Hello, looking for advice as a first-time home buyer in the Katy/Fulshear market. Myself 31 and my wife 27 are looking to buy a $600 to $700k house. We currently make a combined income $240,000. We have consistent jobs with an expected peak to be in the low $300K range in the next 5 years. Our monthly take home is right at $15,000. Both jobs cover 100% of our health insurance. Life outside of housing monthly costs about $3500 to include all bills, 1 car note $800, gas, groceries, insurance and all needs.
Growing up both of our families never had a mortgage over $2000. However, we are looking at a number between $5,000 and $5,500 a month in the current market as a first rime buyer. It feels ridiculous. We would still be saving 4 to 5 thousand dollars a month for long term planning. Is anyone in this market as a first-time buyer in a similar spot. Do you feel house poor?
https://www.reddit.com/r/personalfinance/comments/1squ9sq/housing_cost_katy_texas/
Posted by Mediocre_Finger3919
5 Comments
Why so much house? Do you have kids? I have family from Katy and a lot of friends – you can easily get a nice house at 400-500K especially for a first timer. I would buy less house and pile more money into investing.
That seems high. How much are you putting down? Does that include taxes & insurance?
If it feels uncomfortable you should buy a cheaper house.
My wife and I make twice what you guys make with a mortgage half that monthly cost and it still feels like too much.
> Our monthly take home is right at $15,000
How much are you saving for retirement right now? Your take home suggests you aren’t contributing a lot to 401k or equivalent retirement plans. If you aren’t contributing at least 15% right now, I would make that adjustment and then decide how much you feel comfortable spending on a house.
Also, any plans to have kids? More than one? If so, I would think about how your spending will change over the next five years if you end up having two or more children close in age. You might be looking at $3k+ per month in childcare costs, plus higher health insurance premiums, higher grocery bills, and other child-related expenses.
I’d probably look for something that’s less than that (600-700k), but that’s just one person’s opinion. Not sure if the market there will allow for that.
When my wife and I purchased our first home, we bought well below our ceiling to avoid being in a tight spot financially (house poor), and chose something a bit modest.
Not sure what you’re looking at in terms of houses, but you’re likely to incur all kinds of additional costs related to moving and maintaining the home, especially if it’s a large piece of property.
For example, commercial lawn equipment and a way to haul that, if it’s a large lot.
We ultimately spent tens of thousands of dollars beyond what it cost for us to close on the house during that first year of home ownership, so it’s just something to keep in mind.
Without knowing more, I assume you’re looking at really nice homes. It looks like the median sale prices are, on average, a couple hundred thousand dollars below that in Katy, TX. Despite growing up in Texas, I’ve never been to Katy, so admittedly I’m not familiar with the area.
My wife and I have comparable income and things can definitely get tight if we’re not careful in how we manage our finances.
I think you guys should consider purchasing a house that you can afford on one income. Because with that situation if someone is laid off or loses their job you guys will be broke.