Stretching to Buy a home

[Anonymous]

Anonymous wrote:Why not compromise a bit. New homes in good school district can still be found around $1.4m - $1.5m

Some of us aren't willing to increase our commutes, especially when birth parents work in DC.

[Anonymous]

Anonymous wrote:Why not compromise a bit. New homes in good school district can still be found around $1.4m - $1.5m

+1. Personally I'd look for a well renovated older home because new builds in Arlington typcially have terrible backyards.

[Anonymous]

Have you considered doing a tear down?

[Anonymous]

Anonymous wrote:Have you considered doing a tear down?

Hard to tear down for 1.65. Most new builds start higher than that.

[Anonymous]

Anonymous wrote:Ignore current pandemic, this is far enough away to not need to consider.

We have a big down payment of $640k, which is all of our cash on hand. Healthy TSPs of about $800k.

We are both SES so make around $400k HHI

It seems like we could afford a $1.65M house, using that big down payment to bring down our monthly payment. Taxes would be a bit high but we are looking in Arlington so taxes are relatively low anyways.

I am floored to even think about spending this much, but to keep our constraints of commute and school we end up looking at $1.25M homes that need a bunch of renovation (new kitchen and bath, who knows what else, easily $250k or more on a 80 year old house) or just getting a newer home at $1.65M and not having to do any renovation.

Am I missing something? I hate spending this much, but we have lived with our kids in an apartment for all these years to save up this down payment and finally with pandemic we need to get a SFH but not kill ourselves with a commute (we won’t be teleworking 100% in our roles, guaranteed).

I think you've made a lot of bad decisions, honestly. You lived in an apartment for years to save up a massive down payment that is completely unnecessary. You should have bought a property many years ago.

It is financially irresponsible to put all of your cash on hand into a home as a down-payment. There is no advantage to reducing your liquidity like that. I'd stay on the low end max $1.5 given your financial history.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ignore current pandemic, this is far enough away to not need to consider.

We have a big down payment of $640k, which is all of our cash on hand. Healthy TSPs of about $800k.

We are both SES so make around $400k HHI

It seems like we could afford a $1.65M house, using that big down payment to bring down our monthly payment. Taxes would be a bit high but we are looking in Arlington so taxes are relatively low anyways.

I am floored to even think about spending this much, but to keep our constraints of commute and school we end up looking at $1.25M homes that need a bunch of renovation (new kitchen and bath, who knows what else, easily $250k or more on a 80 year old house) or just getting a newer home at $1.65M and not having to do any renovation.

Am I missing something? I hate spending this much, but we have lived with our kids in an apartment for all these years to save up this down payment and finally with pandemic we need to get a SFH but not kill ourselves with a commute (we won’t be teleworking 100% in our roles, guaranteed).

I think you've made a lot of bad decisions, honestly. You lived in an apartment for years to save up a massive down payment that is completely unnecessary. You should have bought a property many years ago.

It is financially irresponsible to put all of your cash on hand into a home as a down-payment. There is no advantage to reducing your liquidity like that. I'd stay on the low end max $1.5 given your financial history.

Oh come on. Renting to save money is not a bad decision! They're in a great spot. I wouldn't put all my cash in a house either but overall they're fine.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ignore current pandemic, this is far enough away to not need to consider.

We have a big down payment of $640k, which is all of our cash on hand. Healthy TSPs of about $800k.

We are both SES so make around $400k HHI

It seems like we could afford a $1.65M house, using that big down payment to bring down our monthly payment. Taxes would be a bit high but we are looking in Arlington so taxes are relatively low anyways.

I am floored to even think about spending this much, but to keep our constraints of commute and school we end up looking at $1.25M homes that need a bunch of renovation (new kitchen and bath, who knows what else, easily $250k or more on a 80 year old house) or just getting a newer home at $1.65M and not having to do any renovation.

Am I missing something? I hate spending this much, but we have lived with our kids in an apartment for all these years to save up this down payment and finally with pandemic we need to get a SFH but not kill ourselves with a commute (we won’t be teleworking 100% in our roles, guaranteed).

I think you've made a lot of bad decisions, honestly. You lived in an apartment for years to save up a massive down payment that is completely unnecessary. You should have bought a property many years ago.

