$2M home w/ $160k HHI?

[Anonymous]

Anonymous wrote:We spent slightly less (1.8) and make slightly more (~$200) and it’s tight but doable. Maintenance costs are the biggest unknown and you definitely pay a wealth tax having an expensive home. Quotes for home repairs are always high. This year we had to replace a few windows, gutters, and a water heater. About $15K.

If I had an even more expensive house and even less income it would feel impossible. The definition of house poor....

I’m interested in hearing more. We make 2x the amount and are springing for $2M. We expect to eventually rent out the basement for $2k, but not relying on that to pay the mortgage or daily expenses. I know it will be tight for a while, just curious if you regret your purchase. Every which way I calculate it, and looking at worst case scenarios, we can make it work.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We spent slightly less (1.8) and make slightly more (~$200) and it’s tight but doable. Maintenance costs are the biggest unknown and you definitely pay a wealth tax having an expensive home. Quotes for home repairs are always high. This year we had to replace a few windows, gutters, and a water heater. About $15K.

If I had an even more expensive house and even less income it would feel impossible. The definition of house poor....

I’m interested in hearing more. We make 2x the amount and are springing for $2M. We expect to eventually rent out the basement for $2k, but not relying on that to pay the mortgage or daily expenses. I know it will be tight for a while, just curious if you regret your purchase. Every which way I calculate it, and looking at worst case scenarios, we can make it work.

Don’t regret it. In reality our taxes/instance is the same as what a total mortgage would be had we bought say a 750K house with a mortgage and not used inheritance for this. We have a buffer in savings which we retained and can still eat out; take vacation, etc. I don’t feel deprived and love our house, our neighborhood, and being close to work (when we could actually go to work!). The way I look at it is we’re living the same as we would have had I not inherited money. The money just bought us a better house...

[Anonymous]

Anonymous wrote:I made $2.2M on the stock market. We have a HHI of $160k. Would it be insane to pay all cash for a $2M home? Yes, I realize there are taxes, insurance, closing costs etc. Can you still own a home with that price tag with a $160k HHI? Would taxes, insurance, etc. be untenable while essentially having no mortgage?

I don't really care about wiping out my brokerage account to $100-200k. Plenty saved in IRAs and 401ks. What else should I use the money for at this point? No other debts. Still lots more time to rebuild my brokerage account, and I actually do want to remove a lot my wealth from equities into real estate just to diversify.

That's not diversifying. Diversifying in real estate = buying into REITs.

[Anonymous]

Why couldn’t you just stick to a $1.4-1.6M house to give yourself more cushion?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We spent slightly less (1.8) and make slightly more (~$200) and it’s tight but doable. Maintenance costs are the biggest unknown and you definitely pay a wealth tax having an expensive home. Quotes for home repairs are always high. This year we had to replace a few windows, gutters, and a water heater. About $15K.

If I had an even more expensive house and even less income it would feel impossible. The definition of house poor....

I’m interested in hearing more. We make 2x the amount and are springing for $2M. We expect to eventually rent out the basement for $2k, but not relying on that to pay the mortgage or daily expenses. I know it will be tight for a while, just curious if you regret your purchase. Every which way I calculate it, and looking at worst case scenarios, we can make it work.

If you are factoring our renting the basement you really can’t afford it. Also very tack to live in such a neighborhood and turn your place
Into a multi family unit. Your neighbors will hate you. You don’t really belong. Stop.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We spent slightly less (1.8) and make slightly more (~$200) and it’s tight but doable. Maintenance costs are the biggest unknown and you definitely pay a wealth tax having an expensive home. Quotes for home repairs are always high. This year we had to replace a few windows, gutters, and a water heater. About $15K.

If I had an even more expensive house and even less income it would feel impossible. The definition of house poor....

I’m interested in hearing more. We make 2x the amount and are springing for $2M. We expect to eventually rent out the basement for $2k, but not relying on that to pay the mortgage or daily expenses. I know it will be tight for a while, just curious if you regret your purchase. Every which way I calculate it, and looking at worst case scenarios, we can make it work.

If you are factoring our renting the basement you really can’t afford it. Also very tack to live in such a neighborhood and turn your place
Into a multi family unit. Your neighbors will hate you. You don’t really belong. Stop.

Why would neighbors care if you rent out an asset? If it’s there why not make money off of it?

