What’s the rule of thumb for housing % of income? Maintenance cost expectations?
I know rules of thumb for this have shifted but what HHI would you be comfortable with a 1.5mil, 1mil, 750k, 500k mortgage? Hoping to buy in 10 years. Currently plan on having 3 children over those years before getting the house.
I have heard of 2 rules of thumb for home buying.
1)do not allow purchase price to exceed 3x gross HHI
2)do not allow total housing cost to exceed 50% HHI
We like to browse for fun right now and see what we like and what we don’t like. Trying to think of what size of home to be realistic about. Also unsure what to budget for maintenance to try to calculate the 2nd rule of thumb above.
Another rule of thumb for kids I have heard is to budget or expect 1200/child for groceries/childcare/sports/school etc once they are school age. Is this conservative or too low in today’s economy