HOW MUCH HOUSE CAN I AFFORD? | Home Affordability Spreadsheet

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!

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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.

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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.

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[garrettfreeman]

They need to teach this in high school

[DavidE-tjrc]

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

[zlatigol]

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

[jgarrison]

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

[JoseGarcia-xtkm]

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.👍

[scottstewart]

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

[frankrubino]

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!

[ericlarochelle]

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

[CaitlynGoesHiking]

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...

[benprovost]

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

[autohelix]

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.

[preparetobedazled]

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

[samcotuna]

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

[ResourceTalks]

*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.*

[bueller]

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

[jeremyz]

Grinding that 20% down payment is what's killing me right now.

I need to live off of rice for the next 2 years...

[alexfernandez]

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!

[Mark-hmpe]

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%.

[cimmeriantower]

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.

[jairosegundo]

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