HOW MUCH HOUSE CAN I AFFORD? | Home Affordability Spreadsheet

Рет қаралды 392,596

Күн бұрын

In this video, I will show you exactly how I calculate how much house you can afford.
There are a lot of different schools of thought that talk about how much house you can afford, but I'm going to err on the side of being conservative when calculating this number.
Knowing how much house you can afford is important because you don't want to be house poor. You want to be able to invest, travel, give to others, and have money set aside for a rainy day. If you can't afford the house that you're buying, you may run into trouble saving up for these things.
Watch the entire video because this spreadsheet is very powerful.
Follow me on Instagram and send me a direct message and I will send you a copy of this spreadsheet in Excel!
JOIN THE WBF NEWSLETTER!
😍 bit.ly/WBFnewsletter
--------------
GET MY HOME AFFORDABILITY SPREADSHEET HERE:
🏠 / whiteboardfinance
--------------
FUNDRISE - Invest in Real Estate with just $500
🏠 bit.ly/FundriseWBF
--------------
SCHEDULE A COACHING CALL WITH MARKO
🤝 bit.ly/MarkoCoaching
--------------
BETTERMENT - Start Investing Today!
🤑 bit.ly/BettermentWBF
--------------
FOLLOW ME ON INSTAGRAM
📷 / whiteboardfinance
--------------
Instrumental Produced By Chuki:
/ chukimusic
ABOUT ME 👇
My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
Subscribe if you are interested in:
#Investing
#PersonalFinance
#Entrepreneurship
#StockMarket
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.

Пікірлер: 1 100

@WhiteBoardFinance 4 жыл бұрын

*Get My Home Affordability Spreadsheet Here:* www.patreon.com/whiteboardfinance

@magicandgames1 4 жыл бұрын

Marko - WhiteBoard Finance any way I can get it for free?

@remysteel1 3 жыл бұрын

Nice

@WhiteBoardFinance 3 жыл бұрын

@@magicandgames1 yes join the newsletter, it comes after 24 hours

@magicandgames1 3 жыл бұрын

Marko - WhiteBoard Finance where can I access the newsletter?

@michaelbower8070 3 жыл бұрын

Hey, what's the reason behind the 28% net income rule? Why that number?

@garrettfreeman769 4 жыл бұрын

They need to teach this in high school

@DavidE-tj4rc 5 жыл бұрын

I gotta move into a van and live down by the river!

@somikassomikas6691 5 жыл бұрын

Lol

@thiagocaproniny 4 жыл бұрын

If you do that, you can invest all the money you make, and you will have enough passive income to retire in less than 10 years, while people work 30+ years prior to retire

@napoleonbonaparte7204 4 жыл бұрын

Jaja jaja let me know how that turns out I may be fowlloing your steps!!!✌

@TheExcellentInvestor 4 жыл бұрын

David Echols Chris Farley references. Love it!

@Runny117 4 жыл бұрын

if I didnt have a 2 year old I would do this lol...instead I'll have to live behind a burger king in a cardboard box. damn divorce :(

@zlatigol9 5 жыл бұрын

Incredibly informative. I wish more finance channels used spreadsheets like this so we can actually see what's happening. Most people are visual learners

@WhiteBoardFinance 5 жыл бұрын

Thank you dougie!!

@JoseGarcia-xt6km 4 жыл бұрын

Marko I don’t know you on a personal level but you seem like a very genuine guy who’s giving people great advice on finances.👍

@scottstewart8737 4 жыл бұрын

I only take home 65%. Being single and making good money is rough for taxes.

@matthew8153 4 жыл бұрын

Scott Stewart Find a housewife (or husband)

@jgarrison1309 5 жыл бұрын

Home repairs.... don't forget maintenance. When you lose the landlord, you lose the handyman too!

@Davidjune1970 5 жыл бұрын

Yes, rule is to save up 2% of home value a year to cover the regular maintenance costs.

@hartsickdisciple 5 жыл бұрын

@@Davidjune1970 Ok, let's apply this to a $200,000 home. 2 percent of that is $4,000. The home owner has to make their mortgage, cover all their other expenses, and also save an additional $4,000 a year for maintenance costs? That's quite a bit to ask.

@MrNightpwner 5 жыл бұрын

@@hartsickdisciple 4k/12... 350ish? A month. Hmmm I guess. Making 50k a year without kids makes this all too easy though. The only real hurdle I see is that first 20%

@ashishsrivastava2502 4 жыл бұрын

How abt lender paid mortgage where you pay less than 20% and can later refinance?