It is financially irresponsible to put all of your cash on hand into a home as a down-payment. There is no advantage to reducing your liquidity like that. I'd stay on the low end max $1.5 given your financial history.

Stocking away $600k cash and $800k retirement is making bad decisions?

Maybe their $600k was a recent cash-out from trade accts.

Good Job OP for having the discipline to save so much. Good luck with your house search.

Also, I'm floooooored that having this kind of budget doesn't get you everything you want in Arlington. I've been away from NoVA for too long....

[Anonymous]

Only on this forum are people with $400K HHIs grappling with whether they should stretch to buy a house. You can't find a $1.2M house that meets your needs? Really? We make close to what you do and there is no way I would borrow $1M even though I could. Maybe we have low standards. At your income, you should be investing for retirement outside of your TSPs. A different perspective is take advantage of your position of having a $600K+ downpayment to take out less mortgage and use your high income to invest for early financial independence. Also, if I were to borrow $1M with children, I'd want to each spouse to have $1.5-$2M in life insurance and a good long-term disability policy that replaced my income until age 65.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ignore current pandemic, this is far enough away to not need to consider.

We have a big down payment of $640k, which is all of our cash on hand. Healthy TSPs of about $800k.

We are both SES so make around $400k HHI

It seems like we could afford a $1.65M house, using that big down payment to bring down our monthly payment. Taxes would be a bit high but we are looking in Arlington so taxes are relatively low anyways.

I am floored to even think about spending this much, but to keep our constraints of commute and school we end up looking at $1.25M homes that need a bunch of renovation (new kitchen and bath, who knows what else, easily $250k or more on a 80 year old house) or just getting a newer home at $1.65M and not having to do any renovation.

Am I missing something? I hate spending this much, but we have lived with our kids in an apartment for all these years to save up this down payment and finally with pandemic we need to get a SFH but not kill ourselves with a commute (we won’t be teleworking 100% in our roles, guaranteed).

I think you've made a lot of bad decisions, honestly. You lived in an apartment for years to save up a massive down payment that is completely unnecessary. You should have bought a property many years ago.

It is financially irresponsible to put all of your cash on hand into a home as a down-payment. There is no advantage to reducing your liquidity like that. I'd stay on the low end max $1.5 given your financial history.

Stocking away $600k cash and $800k retirement is making bad decisions?

Maybe their $600k was a recent cash-out from trade accts.

Good Job OP for having the discipline to save so much. Good luck with your house search.

Also, I'm floooooored that having this kind of budget doesn't get you everything you want in Arlington. I've been away from NoVA for too long....

I think it does. OP must have very high tastes.

[Anonymous]

By the way. Stretching doesn’t belong in the title for about a near 1%er buying a home in one of the wealthiest communities on the planet. And at less than 5 times income it isn’t the case anyway.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ignore current pandemic, this is far enough away to not need to consider.

We have a big down payment of $640k, which is all of our cash on hand. Healthy TSPs of about $800k.

We are both SES so make around $400k HHI

It seems like we could afford a $1.65M house, using that big down payment to bring down our monthly payment. Taxes would be a bit high but we are looking in Arlington so taxes are relatively low anyways.

I am floored to even think about spending this much, but to keep our constraints of commute and school we end up looking at $1.25M homes that need a bunch of renovation (new kitchen and bath, who knows what else, easily $250k or more on a 80 year old house) or just getting a newer home at $1.65M and not having to do any renovation.

Am I missing something? I hate spending this much, but we have lived with our kids in an apartment for all these years to save up this down payment and finally with pandemic we need to get a SFH but not kill ourselves with a commute (we won’t be teleworking 100% in our roles, guaranteed).

I think you've made a lot of bad decisions, honestly. You lived in an apartment for years to save up a massive down payment that is completely unnecessary. You should have bought a property many years ago.

It is financially irresponsible to put all of your cash on hand into a home as a down-payment. There is no advantage to reducing your liquidity like that. I'd stay on the low end max $1.5 given your financial history.

Stocking away $600k cash and $800k retirement is making bad decisions?

Maybe their $600k was a recent cash-out from trade accts.

Good Job OP for having the discipline to save so much. Good luck with your house search.

Also, I'm floooooored that having this kind of budget doesn't get you everything you want in Arlington. I've been away from NoVA for too long....

