My base is 200k with annual bonus around 5-15%, have 350k saving in cash and 430k in 401k/529. I live in east coast with stay home wife and 2 babies. Am I going crazy if I buy a $1million house in high property tax neighborhood (good public school)? Cannot seem to find a good house below $1mil in good school district…

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These numbers tell a story that you’ve been waiting on the sidelines for a long time, especially if you’ve saved $350k in cash

Two years ago, half the people said a recession was imminent and half the people were saying the economy was extremely robust. The recession truthers went to cash and lost out, and the people who said the economy was robust made investments and are sitting pretty in a robust economy

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I know I’m bad at this. That’s why I posted this question for wisdom…

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How much do you plan on putting down?

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200k/20% unless this does not make sense

If they're actually babies, why are you concerned with school district? Plans, jobs, and lives change. I would consider how realistic it is that you're still there once they start school. Even up until 2nd grade, the school quality isn't that impactful (assuming it's safe).

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True and great point

Don’t worry about school district unless they are 2nd-3rd grade. you can easily get 24-30k per year on your 350k saving in HYSA + S&P500. So you can easily rent 3bhk at 4500-5000 per month for longer term. Wait for the interest rate get down in mid 5.3-5.7% it makes a lot of difference in monthly installments.

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Not crazy. Do you expect your income to increase? I

I hope so, but it would depend on a lot of factors.

Not crazy, but if the mortgage is more than 30% of your take home pay, it might feel pretty tight

M2- personally, I wouldn’t want it to be higher than that because I enjoy extra free cash flow for other things more important to me. But also live in the Midwest and that’s not hard to do here.

I would pay more for a house with a lower property tax.

$1m in a good school district? Where on the east coast are you? That seems really cheap.

200k hhi with two kids trying to by 1M property? Oof

It’s definitely not impossible, just generate more income

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A bit tight but not crazy. Maybe consider renting for longer?

At what point do they stop renting? The liquidity is there to make the situation comfortable IMO…

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