Affording your "dream house" as a Pharmacist?

[PharmBoy90]

I know this is a silly thread, but it's just something I'm kind of curious about. I know for a fact that I love the Pharmacy field, and it seems like something I could see myself doing until I retire. I know that Pharmacists make a good money, and of course, I want to be financially stable.

However, there is a house near where I live that I have always dreamed of owning one day. It's a few towns over, but I've always told myself growing up "one day I'm going to make a lot of money, and I'll be able to buy that house". I know, I know, it sounds stupid. The house sold a couple of years ago for about $950,000. Do you think it's possible for a Pharmacist to afford living in a $1 million house?

Of course, I'm going to become a Pharmacist whether I can buy $1 million houses or not, but it's just something I've always dreamed about and I'd be curious to hear some opinions from you guys considering the pay scale of Pharmacists in today's world.

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[Momus]

Yes, a single buyer, you can afford it if you save enough down payment (~50%) and make the number works for you. I think it's stupid to buy $1M house... If it's an investment or rental property that can generate $10,000/month, it will be different matter. But if it's a house to live in...

If you have 2 income household with no debt (wife makes $125k ==> $250k/year), you can buy $1M house with 30 year fixed. You will probably pay around $5k/month, or about 1/2 your net incomes. This is of course, pushing the limit...

 

[npage148]

being house poor is a terrible thing. Luckily my dream houses only run in the 350k range

 

[Momus]

being house poor is a terrible thing. Luckily my dream houses only run in the 350k range

You mean cash poor? He wants to buy expensive house, hence the term "house rich but cash poor"

I don't like being cash poor also. You can't eat your house during retirement. You can downsize but who likes to downsize after living large?

 

[npage148]

You mean cash poor? He wants to buy expensive house, hence the term "house rich but cash poor"

I don't like being cash poor also. You can't eat your house during retirement. You can downsize but who likes to downsize after living large?

different phrases but yes. Stuck in a situation where you are spending the most you can afford on your house and any change in income will push you over the edge.

Plus if you NEED to downsize, you better hope you sell your house at the price you need to sell it at

 

[All4MyDaughter]

house poor = you own the McMansion (well, you pay the McMortgage), but you're sitting on the floor eating off a cardboard box because you can't afford to furnish it

 

[KARM12]

Why do you need a million dollar house? That is just a waste. Buy a smaller place and pimp it out.

 

[Its Z]

Do thE math. 20% down you will jot qualify for the mortgage. Even if you do you are looking at $3800 mortgage and $1000 property tax another $1000 to $2000 expense. As a single pharmacist you cannot afford it. You need around $300,000 per year household income to afford it....even then you really cant afford it.

Marry rich.

 

[Doctor M]

Do thE math. 20% down you will jot qualify for the mortgage. Even if you do you are looking at $3800 mortgage and $1000 property tax another $1000 to $2000 expense. As a single pharmacist you cannot afford it. You need around $300,000 per year household income to afford it....even then you really cant afford it.

Marry rich.

yeah, pretty much what he said. at 300k, maybe a house in the 600k range. 1 million seems to be a stretch.

 

[Momus]

yeah, pretty much what he said. at 300k, maybe a house in the 600k range. 1 million seems to be a stretch.

Ya, when interest rate was 6% 1:2 income to debt ratio might be reasonable... but that does not seem to be the case at 3.5% mortgage rate. Their monthly payment becomes so cheap. People can afford buying a little pricier home now.

$1M with 20% down at 3.5%, the monthly payment is $3500 + 1500 (tax+expenses). If you make $300k/year you can afford this. Net income $180k/12 months = $15k/month. You should be able to afford $1M house.

 

[NaOH]

being house poor is a terrible thing. Luckily my dream houses only run in the 350k range

I'm glad my taste for expensive things only extends to automobiles. $70k sports car? Yeah, I'll probably be able to swing that eventually.







Although I'm not sure how I'd feel driving a car that costs almost double the house I grew up in, honestly.

 

[Just Because]

I'm glad my taste for expensive things only extends to automobiles. $70k sports car? Yeah, I'll probably be able to swing that eventually.







Although I'm not sure how I'd feel driving a car that costs almost double the house I grew up in, honestly.

what kind of car?

