Buying $1.5 million home - can we afford it?

[Anonymous]

Currently in the market to purchase a $1.4m-1.5m home in a very nice suburban area close to the beltway.

HHI: 300k (not including bonus ~$50k)
Downpayment: ~250k
Financed in part through 30-year VA loan

I'm looking at a 10 year minimum term of ownership, and view this a good investment opportunity given current historically low interest rates and seeing that most of the homes in this price range are still significantly below their pre-market crash prices ($500k+ below high market value in some areas). Currently approved for financing, and it appears we'll be able to balance the budget barring any major unexpected costs. However, finances will be very tight at least until our two toddlers are out of daycare in another 2 years, although spouse and I are both under 40 and would reasonably expect our incomes to rise in the coming years.

Good idea, or are we crazy?

[Anonymous]

Crazy.

[Anonymous]

I don't understand choosing to be tight on your finances at that income level. You can get a very nice house for a few hundred thousand less.

[Anonymous]

Nuts

[Anonymous]

Anonymous wrote:I don't understand choosing to be tight on your finances at that income level. You can get a very nice house for a few hundred thousand less.

This.

[Anonymous]

With 300 Hhi a 1.5M purchase is not advisable. The rule of thumb would be 3-4x Hhi not counting bonus. Just because you can get approved for it doesn't mean it is wise.

It would be one thing if you were putting significantly more than 20 percent down by that is not case either.

[Anonymous]

You are gambling with everything here. What if housing prices go down? Read up on the trump tax plan. If they get rid of itemizing of state and local - property prices are expected to fall 10 percent in areas like ours.

[Anonymous]

Only do this if you buy inside the beltway with high school ratings

[Anonymous]

Anonymous wrote:Currently in the market to purchase a $1.4m-1.5m home in a very nice suburban area close to the beltway.

HHI: 300k (not including bonus ~$50k)
Downpayment: ~250k
Financed in part through 30-year VA loan

I'm looking at a 10 year minimum term of ownership, and view this a good investment opportunity given current historically low interest rates and seeing that most of the homes in this price range are still significantly below their pre-market crash prices ($500k+ below high market value in some areas). Currently approved for financing, and it appears we'll be able to balance the budget barring any major unexpected costs. However, finances will be very tight at least until our two toddlers are out of daycare in another 2 years, although spouse and I are both under 40 and would reasonably expect our incomes to rise in the coming years.

Good idea, or are we crazy?

We are doing this but have hhi of 450 and the house will have 700k of equity after it's finished

[Anonymous]

Anonymous wrote:

Anonymous wrote:Currently in the market to purchase a $1.4m-1.5m home in a very nice suburban area close to the beltway.

HHI: 300k (not including bonus ~$50k)
Downpayment: ~250k
Financed in part through 30-year VA loan

I'm looking at a 10 year minimum term of ownership, and view this a good investment opportunity given current historically low interest rates and seeing that most of the homes in this price range are still significantly below their pre-market crash prices ($500k+ below high market value in some areas). Currently approved for financing, and it appears we'll be able to balance the budget barring any major unexpected costs. However, finances will be very tight at least until our two toddlers are out of daycare in another 2 years, although spouse and I are both under 40 and would reasonably expect our incomes to rise in the coming years.

Good idea, or are we crazy?

We are doing this but have hhi of 450 and the house will have 700k of equity after it's finished

But we are inside the beltway with gs of all 9s and 10s

[Anonymous]

Anonymous wrote:Only do this if you buy inside the beltway with high school ratings

OP here: The home we are considering are all in Great Falls or Mclean, so school ratings will be among the highest in the country.

[Anonymous]

If you can't figure out how to buy a house on 300k without making things tight, you are not financially ready for home ownership.

[Anonymous]

At least stick to a level where you're putting 20% down, which would be 1.25m with your $250k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Only do this if you buy inside the beltway with high school ratings

OP here: The home we are considering are all in Great Falls or Mclean, so school ratings will be among the highest in the country.

Prices are dropping in Langley pyramids, I would but in McLean high zones inside the beltway

[Anonymous]

Anonymous wrote:Currently in the market to purchase a $1.4m-1.5m home in a very nice suburban area close to the beltway.

HHI: 300k (not including bonus ~$50k)
Downpayment: ~250k
Financed in part through 30-year VA loan

I'm looking at a 10 year minimum term of ownership, and view this a good investment opportunity given current historically low interest rates and seeing that most of the homes in this price range are still significantly below their pre-market crash prices ($500k+ below high market value in some areas). Currently approved for financing, and it appears we'll be able to balance the budget barring any major unexpected costs. However, finances will be very tight at least until our two toddlers are out of daycare in another 2 years, although spouse and I are both under 40 and would reasonably expect our incomes to rise in the coming years.

Good idea, or are we crazy?

How old is the house? New houses do not have the same investment growth as an older house.