@Hallowsaw 4 жыл бұрын

And then there is where I live north east of DC where people make 80-100k and live in 300-500k houses. Idiots

@CaitlynGoesHiking 2 жыл бұрын

Wow, I think this spreadhseet also shows the power of having a partner to combine incomes in order to make this happen. Based on my single-person income, 28% of my take home means I should have about a $1,000/month payment tops. It'll be a tough one to find, but i'm going for it! Currently saving a chunky down payment to keep that monthly lower...

@braddahalladin8697 Жыл бұрын

Good luck!

@frankrubino5326 5 жыл бұрын

Marko this is fabulous! You have a really great way of explaining things that seem very complex at first. Thank you. You are providing a great service!

@autohelix 5 жыл бұрын

If you buy through a credit union you can actually avoid PMI all together. I'm all for putting a large amount of money down, but here's the reality if you lose your job that extra down payment isn't going to help you nearly as much as having a extra cash in the bank to help you out of a bad situation. Pay extra on the mortgage definitely but also have enough money saved up in liquid cash, so you can bail yourself out of a really bad situation.

@WhiteBoardFinance 5 жыл бұрын

Agreed.

@khaledabdelwahab9455 4 жыл бұрын

Agreed, 100% true do not put all your money in downpayment

@samcotuna4293 4 жыл бұрын

Damn, Tim Tebow knows is numbers! Good vid man.

@WhiteBoardFinance 4 жыл бұрын

LOL

@YeepLife 4 жыл бұрын

Sam Cotuna haha

@justinturbopool9367 4 жыл бұрын

"Finances 3:16" 😂

@preparetobedazled 2 жыл бұрын

My wife and are total novices when it comes to house buying, and are really just now starting to seriously consider buying a home. This is a wonderful and easy to understand explanation! Thank you

@ResourceTalks 5 жыл бұрын

*I had to read the title a couple of times, lol.* *Although, I'm not in the market of buying a house right now, but I definitely follow the logic behind your analysis. Great job, Marko.*

@alexfernandez7529 4 жыл бұрын

I purchased my first house when I was 22. I split the mortgage 3 ways with my sisters. When one of my sisters moved out we sold the house and split the profit 3 ways. Each of us got 10K. Two us went and bought a house each and one spent her money on a new car. Over the last 20 years those of us that bought houses have built up a lot of equity. This allowed my wife and I to sell the old hose and buy our dream home. We now sold the dream home and are moving into our home till the kids move out and go to college!

@bueller8278 5 жыл бұрын

He paid himself 10% more than his wife in the example. It's the patriarchy! The patriarchy!

@WhiteBoardFinance 5 жыл бұрын

Toxic masculinity if you ask me

@Ssookawai 4 жыл бұрын

😂😂😂😂😂😂 (yeah I'm a woman and I find this comment extremely funny).

@Candlelight787 3 жыл бұрын

@@Ssookawai Woman! We have a woman here!!! See...nobody cares...

@Mark-hm8pe 5 жыл бұрын

Good information. Don’t consider your primary residence “an investment” and it becomes a bit easier to limit your monthly spend on housing to something reasonable. All in 30% of after-tax income seems like a good number. Homeownership comes with other expenses too: the furniture, the landscaping, the lawnmowers, the cleaning supplies, the days spent maintaining your property rather than taking on extra work or enjoying your free time. All that should be factored in to the 30%.

@blaiseuriarte8296 Жыл бұрын

Disagree. Especially if you set up your property to generate income as well.

@benprovost6298 4 жыл бұрын

4000 a month is plenty to live off of, hell most people don’t make that anyway lol.

@malinoisnation9392 4 жыл бұрын

Ben Provost hourly or salary is the highest tax bracket.

@tremonster1 4 жыл бұрын

You don't have kids do you?

@benprovost6298 4 жыл бұрын

tremonster1 nope. And single. But a lot of people in Louisiana make less than 50k a year, kids or not, and they own homes. Maybe not as “comfortable” as they would like, but it can be done easily.

@tpatt89 4 жыл бұрын

exact thing I was thinking. I know plenty of folks that would jump at the chance to have 4k a month after housing expenses

@MalakhiW 4 жыл бұрын

huh?

@jeremyz6911 5 жыл бұрын

Grinding that 20% down payment is what's killing me right now. I need to live off of rice for the next 2 years...

@WhiteBoardFinance 5 жыл бұрын

It's easier with 2 incomes

@oddixgames6704 5 жыл бұрын

@@WhiteBoardFinance cloning is not available yet I guess :)

@WhiteBoardFinance 5 жыл бұрын

Marriage is lol

@oddixgames6704 5 жыл бұрын

I'm afraid after you buy that house you would live on a noodles :)

@ek07305 5 жыл бұрын

Guys there are better ways. You don't have to put 20% down at all. There is a lot of help out there.

