Buy a second house now when engaged or wait until we need the space?

[Anonymous]

We're getting married in 2024 both around 30 and I currently own a TH that I bought when I was 23 with a very low monthly payment relative to our income (about 6% of take home pay). It's near a good public elementary school, and we probably won't have kids for another few years, so there's absolutely no need to upgrade to a SFH for a long time. But I am feeling a sense of FOMO that if we wait until we actually need a SFH in 5-10 years, we will be priced out by then. I make enough money and have a few hundred thousand liquid for a down payment to buy a SFH in the low 1M's, but I'm also risk averse and am accustomed to a low housing payment. Also haven't decided yet if I would sell this property or rent it out when we move up.

What would you do in this situation where you are young, want kids and a SFH in the future, and are able to afford a SFH but don't need it right now? I'm afraid a 1M house will turn in to 1.5M when we are ready, so I am tempted to take the plunge.

[Anonymous]

WAIT. You sounds super well positioned to buy a house in a few years' time.

In your shoes, I'd only buy if I saw my dream house come up in my ideal neighborhood. You sound like you could snap up what you want when it comes around, so I'd wait.

[Anonymous]

Anonymous wrote:WAIT. You sounds super well positioned to buy a house in a few years' time.

In your shoes, I'd only buy if I saw my dream house come up in my ideal neighborhood. You sound like you could snap up what you want when it comes around, so I'd wait.

Why do you say I sound well positioned? Do you think my income will go way up? I'm hopeful on that but I work in tech (high initial salaries but they often plateau early) so not entirely sure I have much room for income growth beyond what I make now.

[Anonymous]

Anonymous wrote:WAIT. You sounds super well positioned to buy a house in a few years' time.

In your shoes, I'd only buy if I saw my dream house come up in my ideal neighborhood. You sound like you could snap up what you want when it comes around, so I'd wait.

This---keep looking and just plan to save, save save. You are 10 years from needing a larger place. So sit tight and enjoy the Lower maintenance on a smaller place. You have even said it has a good ES, so you could be good if needed with staying there with kids in school. If housing costs more later, your current place will also sell for much more. You are already in the market, there is no reason to upsize when you do not need it.

[Anonymous]

You sounds very smart. Wait rates will come down. They are so high right now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:WAIT. You sounds super well positioned to buy a house in a few years' time.

In your shoes, I'd only buy if I saw my dream house come up in my ideal neighborhood. You sound like you could snap up what you want when it comes around, so I'd wait.

This---keep looking and just plan to save, save save. You are 10 years from needing a larger place. So sit tight and enjoy the Lower maintenance on a smaller place. You have even said it has a good ES, so you could be good if needed with staying there with kids in school. If housing costs more later, your current place will also sell for much more. You are already in the market, there is no reason to upsize when you do not need it.

The only issue with appreciating houses, is that a cheaper house won't appreciate as much as a more expensive house esp comparing TH to SFH. My TH went up 100k during covid while all the SFH's near me went up 200-250k.

[Anonymous]

Anonymous wrote:We're getting married in 2024 both around 30 and I currently own a TH that I bought when I was 23 with a very low monthly payment relative to our income (about 6% of take home pay). It's near a good public elementary school... have a few hundred thousand liquid for a down payment to buy a SFH in the low 1M's...

What would you do in this situation where you are young, want kids and a SFH in the future, and are able to afford a SFH but don't need it right now? I'm afraid a 1M house will turn in to 1.5M when we are ready, so I am tempted to take the plunge.

You know target areas, and keep a pulse on listings. If youre looking in some locations there are not lots of newer developement houses that perptually pop on and off the market [ie Ashburn]. Go for a property that checks most of your boxes and would only need non structural- no walls removed, no moving plumbing/electrical. Since you have a great TH location you have the buyer luxury of waiting for the right property