 

[NaOH]

what kind of car?

Currently? Either a Mercedes C63 AMG or a Cadillac CTS-V wagon.

Enjoy your 10 mpg, you say? Yes, I certainly will. 😎

 

[Its Z]

Ya, when interest rate was 6% 1:2 income to debt ratio might be reasonable... but that does not seem to be the case at 3.5% mortgage rate. Their monthly payment becomes so cheap. People can afford buying a little pricier home now.

$1M with 20% down at 3.5%, the monthly payment is $3500 + 1500 (tax+expenses). If you make $300k/year you can afford this. Net income $180k/12 months = $15k/month. You should be able to afford $1M house.

Not sure you can get 3. 5% on jumbo loan. And property tax of 1% + insurance...

 

[joetrisman]

I'm glad my taste for expensive things only extends to automobiles. $70k sports car? Yeah, I'll probably be able to swing that eventually.







Although I'm not sure how I'd feel driving a car that costs almost double the house I grew up in, honestly.

👍

Car poor, yes. House poor, never. Bring on the GT-R

 

[Momus]

Not sure you can get 3. 5% on jumbo loan. And property tax of 1% + insurance...

I am sure if your take home is $15k/month ($300k/year), $1.5k/month more in payment is not going to break you. Stop nickle and diming!

 

[NaOH]

👍

Car poor, yes. House poor, never. Bring on the GT-R

I'm forcing my best friend to buy one of these within the next few years. Being one half of a dual-professional income household means letting your friends live their dreams vicariously through you.

 

[Brock Landers]

Yes, a single buyer, you can afford it if you save enough down payment (~50%) and make the number works for you. I think it's stupid to buy $1M house... If it's an investment or rental property that can generate $10,000/month, it will be different matter. But if it's a house to live in...

If you have 2 income household with no debt (wife makes $125k ==> $250k/year), you can buy $1M house with 30 year fixed. You will probably pay around $5k/month, or about 1/2 your net incomes. This is of course, pushing the limit...

Not sure how you can have this conversation without mentioning location. For those of us in the fed govt (DC area), $1M is not a lot of money for a house. In my neighborhood the median sales price is $750k. While $1M is a huge sum of money, I wouldn't say it is stupid if the alternative is renting all of your life or commuting roundtrip for 3 hours a day because you live too far away.

 

[Doctor M]

Ya, when interest rate was 6% 1:2 income to debt ratio might be reasonable... but that does not seem to be the case at 3.5% mortgage rate. Their monthly payment becomes so cheap. People can afford buying a little pricier home now.

$1M with 20% down at 3.5%, the monthly payment is $3500 + 1500 (tax+expenses). If you make $300k/year you can afford this. Net income $180k/12 months = $15k/month. You should be able to afford $1M house.

15k-5k = 10k
10k-other expenses = ???

Im sure you could afford it at 300k, but i dont see myself stretching myself to that amount for a house. How large is the house? Electricity bill? so many other expenses i can only imagine. I guess if it is your dream home and your income is stable, go for it. I would have to have a much higher income to feel comfortable spending 1 million on a home.

 

[Doctor M]

I'm forcing my best friend to buy one of these within the next few years. Being one half of a dual-professional income household means letting your friends live their dreams vicariously through you.

Im looking at one of these:

http://www.autoblog.com/2011/11/15/2013-ford-shelby-gt500-delivers-650-hp-and-200-mph-straight-from/

60k GTR was in my mind. i just dont see spending that amount of money on a car ever again!!!!! But maybe i will pull the trigger one of these days!

 

[504poboy]

man....are u serious????....u must be crazy.....you still have maintenance issues to deal with....property taxes, homeowners association if you have one, electricity bill to deal with during the summer and winter depending on what part of the country..also in order to get a loan you have to have homeowners insurance and flood insurance if you are in a flood zone....landscaping for a million dollar house would be ridiculous....mowing your own lawn after awhile is a pain in the ass....if it has a pool, u gotta maintain that....you will definitely not be able to have a social life

 

[Rx MPLS]

Not sure how you can have this conversation without mentioning location. For those of us in the fed govt (DC area), $1M is not a lot of money for a house. In my neighborhood the median sales price is $750k. While $1M is a huge sum of money, I wouldn't say it is stupid if the alternative is renting all of your life or commuting roundtrip for 3 hours a day because you live too far away.