@carmine4885 4 жыл бұрын

250k - 300k in New York is getting me a shack and a ridiculous property tax. Great vid though 👍👍

@WhiteBoardFinance 4 жыл бұрын

Sorry to hear that. That gets me 3000sf and excellent schools and no crime in Cleveland

@lvdoom5620 4 жыл бұрын

😂😂😂😂😂

@cimmeriantower 5 жыл бұрын

Great video, Marco. Thanks for the spreadsheet. For other viewers here, if you pause through the video, the formulas are visible so you can easily copy it yourselves.

@ericlarochelle7852 4 жыл бұрын

"money for traveling", I dont need money for traveling, travelling with kids is more stress than its worth bahahahaah

@Jimmy-ph8xn 5 жыл бұрын

I had PMI on my house as both my wife and I were in a crazy amount of student loan debt and had just graduated. I paid it down to 78% LTV by about 5 years ahead of schedule, so the PMI wasn’t too punishing and the house appreciated 43% in 4 years. It paid off in the end, but if it hadn’t appreciated and I hadn’t gotten a better paying job, we’d be underwater by the time the next recession hits.

@redbeardrick7052 5 жыл бұрын

NE Ohio got me. Subbed instantly. Go Browns! But seriously, very informative video. Being only 25 and starting to start my adult life and career it's a little overwhelming, but your videos are extremely helpful and informative!

@Moviten 4 жыл бұрын

Just came across and started listening..was shocked when you mentioned Northeast Ohio. I purchased my first home in Ohio City 2 years ago. Thankfully it came with a 15-year tax abatement; which drastically adjusts the numbers. Now I'm debating refinancing to a 15-year mortgage.

@quintinkale1242 5 жыл бұрын

Great video as always man. I'm located in the canfield area so not far at all. Thanks for your informative info

@edurnepardo4194 5 жыл бұрын

I just found your channel! I love it, congratulations. I am 25 years and we are taking responsibility in all our financial situation. Thank you for the help. Regards from Spain🤗🤗

@WhiteBoardFinance 5 жыл бұрын

Thanks for watching

@sammontalto4066 2 жыл бұрын

Just got pointed to this video from someone else, and let me tell you I love the way you broke this down, I'm an accountant so the use of excel to show the calculations at each step is incredibly helpful and you've got a subscribe from me!

@WhiteBoardFinance 2 жыл бұрын

Awesome, thank you!

@tomnorton7817 4 жыл бұрын

It’s interesting seeing someone in a different country do their sums. Over here in the UK... 1) House prices seem to be a bit worse (my 2-bed flat in London was £320k and that was a good find) 2) US interest rates are higher (I’m on 1.3%, and I only needed 75% LTV to qualify) 3) Taxes/deductions are obviously different. I’m at around 38% of take home for home & all bills. But I also shortened my mortgage term to 12 years to ditch it ASAP. The only real difference in my spreadsheet to yours is I set up an accurate income tax formula so I can use it to project what happens if I pay more into my pension (aka 401k) etc.

@jairosegundo3862 4 жыл бұрын

Very good communication skills. You make very easy to understand!

@seyia4376 4 жыл бұрын

So true

@Kevin-jf1ww 5 жыл бұрын

anything worth doing you need to sacrifice. even avoiding those vacations and all that if you want to get ahead. paying the insurance on the the mortgage is worth it if u don't have the 20 percent down (long as you can still afford it!). i did 3 apartments with 5--5-20 percent down. best decision I've made. enjoying the content Marco!

@WhiteBoardFinance 5 жыл бұрын

Thanks for your input and for the kind words!!

@emmerse 5 жыл бұрын

New sub after this one. Good stuff as always

@kyletaggart 4 жыл бұрын

Thanks for the spreadsheet! Little bit of a pain to get it. Also gotta love that KZfaq money haha. Will check out your other videos, nicely done!

@deepthirao164 4 жыл бұрын

Very informative video, Marko. 👍🏻 Thank you for the spreadsheet and your awesome communication skills ❤️👍🏻👍🏻

@adalbertolima3491 5 жыл бұрын

This video was amazing, I think a big part of America’s problem is a lack of educated spending. People complain about living check to check but aren’t willing to crunch the numbers and do sacrifices

@WhiteBoardFinance 5 жыл бұрын

Absolutely true thanks for watching and commenting!!

@charizard9735 5 жыл бұрын

That's because the education system doesn't teach them about finances. Instead they teach things like Algebra which many if not most of us will never use once we leave school. There are also those who are just generally bad at math and banks and credit card companies market their products so well it's easy to see how many people are in lots of debt.

@appleiphone69 5 жыл бұрын

The most important financial lesson is to know what end of compound interest you are at. Second lesson is to live below your means

@Nwakaego_ 4 жыл бұрын

You need to be a college professor and the class just needs to watch ALL your KZfaq videos of the realities of adulthood. I’ve learned sooo much in the 2 days of discovering your channel. Thank you!

