Would you buy a 1.2 million dollar home

[Anonymous]

No way! When we made that much we stayed in our $375k townhouse (we’ve moved but it’s now with about $500k) until we started making much more. It’s nice not to worry about money and not be house poor. Although we were paying for daycare at the time. So it’s up to you how comfortable you feel.

[Anonymous]

Anonymous wrote:OP: it is one income which is likely to increase in the future. Not only savings. Would have another 100k insavings outside of 401k and 529’s. Not the only home we could buy, could spend less but don’t wants to move to far out of the metro area.

What will be your monthly PITI compared to your take home, after 401k income?

[Anonymous]

We are you, only at $325K. We paid 1.1 mil, PITI 4500 per month. This is one income. 30 year mortgage. We're less than a year into it and are facing sudden unemployment. We have 2 years of savings liquid to live off of until job is replaced. If you don't have a huge savings to cover sudden unemployment (and it can happen to anyone at any time), don't do it. Like you, debt free, kids in public schools, monthly costs are about 7K with all expenses) I regret buying this house now and will sell and downsize in two years - lesson learned.

Even if we didn't lose the job, we now understand as first time buyers how much influence our real estate agent and mortgage broker had over how much we'd spend on a house. Maybe you are way more experienced than we are and can pull it off. If you're really young and have great job prospects and savings, with plenty of working years left, then maybe it's right for you?

[Anonymous]

This is an interesting thread. We are looking to spend the same amount in three years. Income 325, down payment of $500k. I may rethink.

[Anonymous]

Anonymous wrote:We are you, only at $325K. We paid 1.1 mil, PITI 4500 per month. This is one income. 30 year mortgage. We're less than a year into it and are facing sudden unemployment. We have 2 years of savings liquid to live off of until job is replaced. If you don't have a huge savings to cover sudden unemployment (and it can happen to anyone at any time), don't do it. Like you, debt free, kids in public schools, monthly costs are about 7K with all expenses) I regret buying this house now and will sell and downsize in two years - lesson learned.

Even if we didn't lose the job, we now understand as first time buyers how much influence our real estate agent and mortgage broker had over how much we'd spend on a house. Maybe you are way more experienced than we are and can pull it off. If you're really young and have great job prospects and savings, with plenty of working years left, then maybe it's right for you?

If you only have 7k of monthly fixed expenses, why can’t your employed spouse pay the bills while the other looks for a job?

[Anonymous]

Anonymous wrote:OP: it is one income which is likely to increase in the future. Not only savings. Would have another 100k insavings outside of 401k and 529’s. Not the only home we could buy, could spend less but don’t wants to move to far out of the metro area.

I wouldn’t do it on one income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are you, only at $325K. We paid 1.1 mil, PITI 4500 per month. This is one income. 30 year mortgage. We're less than a year into it and are facing sudden unemployment. We have 2 years of savings liquid to live off of until job is replaced. If you don't have a huge savings to cover sudden unemployment (and it can happen to anyone at any time), don't do it. Like you, debt free, kids in public schools, monthly costs are about 7K with all expenses) I regret buying this house now and will sell and downsize in two years - lesson learned.

Even if we didn't lose the job, we now understand as first time buyers how much influence our real estate agent and mortgage broker had over how much we'd spend on a house. Maybe you are way more experienced than we are and can pull it off. If you're really young and have great job prospects and savings, with plenty of working years left, then maybe it's right for you?

If you only have 7k of monthly fixed expenses, why can’t your employed spouse pay the bills while the other looks for a job?

They only have one income.

[Anonymous]

We have a 180k income and bought a 420k house with 20% down

People are crazy

[Anonymous]

No. We make a little more $280K over two incomes, which are very stable and will go up slightly, but that's still too much mortgage for my comfort. I have no interest in being house poor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are you, only at $325K. We paid 1.1 mil, PITI 4500 per month. This is one income. 30 year mortgage. We're less than a year into it and are facing sudden unemployment. We have 2 years of savings liquid to live off of until job is replaced. If you don't have a huge savings to cover sudden unemployment (and it can happen to anyone at any time), don't do it. Like you, debt free, kids in public schools, monthly costs are about 7K with all expenses) I regret buying this house now and will sell and downsize in two years - lesson learned.

Even if we didn't lose the job, we now understand as first time buyers how much influence our real estate agent and mortgage broker had over how much we'd spend on a house. Maybe you are way more experienced than we are and can pull it off. If you're really young and have great job prospects and savings, with plenty of working years left, then maybe it's right for you?

If you only have 7k of monthly fixed expenses, why can’t your employed spouse pay the bills while the other looks for a job?

They only have one income.

Well of course having an expensive mortgage on one income is dumb.

[Anonymous]

Yes, I would. Unless you are driving two $1k a month cars, taking multiple lavish vacations and have nothing saved for college, it should be more than enough.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are you, only at $325K. We paid 1.1 mil, PITI 4500 per month. This is one income. 30 year mortgage. We're less than a year into it and are facing sudden unemployment. We have 2 years of savings liquid to live off of until job is replaced. If you don't have a huge savings to cover sudden unemployment (and it can happen to anyone at any time), don't do it. Like you, debt free, kids in public schools, monthly costs are about 7K with all expenses) I regret buying this house now and will sell and downsize in two years - lesson learned.

Even if we didn't lose the job, we now understand as first time buyers how much influence our real estate agent and mortgage broker had over how much we'd spend on a house. Maybe you are way more experienced than we are and can pull it off. If you're really young and have great job prospects and savings, with plenty of working years left, then maybe it's right for you?

If you only have 7k of monthly fixed expenses, why can’t your employed spouse pay the bills while the other looks for a job?

One income, spouse became unemployed and is looking for a new job. Spouse is highly employable (example: within three weeks of unemployment he has 5 viable job prospects) and enough savings for several years before we have to dip into brokerage accounts. By then, we'll have sold the house and downsized, though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are you, only at $325K. We paid 1.1 mil, PITI 4500 per month. This is one income. 30 year mortgage. We're less than a year into it and are facing sudden unemployment. We have 2 years of savings liquid to live off of until job is replaced. If you don't have a huge savings to cover sudden unemployment (and it can happen to anyone at any time), don't do it. Like you, debt free, kids in public schools, monthly costs are about 7K with all expenses) I regret buying this house now and will sell and downsize in two years - lesson learned.

Even if we didn't lose the job, we now understand as first time buyers how much influence our real estate agent and mortgage broker had over how much we'd spend on a house. Maybe you are way more experienced than we are and can pull it off. If you're really young and have great job prospects and savings, with plenty of working years left, then maybe it's right for you?

If you only have 7k of monthly fixed expenses, why can’t your employed spouse pay the bills while the other looks for a job?

They only have one income.

Well of course having an expensive mortgage on one income is dumb.

It's not that dumb if they have a lot of savings and the earner is a professional with future prospects if they get canned (like a doctor).

[Anonymous]

Anonymous wrote:We have a 180k income and bought a 420k house with 20% down

People are crazy

People aren't crazy. They want quality of life, not having to commute 2 hours per day, want a walkable city and proximity to work and good schools. And that costs a hell of a lot more than 420K and people are fine with it because they get the life they want. Some of us think you're crazy for living like shit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have a 180k income and bought a 420k house with 20% down

People are crazy

People aren't crazy. They want quality of life, not having to commute 2 hours per day, want a walkable city and proximity to work and good schools. And that costs a hell of a lot more than 420K and people are fine with it because they get the life they want. Some of us think you're crazy for living like shit.

Yeah, maybe, but we never have to think about money

We like where we live