...one of many reasons I've never understood how people can afford to live out there when the payscale doesn't seem to be any better than anywhere else.

 

[PharmGeek]

👍

Car poor, yes. House poor, never. Bring on the GT-R

Just don't end up getting a Nissan Z. That's just a wannabe Porsche, which explains why it is much less.

 

[Doctor M]

Just don't end up getting a Nissan Z. That's just a wannabe Porsche, which explains why it is much less.

Agreed, i had a Z once and it was horrible

 

[Its Z]

I too had a 350z in 2003. Sold it in 6 months. Then got a 911.

 

[Doctor M]

I too had a 350z in 2003. Sold it in 6 months. Then got a 911.

911 what do you think of the new GT500?

 

[Momus]

911 what do you think of the new GT500?

Poor man Ferrari... performance horse with 0 luxury. For daily driver, get teh Godzilla instead 😉

 

[Temperature101]

Buying a mil dollars house in even a 400k salary is crazy. I think all mortgage term should be 15-year. And people should put at least 20% down when purchasing a house. Eliminate all these 30-year mortgages that make people think they can buy big houses, which make these banksters become richer.

 

[WVUPharm2007]

At 3.75% APR, they won't be making that much off of you. That's barely more than inflation.

That said, buying a $500k house is stupid. Buying a $1 mil house is an entirely different brand of stupid.

 

[BuffaloPills]

At 3.75% APR, they won't be making that much off of you. That's barely more than inflation.

That said, buying a $500k house is stupid. Buying a $1 mil house is an entirely different brand of stupid.

hahaha, made my day

 

[Doctor M]

At 3.75% APR, they won't be making that much off of you. That's barely more than inflation.

That said, buying a $500k house is stupid. Buying a $1 mil house is an entirely different brand of stupid.

👍👍 agreed

 

[Momus]

At 3.75% APR, they won't be making that much off of you. That's barely more than inflation.

That said, buying a $500k house is stupid. Buying a $1 mil house is an entirely different brand of stupid.

I can't get less than $500k stand alone house in SD. Condo at least $300k for a 2 bedroom here. Well, I could but my commute time will be ~45 mins...

If I want to live in a nice neighborhood with a school district rating of 10, it's $800k at minimum for a tract house or $1M for a decent house 3 bedrooms with a bit of privacy.

If I live in a cheap state, I can just buy a house outright for $300k cash now, and get the a peace of mind that I will have shelter for the rest of my life.

My employer owns me, I can't move out of CA. Thus, why I still rent for $600/month...

 

[farmadiazepine]

If you can afford it and have a good plan, buying a 1 million dollar house is not a dumb idea, in my opinion. If you can provide $300 - $400k for the down payment, then all you need is one RPh paycheck every month to make the rest of the payments on the house until it's paid off. With interest rates being the lowest they ever are now, and also with house prices having finally bottomed out and every so slightly starting to rebound again, now is a great time to buy if you can afford it.

When you pay off a certain amount of house, you build equity, which can be used to buy more properties or start a business or put your kids through college. The good idea of buying a more expense house (again if you can afford it) if you are a first time buyer is the interest rate, because then you use all that equity to buy your other properties, but all those properties in which you need the loan for will be at higher rates.

In my opinion, its not a dumb idea. It's dumb if you want a million dollar house but can't afford it, though.

 

[Temperature101]

I can't get less than $500k stand alone house in SD. Condo at least $300k for a 2 bedroom here. Well, I could but my commute time will be ~45 mins...

If I want to live in a nice neighborhood with a school district rating of 10, it's $800k at minimum for a tract house or $1M for a decent house 3 bedrooms with a bit of privacy.

If I live in a cheap state, I can just buy a house outright for $300k cash now, and get the a peace of mind that I will have shelter for the rest of my life.

My employer owns me, I can't move out of CA. Thus, why I still rent for $600/month...

How does your employer own you? I think it should not be very difficult to get a job in most US states as an experienced pharmacist...That San Diego housing market is outrageous...You can find a nice house (4BR, 2 1/2 Baths and 2-car garage) in south FL for 250K in an A rated school district. In fact, I just bought one last year for 150K (3BR, 2BA, 2 Car-garage) in a nice neighborhood.