@threesisters3396 4 жыл бұрын

Got the spreadsheet. Anytime, i see a house, i punch in the numbers into the spreadsheet and decision made in less than 5 mins. Thanks man

@WhiteBoardFinance 4 жыл бұрын

My pleasure. Pay it forward and share the channel

@thisvato125 5 жыл бұрын

Man! This is a very helpful video. Whiteboard finance is awesome!

@johna.6725 5 жыл бұрын

Would love to get a hold of this spreadsheet! Its so helpful and simple! Thank you!

@WhiteBoardFinance 5 жыл бұрын

Dm me on ig

@kevinjiszler 4 жыл бұрын

Love this channel. Thank you so much Marko for sharing your knowledge with us.

@alejandrahowell2057 4 жыл бұрын

Again great video! People today need to be tought simply! I'm showing this video to my children. God bless

@JeremyBorumComposer 5 жыл бұрын

I was following along and re-creating this spreadsheet as he clicked on each cell. Only at the end did he say he would share it. Doh! But if you don't want to subscribe to him on Insta, all the info you need is right there on screen. ;-)

@guxtAv123 5 жыл бұрын

I'd be best if you put some context into where you're living off the after-house-tax income. 4k is a fuckton of money to get by the month living in Texas for example, compared to California. Also it depends for the number of people living off of that ammount. 2 people = lot of money. 5 people = not so much.

@giofromtexas2679 5 жыл бұрын

I just left a comment talking how reasonable the housing market is here! It's insane and I love it I'm not moving anywhere but within Texas haha

@r.d.9399 5 жыл бұрын

4k a month is horrible.

@giofromtexas2679 5 жыл бұрын

@@r.d.9399 what occupation or position do you hold that pays you more? I would like to know out of curiosity. And also which state do you live in? That plays a huge part in the cost of living. $4,000 a month is luxury here in Texas! I can attest to that.

@avall81 5 жыл бұрын

Field machinist here in Texas making $14k a month.

@pepperelliott 4 жыл бұрын

Well when you factor in maintenance costs, insurances, doctors visits, car payments, car maintenance costs, food, 4K can go quick, especially with multiple kids.

@Elrico46 5 жыл бұрын

Loving your videos. Excellent

@obi-wankenobi7902 4 жыл бұрын

New to the channel, learning a lot and loving all the videos you're posting Marko, keep up the good work!

@WhiteBoardFinance 4 жыл бұрын

thank you please share with your friends :)

@obi-wankenobi7902 4 жыл бұрын

@@WhiteBoardFinance I already do, all the time.

@deltas4587 5 жыл бұрын

Great Video as always, this will be my last time watching you for the week as ill be relaxing in china for 7 glorious days!

@WhiteBoardFinance 5 жыл бұрын

Awesome, enjoy!! Glad you liked the video

@yayarivera1 5 жыл бұрын

I’m a visual learner and I appreciate your spreadsheet videos 👍🏼👍🏼👍🏼

@WhiteBoardFinance 5 жыл бұрын

Thanks Claudia!

@terancebooker7794 4 жыл бұрын

We love you for what you do!!! We thank GOD and appreciate you Marko for all your videos you post. GOD is blessing you. Keep creating content.

@WhiteBoardFinance 4 жыл бұрын

Thank you Terance :)

@danniea487 4 жыл бұрын

New sub. Love your channel Marko. Keep it up. Some of the personal finance youtubers are bit annoying but you are super chill and down to earth!

@antoniot.6594 4 жыл бұрын

My wife and I bought a condo at 25% of our net income bc we wanted to be very comfortable. We save the rest for all sorts of stuff: baby fund (trying to have our 1st one so we want savings to absorb the shock of childcare), travel, emergency repair fund, lease down payment fund. It's funny to see some ppl who have their big house and nicer cars but never have taken an overseas vacation, and are almost living paycheck to paycheck.

@Gustavowoah 4 жыл бұрын

Hey S/O from Cleveland! Your videos are great

@thehungryhussey 4 жыл бұрын

Great info as always my friend. Our family is now looking to build a house and was looking to make a spreadsheet but this spreadsheet seems to hit all points.

@MadisonNakayama 4 жыл бұрын

I’ve seen a lot of spreadsheet like this, and I’ve even made my own... but yours is by far better. Please provide!!!

@dadpool0077 4 жыл бұрын

Breakdown with Madison did you ever get the spreadsheet?

@backwoodsbully9841 5 жыл бұрын

I told A friend the other day they were house poor. He looked at my like WTF you talking about. It was pretty straight forward. I said you can't afford to do anything or buy anything because your house payment is killing you. I also said you pretty much live check to check. He agreed. Reluctantly. The conversation got his wheel turning.

