It depends on utilities, local property taxes, and several other factors. But figure that your mortgage is going to be about $15,000 a month for the next 30 years. Add onto that your homeowner's insurance; which we'll say you get a good deal on at $750 a month. On top of that we look at your local tax...if you go by my local tax rate of 3.8 mills, then you'd pay about $950 a month in property taxes.
If you assume utilities at...$400 (elec), $250 (gas), $200 (water/sewage), $250 (phone/net/etc.) then you start looking at a number like this...
$16,100 a month, just to maintain the house; not including groceries, vehicle payments, etc.
A good way to decide on your home is to ensure that your total house payment is not more than 1/3 of your total income. So to maintain a 3 million dollar home, you should have an income of $585,000 a year.
So if you don't make $600,000 a year (to account for taxes), I wouldn't advise buying a 3 million dollar home, personally. :)
But they say that you can go as high as 2/3 your total income in housing, although it's not suggestible. If you follow this ideology, though, then you can afford the 3 million dollar home on an income of about $293,000 ($300,000 before taxes, at least).
There area lot of careers out there that pay over $300,000 a year, especially before bonuses (board directors for Fortune 500 companies, doctors, investment brokerage partners, high-profile lawyers, etc.). Consider that the the minimum wage for the NFL is about $550,000 a year.
PSECU's mortgage calculator helped a lot to run the mortgage numbers...
· 7 years ago