Related Posts
Tether is a giant fraud. How do I short it?
Conversation Starter
Why aren't stocks going down anymore?
More Posts
I joined Infosys 5 days back. I want to leave because the project allocated to me is not matching to my skill set. When i asked same thing to my hr , they informed me that I will be getting kr for that. What should I do now?
Will abscond a good idea or something else. Please help. Infosys
Can we get some spicy snacks next shipment 👀🔥?
Happy Golu season! .... continued
Additional Posts in Personal Investment Chatter
Pro
Conversation Starter
Conversation Starter
When to buy back in to triple leveraged etfs 🔮
Conversation Starter
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Get what suits your residential needs the most. If your most ideal house happens to be the pricier one, so be it. If you'd be equally as happy in cheaper, go cheaper.
Don't go buy a 5bd in a great school district when you don't have kids yet, but also don't buy a 2bd condo with a kid on the way if that's not ideal for you.
Plan for ~5-7 years, or have a plan to convert it to a rental if your horizon is shorter than that.
They say 5-7 years is the rule of thumb in the industry to gain enough equity in the mortgage. The payments before that are heavy on interest.
We bought a 4/3.5, 2,000 sqft with a decent yard in 2018. The schools are awful, but we knew kids were 3+ years away and that the neighborhood already had some big plans that would increase the value quite a bit.
It's been perfect. We've got plenty of space for us, and will be adding one to the family later this year. Our plan is to have a second in 2-3 years, and have the dream house finished right before the first kid starts school. To make sure that's in our control, we just bought a 1 acre lot in the school district and location we want. We'll rent this current house if we can afford building without selling.
We'll be in here ~10 years before moving out. It's already up over 50% since 2018, I'm sure it'll clear 100% way before selling.
Someone told me “beware of underspending” on a house given the current state of inflation and that i May regret not getting the 800K home now
Rates are low but are quickly moving. My rate already moved from 2.99 to 3.5
Chief
I would say plan out further. Will you live in this city for 10-20 years or do you expect to move to a different city within 10 years. Real estate transactions are expensive. With realtor fees, moving, loans etc, your fees are 6%-8%. In a leveraged transaction, that can be 40% of your equity. In a up market people ignore it. If the market is flat, it’s really expensive. SO, will you live in this city for more than 10 years? If yes buy the more expensive house.
Hmm there’s no guarantee that in 10 years, I’d still be in the 800K home. I hope to get something better but my area generally starts at 1.2M for what we’re looking for
Pro
Buy the starter home townhouse without good school districts. You’ll save on tax and your mortgage will likely be equal or lesser than your rent. If you have no kids atm you’re waiting Atleast 6 years until school starts (minimum of few months of trying, 9 month pregnancy and 5 years of kid growing up)
Pro
Also, where do you live?
Combined income of 400k is 😯 wow
I make just 105
My husband makes around 80
My response was directly to EY. I didn’t want him/her to now say “let me get a law degree” 😂
I think a $800-$1M home at your income level is reasonable even while raising kids in the future with added costs. My wife and I live in a $1.1M home in the DC area with $350k household income. We made about $100k less when we first bought the house 6 years ago. With the income we have now, we send two kids to daycare costing $3800 a month and we’re still comfortable.
We did consider $600k townhome, but quickly realized we eventually wanted to upgrade when we have kids. This means paying the mortgage plus saving up on top of it. It ends up being the same as owning a $1M home from a cash flow perspective and skipping the step and things look even better when the property value goes up.
If we reach the $500k household income, we might seriously consider moving into a 1.2-1.4M home which would be a typical new-build 3500-5000sqft home in this area. Property tax rate here is 1% I think.
I still think it’s doable with your income. I just wish the fed. Govt would stop the $10k tax deduction limit nonsense for those living in high tax areas.