@Brandons125 4 жыл бұрын

I really need to move out of California...I just did my own spreadsheet recently and I would pay 47% of net income for a house NOT including utilities. :(

@ChezzusChrist 3 жыл бұрын

Same here!! I make 6k gross a month but I still can’t afford to get a house on my own. Go figure

@TomOS1971 5 жыл бұрын

hey Marko, great videos, although you are in the US and your videos and information are related to US pricing, etc the principles remain the same and I am starting to apply some of them to my personal finances here in Ireland. We are very disciplined anyway to not fall into debt over the past 20yrs but I think with a few tweaks and using some of your info, we can make the money work better for us in the next 20. Thanks

@jonathanbulkheed338 2 жыл бұрын

VERY interesting math!! The housing market has changed so drastically over the past 3 years from the time frame this video was published. As such, I number crunched with my numbers and made a comparison to your numbers. - My house of $280K and your house of $280K. You are paying the house off at 20 years and so am I. I have a 2.25% interest rate. According to the amortization chart, if I put 0% down on the house, and pay $1,596.94 per month, between the 0% down, the $400 extra principal payment over 20 years, the savings I would have over the length of the loan would be right around ($1K-$2K within your range) your 20% down payment. So, the only difference between both of us is I pay about $100 more a month but save about $54K+ over 20 years. Thank you for the video. Awesome video. It helped me out quite a bit in my process.

@elchirucasnunez5432 4 жыл бұрын

I could probably just barely afford a 150k home, which in my area doesn't get you much...if anything. I think I will buy a Single-wide trailer and pay it off in 6-7 years, then depending on my situation at the time I will either rent it out or just chose to stay put debt free, and just maintain it to a T so that it always looks nice. I think most everyone including me wants a nice home, but in reality do we need that much to live in? I think the biggest issue is folks are embarrassed to live in a mobile home, and eventually get into a 30 year debt to somewhat appease someone or show his relatives and friends he's got this and that, when he's all flash and doesn't have money to even go out an enjoy life once in a while.

@moose5.9 5 жыл бұрын

I would LOVE to bring home 69-70% of my checks lol

@josephbargo5024 5 жыл бұрын

How much do you take? I make more than the numbers used and I take home about 73% (2018 taxes). Also, Im a single male with no deductions, but I live in Texas so we have no state tax.

@moose5.9 5 жыл бұрын

@@josephbargo5024 I'm lucky to bring home 55ish% NY taxes and I put 28% into my 401k and Roth IRA combined

@cristinab2263 4 жыл бұрын

@@moose5.9 That's better than me. I get 26% taken from taxes/insurance/small union dues, and 18% toward 403(b), leaving 56%. I'll be getting a second job soon.

@cw48494 4 жыл бұрын

Crazy, I take home 90%. Married with dependents. Mortgage is 35% my net, which is manageable and short-term.

@josecito976 4 жыл бұрын

Will _ I don’t know about legal hahaha

@timewellwasted7 3 жыл бұрын

Dude this channel provides such good information. Thank you.

@brooklynnpauline 5 жыл бұрын

Thanks so much for the helpful breakdown comparing income and mortgage rates. Appreciate it!!

@WhiteBoardFinance 5 жыл бұрын

My pleasure thanks for watching

@moialder252 5 жыл бұрын

in the Bay Area, CA, the entire cost of your home is 20% downpayment of a house in the bay area, ca in a good area lol. Imagine the struggle over there

@giofromtexas2679 5 жыл бұрын

Well here in west Texas (Amarillo/Lubbock/Midland/Odessa) you can get a brand new construction home 3/2/2 starting at $120k ... and a fully optioned out home 4/3/2 starting at $220k. The housing market is great here!

@calebolynick6685 5 жыл бұрын

This sounds like heaven!!!. I'm Canadian, and you cant find a tear down house 75miles away from a major city for under 500k. Sounds like you guys could work at Walmart and still live a decent life.

@giofromtexas2679 5 жыл бұрын

@@calebolynick6685 Oh really wow that is a stretch! And yes to an extent. The major cities to avoid here are Austin and Dallss because the cost of living doubles and even triples in some areas of those cities. So unless you have a substantial amount of income coming in you won't make it living there haha.

