Can a person making 250 to 300K a year afford a 500K to 1.5M house?

Question

It's in West nyack,NY or Bronxville,NY

Answer 1

Yes, but before you buy, know some facts.

If this is the "high end" in your area, then you may have some trouble selling the place.

Unless you are buying  a unique property (lake front, downtown location, historic district), many times houses like that are on the market for a year or longer...because others that are also are shopping in that same price range can afford to be picky, picky, picky.

Answer 2

Rule of Thumb---spend no more than 1/4 of your income

DON'T overextend yourself. . . That is how so many people got into trouble and are losing their homes

All costs of housing--mortgage, real estate taxes, insurance, PMI, utilities has to be LESS than 1/3 of income or you are definitely overextended

Better to buy less house, put down 20% and avoid PMI, than to overextend yourself

Housing prices are down, have been declining, and estimates are 1-10 years for recovery. . . .buying a home is NOT the sure road to riches that it was during boom years. . .even when prices stabilize or start making modest gains, the boom of the last decade is unlikely to be repeated

Answer 3

The 500K, definitely. The 1.5M, maybe not so much.

Answer 4

your house payment should be no more than 25% of your income and make sure that the rates are not adjustable so as to put you in a position that you can no longer afford the payments

Answer 5

yah