Is it possible to afford a condo on a 60k salary? I’m thinking about taking out a loan, and going back to school. ?

I’m in my late 20’s and am currently bringing home $60, 225 annually. Presently, I live in a studio apartment with my kitten, and am paying $1,375 in rent. 

In the very near future I plan to go back to school to obtain my masters. My job offers tuition reimbursement so I’m getting my masters for free essentially. I guess I’m looking into a condo because I want a bedroom and want to own instead of rent. The amount of money I am spending on rent I would think could go towards an actually home. 

I do not have student loan debt. I have a good credit score 740+ and barely have any real debt. Maybe some credit card bills to pay off that’s it. 

What do think? Please help point me in the right direction. I want to make a wise investment. I doubt I’ll be getting married or anything anytime soon or having kids 

Update:

A one bedroom apartment in NY starts at $1,600 I would think at that price I should just own.

Update 2:

If this makes a difference, I am looking to buy in boroughS like Bronx and Westchester 

5 Answers

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  • 4 weeks ago

    You can borrow about 180K for a home.  So all depend son the cost of the condo and what you have to put down.

  • 4 weeks ago

    in my area, yes

  • 4 weeks ago

    Step one is to speak to a lender.  You sound like you would qualify easily so is just a matter of how much you have to cover a down payment and closing costs and determining how large of a loan a lender will give you and how large a loan you are comfortable repaying (these two numbers aren't always the same).

    The rule of thumb is you can get a loan of about 3 times your gross income (pre-tax) on the high end, but you need to talk to the lender to know your price range before you start shopping (ideally with a realtor).  Good Luck, and pat yourself on the back for being wise to want advance towards home ownership.

  • 4 weeks ago

    You should be able to get a loan for about 3X your annual income or $180K.

    In upstate NY this might be do able, in the tristate area it's not going to be.

    You need to save for the downpayment and closing costs. 

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  • 4 weeks ago

    In most places, yes.

    Unfortunately for you, NY is one of the few places where condos are so expensive that you might not be able to.

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