@SimplyAisha16 2 жыл бұрын

I won’t buy a house till I can buy it cash. Thank you for explaining this. ❤️

@Jonb01z28 4 жыл бұрын

Great video that I think all new home buyers should watch. What I see alot of is renters who thing because they pay 1500-1800 a month in rent they can afford a mortgage of 1500-1800 and have no idea of the added expenses of owning a home. They forget they are responsible for everything around the home, like lawn care/landscaping, snow removal, fence repair or replacement(fences are expensive) HVAC maintenance or repairs, plumbing issues, hot water heater, appliances break, utilities skyrocket compared to an apartment or condo your condo might have been less than $100 for electric a 2000+sq ft house could easily be 200-300 a month or more, roof is 20yrs old and you need to replace it in the next say 5yrs at a cost of 10-15k. Home ownership is not cheap and cost significantly more than just the mortgage payment even a brand new home you can within a few yrs run into major expenses that you did not expect. IMO if you can't save the 20% you have no business buying the home, it shows your lack of money handling and will quickly be eaten alive by the everyday expenses of owning a home.

@beastxxx24 5 жыл бұрын

Great video. I would be interested to see a video on how banks look at investment properties differently when you already own a home. How this might change borrower requirements ie credit, rates, %down etc. Also, worth noting. first time home buyers have access to many opportunities to help, might make an interesting video to see if they are worth it..

@WhiteBoardFinance 5 жыл бұрын

Good idea

@xmorte 5 жыл бұрын

I don't live anywhere near a major city. According to this I cant afford the median house price in my area with 71k gross. House prices are ridiculous nowadays. Feelsbadman

@JeffFindlay 5 жыл бұрын

When the math doesnt add up that's when you know a downturn is coming

@andreyoung3536 5 жыл бұрын

HAHA! Same here. I live in Connecticut....It's horrible!

@Enrightauto 5 жыл бұрын

Save up a bigger down payment

@khaledabdelwahab9455 4 жыл бұрын

Andre Young Is it expensive there in connecticut? Since it os close to New York, i live close to Toronto and prices are crazy min house price is 600k

@khaledabdelwahab9455 4 жыл бұрын

Enright Automotive The point is it takes time to save up money and then house prices and interest might go up more!!

@rotorbro 5 жыл бұрын

Marko, thank you for always posting great resources! I don’t have Instagram so is there another way to get the spreadsheet? Thanks brother!

@MikeS-hp7qn 4 жыл бұрын

Hey Marko - really enjoy the vids. Helpful advice that helps me feel more educated in how I should approach different financial pursuits IE. investing, mortgages, etc. Was wondering your thoughts: My personal financial advisor has advised me to get my monthly payments as LOW as possible - even by remortgaging with a longer term. This is so that I'll simply have more money to invest. It is a prioritization on investments over mortgage debt based on the idea that putting that extra money into a medium/low risk investment that turns an ROI of 6% is much more likely to make you more money than the 4% interest you'd be putting your money into. What are you thoughts on this??

@robhar82 5 жыл бұрын

Another thing to consider and I see this all the time, when someone prioritizes an automobile over a home for example u drive an 60+ thousand dollar vehicle but live in a sub 100 thousand dollar house

@WhiteBoardFinance 5 жыл бұрын

Gotta stunt bro

@AlexManiacPavlenko 4 жыл бұрын

Hi! Can you share a link to your document? Thank you.

@Cbagz795 5 жыл бұрын

Great vid and awesome spread sheet

@melidiroberts4904 Жыл бұрын

awe so nice hearted happy to support and thanks for the info!!!

@williamsjc12 4 жыл бұрын

This makes so much sense with the way you laid it out. I'm also looking with my wife in NEOhio for a house. Crazy to hear you say that in the video 😂 great content!

@SoSkepticalFox 4 жыл бұрын

"They cant live off 4000 a month" EXCUSE YOU!?

@tremonster1 4 жыл бұрын

The people shocked by him say that must not have children

@seanphillips2480 4 жыл бұрын

@@tremonster1 I know people with children that make less than that and are doing ok. If $4000 a month gross is too little, you probably need to reevaluate your finances and priority. In other words, you're probably wasting ALOT of money.

@tremonster1 4 жыл бұрын

@@seanphillips2480 or you're probably just oblivious to other people's situations.lol Like i said. You don't have kids. You don't know what you're talking about. A child's hospital bill alone is Almost 4k. Not to mention people who have multiple children. 🤦‍♀️🤦‍♀️

@tremonster1 4 жыл бұрын

@@seanphillips2480 but since youre so qualified to speak on other people's finances just because "you know people that are doing ok" lets run the numbers shall we? So take $4,000 You got rent $800 Uh oh....you need daycare right? Thats $600/mo ( if you're lucky) Car insurance is going to cost you $500 Oh wait! baby has to get their shots twice a month. So that's a $400 doctor bill per visit if you dont have good insurance. (And that is per child) so with 2 kids that $1600 per month Utilities $200 Phone bill for both parents $290 Then youre probably going to need at least $200 to $300 for groceries for the month.....and we haven't even got to the cost of similac and daipers and baby food.lol 🤦‍♀️🤦‍♀️🤦‍♀️

@WhiteBoardFinance 4 жыл бұрын

$4k a month is not that much when properly saving for retirement, traveling overseas, etc. Excuse you lol

@TheVisionWeShouldShare 4 жыл бұрын

Great video!!! I love the spreadsheet but I don’t use Instagram. I would love to be able to use your spreadsheet. Your a great teacher by the way.

