Feeling stuck in starter home TH

[Anonymous]

Keep the TH, and just upgrade your lifestyle. More vacations, nicer furniture, put the kids in fun extracurricular activities.

Bigger house is more $$$ than just the mortgage increase. Higher electric/gas/lawn service/housecleaning bills, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

DP and some of us are hit with the AMT.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Yeah ridiculous how people assume they know better than the actual poster who knows their situation.

Ah another IMF/WB/IDB employee. Yeah that is certainly a downside, certainly can't deduct anything when the actual income tax owed is 0. That's the big downside of working there, sure we don't pay taxes but a) salaries given age of employees are super low imo even when taking into account it's net and b) because no tax, can't deduct all the beautiful things you can deduct for.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The advice is to accumulate things until you are age 50 and then you should start shedding things from 50 onward, including downsizing your home. You are in the right size home now. Make do.

How old is this advice? My youngest child will be 9 when I'm 50. Do I really start downsizing when I've still got a kid in elementary school? I think it should be more like 60 for those of us who had children into our 40s (mine was not planned).

I live in a rowhouse but plan to upsize when I get older and the kids are in college. That way we can have space to host big family get togethers, etc.

[Anonymous]

Anonymous wrote:How do you deal with being stuck in a starter house that you can’t let go of due to the insanely low monthly payment? Technically can afford a more ideal home (2x the value of our TH) but the monthly payments will be 4x due to taxes/mortgage rates. I cannot wrap my head around paying 4x our current amount for housing, even though technically our income would allow it (would still be under 35% after tax income).

How much equity have you built up in your townhouse? After selling our starter home (also a TH), we were able to buy a much more expensive SFH and our PITI went up by about 50%. We did move out a little further so that we get more bang for our buck.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Sorry but become a citizen and stop whining

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Yeah ridiculous how people assume they know better than the actual poster who knows their situation.

Ah another IMF/WB/IDB employee. Yeah that is certainly a downside, certainly can't deduct anything when the actual income tax owed is 0. That's the big downside of working there, sure we don't pay taxes but a) salaries given age of employees are super low imo even when taking into account it's net and b) because no tax, can't deduct all the beautiful things you can deduct for.

Boo hoo you don't pay taxes

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Sorry but become a citizen and stop whining

Because it's just THAT easy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Sorry but become a citizen and stop whining

I am not whining and I sure as hell don’t want to become a US citizen. I was just reminding people that there are literally thousands of people in this area who cannot deduct any mortgage interest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Yeah ridiculous how people assume they know better than the actual poster who knows their situation.

Ah another IMF/WB/IDB employee. Yeah that is certainly a downside, certainly can't deduct anything when the actual income tax owed is 0. That's the big downside of working there, sure we don't pay taxes but a) salaries given age of employees are super low imo even when taking into account it's net and b) because no tax, can't deduct all the beautiful things you can deduct for.

Boo hoo you don't pay taxes

Yeah if I made like 250k I would be happy with it, but frankly given the area (hcol), slow career progression and etc, my measly 140k for my age (early 30) just does not cut it (especially since it will grow slowly too). Add to that the lack of ability to move to a different firm (visa related) and the whole not paying taxes is not that great when your net is meh

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

Yes. We all know how you feel about your host country. The walls have ears I’m sure you realize.
It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Sorry but become a citizen and stop whining

I am not whining and I sure as hell don’t want to become a US citizen. I was just reminding people that there are literally thousands of people in this area who cannot deduct any mortgage interest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are in a similar situation. We can afford another house but can’t justify tripling our mortgage, with majority of it going toward interest. As PP suggested above, we decided to do some updates and decorate to help us like our current house more. I am trying to see the positives. Can’t beat the location and we really do not need that much more space.

Interest is deductible

It isn’t for us.

Incorrect, get a larger mortgage, it basically gives you 1/2 back so it's not really 5k more a month more like 3350 more a month when considering the tax deduction

You think you know everyone's situation? Our mortgage is 1 mil and we cannot deduct anything, because of the nature of our employment and visa situation.

Yeah ridiculous how people assume they know better than the actual poster who knows their situation.

Ah another IMF/WB/IDB employee. Yeah that is certainly a downside, certainly can't deduct anything when the actual income tax owed is 0. That's the big downside of working there, sure we don't pay taxes but a) salaries given age of employees are super low imo even when taking into account it's net and b) because no tax, can't deduct all the beautiful things you can deduct for.

Boo hoo you don't pay taxes

Yeah if I made like 250k I would be happy with it, but frankly given the area (hcol), slow career progression and etc, my measly 140k for my age (early 30) just does not cut it (especially since it will grow slowly too). Add to that the lack of ability to move to a different firm (visa related) and the whole not paying taxes is not that great when your net is meh

Measly 140k? Not paying taxes? You’re rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The advice is to accumulate things until you are age 50 and then you should start shedding things from 50 onward, including downsizing your home. You are in the right size home now. Make do.

How old is this advice? My youngest child will be 9 when I'm 50. Do I really start downsizing when I've still got a kid in elementary school? I think it should be more like 60 for those of us who had children into our 40s (mine was not planned).

I live in a rowhouse but plan to upsize when I get older and the kids are in college. That way we can have space to host big family get togethers, etc.

+1. We raised two kids in 1500 sq ft, and I always thought it was fine. Cozy and pleasant. I liked having my kids underfoot. But now that they are young adults, it feels too small. They come home with friends, girlfriends, we end up with 6-8 adults hanging around and we don't have any space for everyone to sit and watch a game, and our dining room is very tight for 8. I want to have a place with plenty of room for them and their partners and eventually kids (if they have them), so I'm not thinking about downsizing, I want to upsize.