 

[Momus]

How does your employer own you?

Papers filed this year 2012 under EB3 category - Gov processing priority date ~September 8, 2006 (at least 6 years wait)

That San Diego housing market is outrageous...You can find a nice house (4BR, 2 1/2 Baths and 2-car garage) in south FL for 250K in an A rated school district. In fact, I just bought one last year for 150K (3BR, 2BA, 2 Car-garage) in a nice neighborhood.

San Diego median list price $639k $364/sq.ft. If you want nice home, expect to fork $200-400k more. Average household median income in the good school districts (Carmel Valley, La Jolla, Poway, Carlsbad) is ~$100-150k. I bet FL median income does not even come close...

 

[Temperature101]

Papers filed this year 2012 under EB3 category - Gov processing priority date ~September 8, 2006 (at least 6 years wait)

San Diego median list price $639k $364/sq.ft. If you want nice home, expect to fork $200-400k more. Average household median income in the good school districts (Carmel Valley, La Jolla, Poway, Carlsbad) is ~$100-150k. I bet FL median income does not even come close...

The average household median income in FL is 56K, but where I just bought my home is a little over 86K... I wonder how people can afford these expensive houses in these are of SD if they are not some kind of executive or businessmen.

 

[Pharmacy Kid]

The average household median income in FL is 56K, but where I just bought my home is a little over 86K... I wonder how people can afford these expensive houses in these are of SD if they are not some kind of executive or businessmen.

Mortgage. Sometimes too big of a mortgage.

 

[jawnly211]

im looking to buy in orange county, CA

they have ridiculous HOA and mello roos taxes

plus the property tax

you are looking at an additional $1500 alone in taxes a month

with pharmacist salary you would be safe with a 400-500k house in OC

that could get u a 1500 sq ft 3 br 3 bath townhouse/condo

you would be pushing it to search for anything over 600k

but if ur spouse works, then its doable...but nothing above 800k

 

[Elle928]

Not sure how you can have this conversation without mentioning location. For those of us in the fed govt (DC area), $1M is not a lot of money for a house. In my neighborhood the median sales price is $750k. While $1M is a huge sum of money, I wouldn't say it is stupid if the alternative is renting all of your life or commuting roundtrip for 3 hours a day because you live too far away.

This.
There are plenty of people in the DC area that live in average size single family houses costing between $500,000- 1M, with "government salaries" ( typically under 100,000). And this is the norm so its definitely do-able.

 

[Temperature101]

im looking to buy in orange county, CA

they have ridiculous HOA and mello roos taxes

plus the property tax

you are looking at an additional $1500 alone in taxes a month

with pharmacist salary you would be safe with a 400-500k house in OC

that could get u a 1500 sq ft 3 br 3 bath townhouse/condo

you would be pushing it to search for anything over 600k

but if ur spouse works, then its doable...but nothing above 800k

500k for a condo/townhouse! That is crazy...You can buy a 3500-4000 sq ft 5br 3 bath 3 car garage in miami with that kind of money...It seems like even a pharmacist cant afford a decent house in these major cities in CA.

 

[browneyes021]

This.
There are plenty of people in the DC area that live in average size single family houses costing between $500,000- 1M, with "government salaries" ( typically under 100,000). And this is the norm so its definitely do-able.

How would they be able to afford something that expensive on a salary under 100K? What kind of monthly mortgage would they be looking at with a 500K house on that salary?

 

[Momus]

500k for a condo/townhouse! That is crazy...You can buy a 3500-4000 sq ft 5br 3 bath 3 car garage in miami with that kind of money...It seems like even a pharmacist cant afford a decent house in these major cities in CA.

Yep, that's normal here lol... You get a shack for $500k ~1500 sq.ft. Here "You are either dead broke or super rich..." There is no in between <_<

How would they be able to afford something that expensive on a salary under 100K? What kind of monthly mortgage would they be looking at with a 500K house on that salary?

