Would buying an expensive house be a bad choice?

[Anonymous]

Anonymous wrote:OP here...we do live very frugally. In addition, we got part of the money from inheritance and some of it from investments. The reason I don't think a renovation on our current house will work is we need an extra bathroom and would like the laundry to be on the second floor. Currently, the two kids share a bathroom and it is also the bathroom for guests. It is a super tiny bathroom with almost no room to maneuver. I also have to go up and down stairs to do laundry which is tucked in the tiny mud room between the garage and the the house (can't open door to garage and laundry door at same time and I got hit multiple times when I was taking out laundry and someone walked through the door to the garage). However, we have an HOA so having any additions won't be approved. We still want to stay in our school district and the houses here are expensive so going much below 1.5 mil will be hard. It will be more of a forever home (at least another 25 years) and we will sell it and move to something cheaper for retirement. The reason for the question is I see a lot of posts where people think it is insane to pay so much each month for housing so I wanted to see if there is something I did not think about when considering doing this.

I second the humblebrag poster.

[Anonymous]

Anonymous wrote:Q: "Am I rich enough to move into an expensive house with a lower mortgage payment than we have currently?"

A: Yes, you are rich enough.

Seems like humblebrag to me.

Exactly. So sick of these type posts! Get real!

[Anonymous]

Anonymous wrote:Sorry. Think it is a bit much to have that expensive of a home with your income and savings.

huh?
she has a $300k income and is looking at a $480k mortgage.
that is 150% reasonable.

[Anonymous]

You don't list your ages, but we're 41 and 35 and have around the same HHI as you. We only have 500k in equity in our home, but have 1.5MM in cash and investments. We would never consider a home this expensive because I don't think we'd hit our retirement goals if we bought one. We're currently in a 15 year mortgage with about 10 years to go and can't wait to get that yoke off our necks. Moving into a fancier home would just reset the clock, but I can understand the appeal. We certainly look at those big homes from time to time and think hard on it.

Good luck!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sorry. Think it is a bit much to have that expensive of a home with your income and savings.

huh?
she has a $300k income and is looking at a $480k mortgage.
that is 150% reasonable.

It isn't the price of the home or the mortgage amount, rather the rest of OP's investments and savings. Putting that kind of money in a single asset when it is a huge percentage of net worth is risky.