[Anonymous]

I wouldn't buy now considering how much real estate stock seems to be fluctuating in urban areas

[Anonymous]

Choose a 2ml house very carefully, make sure in will increase value, or at least not decline in value. You can def do it. You are a smart guy and 160k HHI is just your starting salary. You will earn more. Enjoy life while you still can!

[Anonymous]

OP hard earned 2 million over ten years. He deserves to enjoy it! Go for it!

[Anonymous]

Anonymous wrote:What are the taxes on the home? At that price, they may Be like an income appropriate mortgage that will never end. So at local rates around here that’s $20k per year on taxes alone. Plus upkeep, dues, etc. Why be permanently house poor? Buy a million dollar house and keep some money in the bank.

One million home will really make you house poor cause it requires constant attention. 2 million gets you something more decent.

[Anonymous]

If house cleaning would not fit in the budget, I would not be happy with having to clean such a large place myself.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We spent slightly less (1.8) and make slightly more (~$200) and it’s tight but doable. Maintenance costs are the biggest unknown and you definitely pay a wealth tax having an expensive home. Quotes for home repairs are always high. This year we had to replace a few windows, gutters, and a water heater. About $15K.

If I had an even more expensive house and even less income it would feel impossible. The definition of house poor....

I’m interested in hearing more. We make 2x the amount and are springing for $2M. We expect to eventually rent out the basement for $2k, but not relying on that to pay the mortgage or daily expenses. I know it will be tight for a while, just curious if you regret your purchase. Every which way I calculate it, and looking at worst case scenarios, we can make it work.

If you are factoring our renting the basement you really can’t afford it. Also very tack to live in such a neighborhood and turn your place
Into a multi family unit. Your neighbors will hate you. You don’t really belong. Stop.

Why would neighbors care if you rent out an asset? If it’s there why not make money off of it?

Most neighbors don’t care. I say 99 percent. But in my condo complex we had this old busy body would call 911 to report a break in if she saw someone new entering property. Funny she stopped AirBnb in building in a single week.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We spent slightly less (1.8) and make slightly more (~$200) and it’s tight but doable. Maintenance costs are the biggest unknown and you definitely pay a wealth tax having an expensive home. Quotes for home repairs are always high. This year we had to replace a few windows, gutters, and a water heater. About $15K.

If I had an even more expensive house and even less income it would feel impossible. The definition of house poor....

I’m interested in hearing more. We make 2x the amount and are springing for $2M. We expect to eventually rent out the basement for $2k, but not relying on that to pay the mortgage or daily expenses. I know it will be tight for a while, just curious if you regret your purchase. Every which way I calculate it, and looking at worst case scenarios, we can make it work.

If you are factoring our renting the basement you really can’t afford it. Also very tack to live in such a neighborhood and turn your place
Into a multi family unit. Your neighbors will hate you. You don’t really belong. Stop.

Why would neighbors care if you rent out an asset? If it’s there why not make money off of it?

In neighborhoods with houses of $2 million, trust me when I say that there would be a huge stigma to renting out the basement. Your neighbors will look down on you and assume you are house poor. Trust me, as I speak from personal experience (as the person who was house poor).

[Anonymous]

Taxes, insurance, and upkeep on a $2M home with no mortgage would be nearly the same you'd pay for rent these days on a modest apartment. Not that big of a deal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We spent slightly less (1.8) and make slightly more (~$200) and it’s tight but doable. Maintenance costs are the biggest unknown and you definitely pay a wealth tax having an expensive home. Quotes for home repairs are always high. This year we had to replace a few windows, gutters, and a water heater. About $15K.

If I had an even more expensive house and even less income it would feel impossible. The definition of house poor....

I’m interested in hearing more. We make 2x the amount and are springing for $2M. We expect to eventually rent out the basement for $2k, but not relying on that to pay the mortgage or daily expenses. I know it will be tight for a while, just curious if you regret your purchase. Every which way I calculate it, and looking at worst case scenarios, we can make it work.

If you are factoring our renting the basement you really can’t afford it. Also very tack to live in such a neighborhood and turn your place
Into a multi family unit. Your neighbors will hate you. You don’t really belong. Stop.

Why would neighbors care if you rent out an asset? If it’s there why not make money off of it?

In neighborhoods with houses of $2 million, trust me when I say that there would be a huge stigma to renting out the basement. Your neighbors will look down on you and assume you are house poor. Trust me, as I speak from personal experience (as the person who was house poor).

And ?