anyone know any word on this condo?
I am looking at buying. Currently finishing up my masters degree. Starting work at a big four accounting firm at the end of the year. Parents will pay for 20% down for the condo. I will need to cover the mortgage payments once they begin in 2017.
Let's say I get a unit for $700,000, how much would I have to take in/year pre tax by move in (2017) to be able to afford the unit?
Would a $80k pre tax salary be enough?
You have a masters and work at a big four accounting firm, and yet ask an internet forum how much of a mortgage you can afford? Seriously?
deranged, I think you will find that most lenders today will not approve a loan amount for much more than 5x's your gross annual income (household income), and that is if you have excellent credit...for sure you should get pre-approved before you make any offers..
Thanks for all your help everyone. Let me explain my assumptions and estimations so that you can better help me.
I'm trying to gauge the affordability of a 2 bedroom unit at the moment.
-I'm assuming my salary in 2017 to be ~80k. ~90k in 2018. ~100k in 2019. (based on 12% raises which is standard for CAs)
-I don't think getting a mortgage would be a problem. I can get the loan under my parents' names and pay them mortgage.
-I was thinking of getting a 2bdrm and renting one of the rooms out until I can afford the place myself/ get married.
$3,000 --> A 500k loan at 5% interest amortized over 25 years would cost 3k a month in mortgage payments.
$500 --> Condo fees would be approx $500 assuming 1000sq ft at $0.50.
$500 --> Food/entertainment would be approx $500 a month.
($1,000) --> I was hoping I can rent the extra room out for $1000/month.
$3,000 --> That would cost me net $3,000 a month to live.
$3000 x 12 months = 36k / year.
If I made 80k a year and was taxed at an avg rate of 40% I would have $48k after tax income.
12k for savings/ other costs.
I didnt count property tax because I'm not sure how it works for condos -1% on fair market value of the unit?
Do you think my approximations are reasonable?
How are you guys budgeting for your condo living? What type of costs do you pay that I haven't anticipated?Again thanks for all your help. This forum is great!