Reply to Is it dumb to put most of our savings into a house?

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[quote=Anonymous]You need to start seriously saving for retirement. Sure you can downsize when you retire, but what if the market has weakened and you have to sell at a loss? Or what if the interest rate environment has gone up (likely) and even downsizing won't reduce your expenses? Then what? I would take a meaningful chunk of that money off the table and put it retirement accounts, probably maxing out your 401ks and iras, I'd keep 70k of it in cash and I'd put the rest towards the house.

Have you already moved? DC is great but its very $$$. My first reaction to $3600 for a house was "hey that's not a bad!". The reason that rent is that high is because buying costs even more. Where are the jobs? DC? Va? Whether or not this is a good idea will depend heavily on stuff like this. How old are your kids, do you need daycare? ($1,500 a mo per kid here). All of these will factor heavily into what you can (or should) do. Buying in a good public school district may very well mean a townhouse instead of a single family. Or, you can face private but at a cost of $20 to $30k a year per kid. Food for thought. I've had many friends try to move here and I've told them all not to move for anything less than a 30 or 40% pay bump.

Source: millionaire [/quote]

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