How much can we afford to spend on home?

[Anonymous]

Anonymous wrote:Put down $100k and get a $900k house at historically low interest rates. The $100k will give you a far greater return than any other investment as the house appreciates, even if a low amount.

No brainer.

In the long term, housing prices stay in tune with wage inflation. That was not the case in the 2000's, but it is factually, true. Do NOT consider your home as an "investment." Your money is not working for you. You are living in your money/debt.

Perhaps read a few books from the library before making the biggest financial commitment of your life. I mean that very seriously. It's SOOO easy to get swept away by beautiful finishings and fixtures. Please read up on "The Smartest Money Book You'll Ever Read" and "Your Money Ratios." It's a weekend's worth of your time and it will save you thousands of dollars by giving you info to make good choices.

[Anonymous]

Anonymous wrote:I disagree. Don't go over $800. But really, the issue is your take home v. The payments. Give us those numbers and we can help better. Also, are you looking in a school district that will likely keep your kids out of private?

This is shitty advice. $800 is only 2.86 times gross. This is an entirely arbitrary figure. There are various calculators out there and there's a reason the bank pre-approved for 1.2 mil.

[Anonymous]

How much do you owe on your student loans? Would it be possible to pay them off? Then you'd have an extra $1000 to either replenish your savings or put towards a mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I disagree. Don't go over $800. But really, the issue is your take home v. The payments. Give us those numbers and we can help better. Also, are you looking in a school district that will likely keep your kids out of private?

This is shitty advice. $800 is only 2.86 times gross. This is an entirely arbitrary figure. There are various calculators out there and there's a reason the bank pre-approved for 1.2 mil.

I was preapproved for 1.6. 600k leaves us with a comfortable lifestyle. But everyone has their own priorities. I prioritize financial flexibility and experiences. Some people prefer being stuck in a huge house. Your call.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I disagree. Don't go over $800. But really, the issue is your take home v. The payments. Give us those numbers and we can help better. Also, are you looking in a school district that will likely keep your kids out of private?

This is shitty advice. $800 is only 2.86 times gross. This is an entirely arbitrary figure. There are various calculators out there and there's a reason the bank pre-approved for 1.2 mil.

There's a reason I can supersize my fries too but.,..

It's really just a question of tradeoffs: big house or more financial cushion, subzero fridge or more vacations, etc. It's not shittt advice, it's just advice.

[Anonymous]

I wouldn't spend that much on a home! We spent 750k on a home and do not have any student loans or childcare expenses. We make around 325k. A 1.2 million dollar home means one person's job is going to pay for the house. Meaning you're house poor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Put down $100k and get a $900k house at historically low interest rates. The $100k will give you a far greater return than any other investment as the house appreciates, even if a low amount.

No brainer.

In the long term, housing prices stay in tune with wage inflation. That was not the case in the 2000's, but it is factually, true. Do NOT consider your home as an "investment." Your money is not working for you. You are living in your money/debt.

Perhaps read a few books from the library before making the biggest financial commitment of your life. I mean that very seriously. It's SOOO easy to get swept away by beautiful finishings and fixtures. Please read up on "The Smartest Money Book You'll Ever Read" and "Your Money Ratios." It's a weekend's worth of your time and it will save you thousands of dollars by giving you info to make good choices.

Dipshit, if a $900k house appreciates with wage inflation, that is a return on your 15% cash investment financed at tax beneficial 3%.

[Anonymous]

1 million, check out pimmit hills they have some really decent new homes. The schools, location and metro access is excellent.

[Anonymous]

Anonymous wrote:How much do you owe on your student loans? Would it be possible to pay them off? Then you'd have an extra $1000 to either replenish your savings or put towards a mortgage.

$80k at 3.5%

[Anonymous]

OP, with the same HHI and pretty similar expenses and prospects as you, we bought a house for 950k 2 years ago. Interest rates are still low so do not deny yourself a nice house in a good school district that you can actually afford. You should run the numbers: importantly, the mortgage tax and property tax deductions make a big difference in reducing your taxes.

