks will only approve 4x your income(this may also be lower with how high rates have gotten) so in your case around $320k(with your downpayment of $134k that’s around $450k). That’s not even including your car debt. Is your s/o going to be on the mortgage? If not I don’t even see how you would qualify.
Holy cow. We make 180k and I was cringing at my 2700 mortgage payment at 345k. You make 1/3 and want to double that?!?
Lots of salty people here saying you need to make 200k in order to afford the home. If you are willing to make some changes in your spending to budget accordingly on the house you clearly have decided to buy, go for it. In my personal opinion, I’d rather be house poor than paying off someone’s mortgage for them with rent.
San Diego is very similar to bay area pricing. Good jobs to be found and moderate climate. Personally, I feel like most people don’t get HCOL California pricing. One decade in, possibly one recession/downturn in the economy and you’re net-net EXTREMELY positive. The biggest problem with getting into California real estate is the initial down payment and weathering downturns that tend to last 1-3 years. But once the economy recovers, homes are well past their initial purchase price. If it were me, I’d do it. Since you’re single, with a boyfriend, I’d consider house hacking and get roommates to front the mortgage and pay your principal down sooner. Then in 3-5 years, refinance.
Simply put, no. You can't afford this house. Even with your fiance helping. Side note, you should never buy a house with someone you're not married to. I'd wait another year. With student loan payments starting back up, they will cause the housing market to crash in 6-12 months.
I’m buying this house by myself
Basic rule on income to loan amount is 24% you would need about $200k in income to qualify for that mortgage.
This isn’t true for HCOL areas. 30%-38% is more realistic. But I do agree with others. OP can’t afford this.
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That doesn’t even get you a mobile home in San Diego. Congrats tho
We all want things and I get that..I would love a dodge viper and I can buy one but that dosent mean I should or that it is a good idea. One issue in the first 6 months can be financially catastrophic in this scenario. That issue does not even have to be related directly to the home at all. Then you are trying to sell a home with a bad history and if the market takes a turn you may owe more on it then it is worth. Then YOU are the next one selling it for a "deal". Regardless sometimes people need to learn the hard way. For your sake I hope you don't have to learn at all. Cheers from Wisconsin
I'm in San Diego and in 2019 I passed on a house offered at 765 now worth 1.2 mill. Buy it, at the beginning it will be tough, but as time passes and you make more $ it will get easier and you will have instant equity.
I hear you. I regret all the homes I passed up in 2019 because I was scared. Still scared tho This post made me realize I’m broker than broke
Wait until you marry your fiance and then go buy a home together with combined incomes
I’ve been saving since I was 16 and my dream was to own my own property . I want to have something valued to me that will keep me out of trouble if anything bad happens.