@jfloresdrums 4 жыл бұрын

Great video bro! Love the excel spreadsheet.

@bugatti314159 5 жыл бұрын

Too many inexperienced buyers will just use the bank's estimate of what they can borrow since they know next to nothing about finance (interest? what's that?). This number will usually be absurdly high - well over 30 percent of gross income, which will spend you into bankruptcy in no time if you fall for it. Always run your own numbers like this video shows. If you don't understand the basics you shouldn't be buying a house until you do. Also - 5000 for taxes in Cleveland?! Damn, mine are $1300 yearly on a 5 bedroom 3 bath house. Location is everything!

@WhiteBoardFinance 5 жыл бұрын

Actually more like $7k in annual taxes lol. Cuyahoga county gotta love it

@MrFARTSANDWICH 5 жыл бұрын

I'll look at it this way any house that takes you 30 years to pay off you can't afford. Most people don't realize if you take 30 years to pay off a house you're almost paying double for it.

@GonzoT38 5 жыл бұрын

That's not in question. The thing is, most people move every 9 years and not because they necessarily want to either. The concept of paying off a house is rooted on the anachronism Americans stay put anywhere near that amount of time. It just isn't true for the majority of the working population. Too much forced economic nomadism. Post-work life? Completely different story of course. I have no expectation of remaining on my current home more than 15 years. Who knows what will happen. As such, the opportunity cost of sinking that much capital today isn't anywhere near worth the liquidity I can enjoy in the mean time, while essentially renting the difference (the interest) in order to not have all my capital tied to a real estate transaction. Sure, renting would serve the same purpose, except landlords can decide to get out the game and forced me to move to another rental before I'm ready to deal with the hassle of moving. That is worth financing a home as opposed to renting it for me. When I rented apartments it made sense, as those generally stay rentals. Single family home rentals on the other hand are too fickle for my taste, which is why I finance now until my circumstances changed. Mind you, I have owned before, and just got done with a 7-year renting tenure in a craphole town the military sent me to. So I favor either, really all depends on life stages. If I KNEW I was gonna stay in this home for the rest of my life? Of course I would pay it off sooner and outright. But that's simply not a statistically significant certainty for most most Americans. If you have that kind of crystal ball though, more power to ya.

@Ssookawai 4 жыл бұрын

And I was planning to pay for a yearly gym membership (cheapest option)… After the video, I immediately started looking for workouts at home with no equipments... I've already made a tour to buy a small (and affordable) apartment, some are quite affordable but not if I apply the spreadsheet (my income is quite low). Guess I'll need at least three more years to get an emergency fund + that 20% deposit and live frugally, like a monk,hahahaha! God it was a hard slap on my face but I guess I'm much more awake after this visual example, thanks a lot!

@uranusplanet1226 4 жыл бұрын

Im 36 years old - single man live in Miami- No kids no debt and almost 800 score credit. I was able to save $120,000 over the past 10 years. Just paid off my brand new car 2018 Acura hopefully it will last me long time (until 2035) It's so hard to save because I had so many ideas how to spend it lol. I stuck to my plans and will only invest it hopefully soon with this coming dip in Real Estate and stocks. Too expensive now, ill wait. Thank you for this Marko, I honestly made this sheet myself hahaha I just copied the formulas so thank you for hovering over EVERY SINGLE FILED hahaha cheers for the mills

@nicoles.3697 4 жыл бұрын

Thanks for laying out all the math. Very helpful!

@TheDreamGreenShow 4 жыл бұрын

super helpful

@dipperq 5 жыл бұрын

plus maintenance. real tax rate in NYS is about 40%

@Just999Me 4 жыл бұрын

damn this would've been useful had I seen this back when I was 24 and bought my house. Had to learn all these numbers the hard way. Still glad to have seen this now so I can be better prepared for my next investment/house in the upcoming years.

@Spawn223311 4 жыл бұрын

Man I'm currently 28 trying to find a job and pass my registration exam to get a even better job. All of this to try and hold onto my sanity while living with my parents and saving at least 80% of down payment or full on cash on a fairly cheap but good apt. I really don't want to waste so much money on interest.

