How much do you think is a reasonable mortgage for a typical IT person. Bearing in mind that IT is generally well paid and there is a large flexible contracting market.
I'm currently permie. Although have been contracting in the past and imagine I will in the future. A good contract rate for me would 500 a day but could be as low as 250.
I'm 29. Currently as a permie I'm on 57.5 basic, 6.5k car allowance and random bonuses of around 5k. So my take home is 3.2k plus a bit of bonus. My job isn't exactly secure and I anticipate moving jobs, having periods without work and periods on high income over my career. I'd also like the option not to work primarily for money (I suppose retire early or just move out of IT) while I have plenty of life left.
My girlfriend is on about 45k with 2.5k take home. She works for the NHS so is reasonably secure.
Between us we are taking home 5.7k. Renting at the moment.
Things I can see in the future would be moving to a single salary due to having a family or periods of unemployment.
Now a 300k mortgage would be about 2k a year. Which, even if things go pear shaped should be manageable. Might have to switch to interest only, take in a lodger, live on rainy day funds for a bit, work in bar if no well paid work.
But is 300k not ambitious enough? We've got 50k deposit and, looking to buy in the next two years or so as amrket settles, that could rise to 100k +.
The kind of house I would really like to live in starts at 500k going up to a million+.
If prices drop 20% then the currently 500k + houses are starting to come within the price range. For instance, I could get a mortgage of 450k (3 grand repayments), 50k deposit and then other savings to cover stamp duty, fees and rainy day fund.
But is that being over-ambitious? Is it crazy to commit to 3k a month repayments.
So what do you guys think? When you were buying a house did you stretch as much as possible or keep it more manageable? In the flexible, but well paid IT world, is it sensible to take on very large commitments.
I'm currently permie. Although have been contracting in the past and imagine I will in the future. A good contract rate for me would 500 a day but could be as low as 250.
I'm 29. Currently as a permie I'm on 57.5 basic, 6.5k car allowance and random bonuses of around 5k. So my take home is 3.2k plus a bit of bonus. My job isn't exactly secure and I anticipate moving jobs, having periods without work and periods on high income over my career. I'd also like the option not to work primarily for money (I suppose retire early or just move out of IT) while I have plenty of life left.
My girlfriend is on about 45k with 2.5k take home. She works for the NHS so is reasonably secure.
Between us we are taking home 5.7k. Renting at the moment.
Things I can see in the future would be moving to a single salary due to having a family or periods of unemployment.
Now a 300k mortgage would be about 2k a year. Which, even if things go pear shaped should be manageable. Might have to switch to interest only, take in a lodger, live on rainy day funds for a bit, work in bar if no well paid work.
But is 300k not ambitious enough? We've got 50k deposit and, looking to buy in the next two years or so as amrket settles, that could rise to 100k +.
The kind of house I would really like to live in starts at 500k going up to a million+.
If prices drop 20% then the currently 500k + houses are starting to come within the price range. For instance, I could get a mortgage of 450k (3 grand repayments), 50k deposit and then other savings to cover stamp duty, fees and rainy day fund.
But is that being over-ambitious? Is it crazy to commit to 3k a month repayments.
So what do you guys think? When you were buying a house did you stretch as much as possible or keep it more manageable? In the flexible, but well paid IT world, is it sensible to take on very large commitments.
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