I think it does. OP must have very high tastes.

We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

[Anonymous]

Anonymous wrote:By the way. Stretching doesn’t belong in the title for about a near 1%er buying a home in one of the wealthiest communities on the planet. And at less than 5 times income it isn’t the case anyway.

So much confusing replies. One is aghast we are paying $6000/month, other PP are like, check your privilage.

All I know is I'm just floored to even consider spending this much for a house, but am so desperate for yard and a decent kitchen all reason has left me, hence the appeal to DCUM hive mind.

[Anonymous]

You make so much money, do you really want to feel strapped all the time?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ignore current pandemic, this is far enough away to not need to consider.

We have a big down payment of $640k, which is all of our cash on hand. Healthy TSPs of about $800k.

We are both SES so make around $400k HHI

It seems like we could afford a $1.65M house, using that big down payment to bring down our monthly payment. Taxes would be a bit high but we are looking in Arlington so taxes are relatively low anyways.

I am floored to even think about spending this much, but to keep our constraints of commute and school we end up looking at $1.25M homes that need a bunch of renovation (new kitchen and bath, who knows what else, easily $250k or more on a 80 year old house) or just getting a newer home at $1.65M and not having to do any renovation.

Am I missing something? I hate spending this much, but we have lived with our kids in an apartment for all these years to save up this down payment and finally with pandemic we need to get a SFH but not kill ourselves with a commute (we won’t be teleworking 100% in our roles, guaranteed).

I think you've made a lot of bad decisions, honestly. You lived in an apartment for years to save up a massive down payment that is completely unnecessary. You should have bought a property many years ago.

It is financially irresponsible to put all of your cash on hand into a home as a down-payment. There is no advantage to reducing your liquidity like that. I'd stay on the low end max $1.5 given your financial history.

Stocking away $600k cash and $800k retirement is making bad decisions?

Maybe their $600k was a recent cash-out from trade accts.

Good Job OP for having the discipline to save so much. Good luck with your house search.

Also, I'm floooooored that having this kind of budget doesn't get you everything you want in Arlington. I've been away from NoVA for too long....

I think it does. OP must have very high tastes.

We are aiming to stay east of Glebe Rd (for school zoning and commute), need 4 bedrooms up stairs for 3 kids, want a decent kitchen because we cook as a family all the time and would love to not be bumping into each other nonstop, and a decent yard. And not a busy road. We have looked for over a year, and there is a doughnut hole in pricing, lots of older homes needing new kitchens and baths for $1.2-$1.3 and then nothing until $1.5M (which is a new home without a yard that PP referred to) and then $1.6M for a package of a decent home (and by decent I don't need new, I'm happy with 10 years old which is still very new but won't need updates). Our current rental is from the 90s, and all the cabinets are literally falling apart, the bathroom floors have layers and layers of grout an cracked tiles. I know an older home will need updates.

For the older homes I'm budgeting $200k because we will want to put laundry upstairs, redo the 50s bathrooms, and probably need to reconfigure and expand the kitchen (either in addition or into existing space in the house). And I'm sure there will be $20k of random work like old water heater and roof and what not from deferred maintenance.

If you can point me to recent sales or a current house that meets these goals for $1.2M. But its not like we are looking for Corinthian leather or something.

You will not be slumming it if your home is older than 10 years old, it has laundry in the basement, a small yard, or a dated kitchen or bathroom. Unless you have unlimited funds, you cannot have it all. Forty million people have filed or unemployment and you are complaining about not being able to find a $1.3 million home that meets your needs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:By the way. Stretching doesn’t belong in the title for about a near 1%er buying a home in one of the wealthiest communities on the planet. And at less than 5 times income it isn’t the case anyway.

So much confusing replies. One is aghast we are paying $6000/month, other PP are like, check your privilage.

All I know is I'm just floored to even consider spending this much for a house, but am so desperate for yard and a decent kitchen all reason has left me, hence the appeal to DCUM hive mind.

I'm sorry but you can afford to buy a house anywhere in the DC area, so this is very easy even in the elite neighborhoods you're looking in. Just make a decision if you want to do renovations. That seems to be the issue. Otherwise, buy a new home in the $1.6M+ range which you can easily afford with your income and asset position.