@gongolie 5 жыл бұрын

Excelent video! I also have to say that if you go over 28% of home expenses, lets say 33%, it doesn’t always mean you are home poor. Of course people have different styles of finances. In my case for example, my home consumes about 37-39% of my income, but my debt to income ratio is somewhere below 50%. I do have house expenses, but 0% on credit cards, or loans, or car payments. So after all expenses, including food, for my family and I, having 50% of income saved and available for future months, it is amazing. Again, excelente video, but I would also take into consideration debt to income ration.

@marveliciousgoku4343 5 жыл бұрын

Gabriel Rivera yes, and i think there should be a separate formula between single income households versus multi income households?

@WhiteBoardFinance 5 жыл бұрын

You just don't enter the 2nd income into the spreadsheet lol

@marveliciousgoku4343 5 жыл бұрын

Marko - WhiteBoard Finance Marko - WhiteBoard Finance but the property that will be purchased is gonna be shared between 2 different incomes, whats the threshold for that, is it still 28%? Should I divide my total mortgage by half and multiply that to 28% of my net income?

@russelcurtis1647 5 жыл бұрын

Great video. Ramsey always says 25% net as a guideline - I have routinely heard him say people at 30% are just fine depending on their situation. Of course people with multiple kids or other dependents will require extra $$ during the month. Personally living in CA I am at 30%, not married, no kids I have a lot left in the budget to play with. Thanks again for the video!

@pobertubbesing 4 жыл бұрын

Thanks for the advice. This was very informative.

@carmennrn6522 2 жыл бұрын

Hi Marco, 🙋🏻‍♀️ Carmen here. I want to start of by saying I love your videos. They are very informative and straight to the point. I need help figuring out how much house I can offered. With house prices going up, and me being a single parent, it makes it hard for me to figure out if I should buy now or wait. I don’t want to live beyond my means, but with today’s economy it is hard not to do so. I am also afraid if I wait to buy things will get even more expensive. I would appreciate your input. Thanks

@bkinouye 5 жыл бұрын

For San Francisco, multiply all numbers by 5.

@WhiteBoardFinance 5 жыл бұрын

Lol

@aes-256e 5 жыл бұрын

Well if your net income is multiplayed by 5, there is no problem buying a house 5 times this price, as it will be the same percentage.

@casper01713 5 жыл бұрын

This is an awesome spreadsheet. Would it be possible to get a link where the spreadsheet can be downloaded? Planning to buy a house in the next three months. Thanks

@WhiteBoardFinance 5 жыл бұрын

I say in the video how to get it :)

@robocop581 4 жыл бұрын

My rule is buy a house with a monthly mortgage payment that is 15% below what I would normally pay in rent per month. Has worked out very well on our 25 year mortgage. Our current mortgage which is on year 10 is 12% below rental rates in my area

@mr.brightsideexteriorclean2163 4 жыл бұрын

This is awesome thank you!

@bluesraincancun9217 5 жыл бұрын

This was very helpful. Thanks.

@WhiteBoardFinance 5 жыл бұрын

Glad I could help

@mrnjdoss 5 жыл бұрын

I love the topics. Its rough for me in california. I would like a copy of the spreadsheet.

@WhiteBoardFinance 5 жыл бұрын

Dm me on ig

@christians.1941 3 жыл бұрын

Killed it with this spreadsheet, love the videos👍🏽

@ybkrnmusic 4 жыл бұрын

Appreciate the video! :D

@IvansBikesBmws 4 жыл бұрын

Wow when I look at these break downs, now I see how expensive our homes in Toronto are.

@WhiteBoardFinance 4 жыл бұрын

You guys are getting ripped off big time. Same weather as Cleveland and 5x as expensive

@IvansBikesBmws 4 жыл бұрын

@@WhiteBoardFinance I agree 100%. Pozdrav

@funstuff9153 4 жыл бұрын

Dave Ramsey suggests your house payment no more than 1/4 if your net income (25% not 28%). He also says that you should only get a 15year fixed rate mortgage. Just an FYI.

@WhiteBoardFinance 4 жыл бұрын

I'm aware thanks :)

@cp3onmtv963 4 жыл бұрын

I’m really glad I found this video (thanks for making it and having this excel downloadable, its been a life saver!) but its also pretty disheartning. Im also in Ohio (513) and you can get a lot of house here for the money but according to this formula it would be impossible for me to own. Just renting I’m at 75% of my income (unbelievable). 100k house here would average about 1k a month w/ utilities, which is not bad for the amount of house you get, but that alone is 41% of my income… then you add additional expenses. Car insurance, phone bill, food etc that takes me to 72% of my income. Thats nearly 50% higher than what’s being suggested. Even when I take the price of the house from 100k down to an unliveable 10k, my expenses are STILL over 50% of my income. I would have to double my income just to get under 40% (which just isn’t going to happen for 98% of America). Wow. Thank God this system of things will not stay like this forever!