Say someone making $40/hr.
Quick estimate yearly income = 40X2 = $80k/year salary
65% is take home after tax $52k/12 months
$4300/month salary

500k house, 20% down payment ($100k)
400k Mortgage
$1777/month payment
$340 taxes and insurance
$2000/month

$4300-2000 = $2300 left over. Yes, $80k salary can buy $500k house and still have $2300 left over money every month... Now, if you are a poor pharmacy student who just graduated with $200k student loan, you are out of luck.

 

[Temperature101]

Yep, that's normal here lol... You get a shack for $500k ~1500 sq.ft. Here "You are either dead broke or super rich..." There is no in between <_<



Say someone making $40/hr.
Quick estimate yearly income = 40X2 = $80k/year salary
65% is take home after tax $52k/12 months
$4300/month salary

500k house, 20% down payment ($100k)
400k Mortgage
$1777/month payment
$340 taxes and insurance
$2000/month

$4300-2000 = $2300 left over. Yes, $80k salary can buy $500k house and still have $2300 left over money every month... Now, if you are a poor pharmacy student who just graduated with $200k student loan, you are out of luck.

I would not advise someone or a family to have half of his/her take home salary to pay a mortgage...I think a mortgage should not be >25% of someone's or a family take home salary. Anything over that would make you house poor with no rooom to invest IMO. I guess there is something magic about CA/NY/DC that would make people want to live in these major cities in these states.

 

[Momus]

Thought it's relevant for this thread... Middle Class can't afford homes in major cities XD

 

[xxallison]

500k for a condo/townhouse! That is crazy...You can buy a 3500-4000 sq ft 5br 3 bath 3 car garage in miami with that kind of money...It seems like even a pharmacist cant afford a decent house in these major cities in CA.

Lol are you insane? I live in miami & my parents have a 4br 3bath 2200 sq ft which is over 500k and its not even in the priciest neighborhoods. Miami real estate is very expensive.

 

[Momus]

Lol are you insane? I live in miami & my parents have a 4br 3bath 2200 sq ft which is over 500k and its not even in the priciest neighborhoods. Miami real estate is very expensive.

Why you can get a big house in Miami... not in SF...

Lowest Income Cities

Median Income
Tampa $43,832
Miami $45,407
San Antonio $48,699
Pittsburgh $48,854
Detroit $48,968

Highest Income Cities

Median Income
Washington, D.C. $86,680
San Francisco $71,975
Boston $69,455
Baltimore $65,463
Seattle $64,085

 

[Doctor M]

Yep, that's normal here lol... You get a shack for $500k ~1500 sq.ft. Here "You are either dead broke or super rich..." There is no in between <_<



Say someone making $40/hr.
Quick estimate yearly income = 40X2 = $80k/year salary
65% is take home after tax $52k/12 months
$4300/month salary

500k house, 20% down payment ($100k)
400k Mortgage
$1777/month payment
$340 taxes and insurance
$2000/month

$4300-2000 = $2300 left over. Yes, $80k salary can buy $500k house and still have $2300 left over money every month... Now, if you are a poor pharmacy student who just graduated with $200k student loan, you are out of luck.

this seems low.

 

[BMBiology]

Mortgage rate tax deduction is a myth if you are making a pharmacist salary and buying a $550,000 house especially now since interest rate is so low. Why? Because in order for you to get the mortgage tax deduction, you have to itemize your taxes and therefore, give up your standard deduction ($5,950 for single).

I calculated if you are making $125,000 a year, borrow $450,000 @ 3.5% interest rate for a $550,000 house, you will save < $4,000 in taxes for the first year (most saving). However, property tax is >1% in California so >$5,500 in taxes a year. No saving whatsoever.

 

[BMBiology]

In addition, because most people think they are getting a tax break by buying a house when they are actually not, this drives up the price of houses:

http://www.npr.org/blogs/money/2012...lan-that-economists-love-and-politicians-hate

 

[Temperature101]

Lol are you insane? I live in miami & my parents have a 4br 3bath 2200 sq ft which is over 500k and its not even in the priciest neighborhoods. Miami real estate is very expensive.

No I am not insane. I live in Ft Lauderdale and I know pretty well the housing market in South FL..Your parent may have bought that house between 2004-2007 when prices were at their highest.
http://www.realtor.com/realestateandhomes-search/Miami_FL/beds-5/baths-3/price-450000-500000