Home Ownership and Wealth Building

["That One"]

Rich Dad Poor Dad = best starting point for anyone who wants to build wealth (IMO).

[Kirk Lazarus]

Anyone have any idea on how much it is reasonable to spend on a 1BR apt assuming biglaw salary? I'm having trouble b/c everything seems so expensive.

[hooloovoo]

Anyone have any idea on how much it is reasonable to spend on a 1BR apt assuming biglaw salary? I'm having trouble b/c everything seems so expensive.

depends to a large degree on how much you're carrying in terms of student loans, no?

[Kirk Lazarus]

Anyone have any idea on how much it is reasonable to spend on a 1BR apt assuming biglaw salary? I'm having trouble b/c everything seems so expensive.

depends to a large degree on how much you're carrying in terms of student loans, no?

About 100k.

[hooloovoo]

About 100k.

so that puts your monthly payment at what, around $1200?  i think that banks consider 35% of income to be a reasonable amount to be spending on debt service.  so assuming $12k/month or so, that's $4200/month on debt service.  $1200 going to student loan payments means $3000/month for a mortgage.

i think that's what's reasonable, anyway.

[Dr. Balsenschaft]

About 100k.

so that puts your monthly payment at what, around $1200?  i think that banks consider 35% of income to be a reasonable amount to be spending on debt service.  so assuming $12k/month or so, that's $4200/month on debt service.  $1200 going to student loan payments means $3000/month for a mortgage.

i think that's what's reasonable, anyway.

Banks typically think 35% of gross monthly income is a reasonable amount to be spending on your housing payment (principal, interest, taxes, and insurance).  Banks typically think 50% of gross monthly income is a reasonably amount to be spending on total debt.  These figures will vary depending on credit scores and the type of loan (we got a FHA loan on just my wife's income while I was still in school this past year and the total housing payment was over 50% of her monthly income.)

[hooloovoo]

About 100k.

so that puts your monthly payment at what, around $1200?  i think that banks consider 35% of income to be a reasonable amount to be spending on debt service.  so assuming $12k/month or so, that's $4200/month on debt service.  $1200 going to student loan payments means $3000/month for a mortgage.

i think that's what's reasonable, anyway.

Banks typically think 35% of gross monthly income is a reasonable amount to be spending on your housing payment (principal, interest, taxes, and insurance).  Banks typically think 50% of gross monthly income is a reasonably amount to be spending on total debt.  These figures will vary depending on credit scores and the type of loan (we got a FHA loan on just my wife's income while I was still in school this past year and the total housing payment was over 50% of her monthly income.)

i was trying to go with a fairly conservative number.

another thing to think about, especially ITE, is how much mortgage you'd be able to afford if you moved out of biglaw.

[A.]

Anyone have any idea on how much it is reasonable to spend on a 1BR apt assuming biglaw salary? I'm having trouble b/c everything seems so expensive.

I probably wouldn't pay more than $2500 or so.

[Speakonit]

Anyone have any idea on how much it is reasonable to spend on a 1BR apt assuming biglaw salary? I'm having trouble b/c everything seems so expensive.

Are you trying to get some experience, pay back the man, and get out or do you envision staying at biglaw long term?  If the former, keep it under 1800, if the latter does it matter?

[Tonyworks4u]

As a returning law student who dropped out in 1999 I believe home ownership is key to living the American dream.  In 2007 I attained my real estate brokers license and it has been invaluable in terms of investing and acquiring wealth.  I decided to return to law school after realizing the 100s of thousands of dollars I was allowing to escape my grasp by needing attorneys to close my deals for me.