[Anonymous]

Anonymous wrote:I wouldn't spend that much on a home! We spent 750k on a home and do not have any student loans or childcare expenses. We make around 325k. A 1.2 million dollar home means one person's job is going to pay for the house. Meaning you're house poor.

If you want to be in a nice area (close to DC for example, safe, good school district), 750-800k will not get you far. And most importantly, you can afford a more expensive house. Why live below your means, a house is a long term purchase, don't regret it by buying below your means.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Put down $100k and get a $900k house at historically low interest rates. The $100k will give you a far greater return than any other investment as the house appreciates, even if a low amount.

No brainer.

In the long term, housing prices stay in tune with wage inflation. That was not the case in the 2000's, but it is factually, true. Do NOT consider your home as an "investment." Your money is not working for you. You are living in your money/debt.

Perhaps read a few books from the library before making the biggest financial commitment of your life. I mean that very seriously. It's SOOO easy to get swept away by beautiful finishings and fixtures. Please read up on "The Smartest Money Book You'll Ever Read" and "Your Money Ratios." It's a weekend's worth of your time and it will save you thousands of dollars by giving you info to make good choices.

You make this comment a lot, but I disagree with your statement. You may think it's a more conservative investment, but it's still an investment. And some people will do much better than others.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I wouldn't spend that much on a home! We spent 750k on a home and do not have any student loans or childcare expenses. We make around 325k. A 1.2 million dollar home means one person's job is going to pay for the house. Meaning you're house poor.

If you want to be in a nice area (close to DC for example, safe, good school district), 750-800k will not get you far. And most importantly, you can afford a more expensive house. Why live below your means, a house is a long term purchase, don't regret it by buying below your means.

Because I want to be able to stay home with kids if I want to and not work to pay for a mortgage.

Because we want a second home and to retire early.

Because we bought a rowhouse in DC.

Because we love to travel and enjoy dining out and events in DC.

Because we like to invest in the stock market. We already own rentaln properties.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I disagree. Don't go over $800. But really, the issue is your take home v. The payments. Give us those numbers and we can help better. Also, are you looking in a school district that will likely keep your kids out of private?

This is shitty advice. $800 is only 2.86 times gross. This is an entirely arbitrary figure. There are various calculators out there and there's a reason the bank pre-approved for 1.2 mil.

oh my... a fool is born every day.

The reason the BANK or a mortgage broker approves you for $X loan is b/c they stand to gain when you take out a bigger loan. They also don't care whether you save for retirement, save for kids college, go on vacation, buy clothes, pay for car repairs or pay your gas bill. That is not their concern. That should be your concern. If you want to off-load the decision-making, then at least off-load it to someone who has nothing to gain from the decision (i.e. a financial advisor/author, your mother?, your neighbor? anyone other than "the bank").

Hey fox... do you think I should put the chickens in a henhouse with a lock or without???

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Put down $100k and get a $900k house at historically low interest rates. The $100k will give you a far greater return than any other investment as the house appreciates, even if a low amount.

No brainer.

In the long term, housing prices stay in tune with wage inflation. That was not the case in the 2000's, but it is factually, true. Do NOT consider your home as an "investment." Your money is not working for you. You are living in your money/debt.

Perhaps read a few books from the library before making the biggest financial commitment of your life. I mean that very seriously. It's SOOO easy to get swept away by beautiful finishings and fixtures. Please read up on "The Smartest Money Book You'll Ever Read" and "Your Money Ratios." It's a weekend's worth of your time and it will save you thousands of dollars by giving you info to make good choices.

You make this comment a lot, but I disagree with your statement. You may think it's a more conservative investment, but it's still an investment. And some people will do much better than others.

You can "disagree" with what I "think" -- but your disagreement is based on nothing more than your opinion. The data hold otherwise. You don't have to agree with me. That's the beauty of knowing I'm right -- I have data and the support of people with PhD's in finance and ecomonics on my side. So I don't really care whether you agree or disagree. Not only am I right, but I'll also be richer for it! Living well is the best revenge. Enjoy!