Reply to Afford $1.8M on 300K?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]
20% down and investing the rest would be financially astute.

20% down and [b]putting the rest in a savings account[/b] because you don't invest outside of retirement and don't want to invest in a bear market -- which is what you said you've been doing -- is idiotic.  The money you have earning 1% a year is losing value every day due to inflation.  You're not even beating the rate on your mortgage, and then you're setting yourself up to have no spare cash flow every month.  Unless you enjoy stress there's no upside.
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Op here. I didn't want to get into internet arguments with posters that resort to name calling, but I'd like to clarify that our alternative to the $1.8M home is something other than a 1% savings savings account.  Currently, we are putting our excess cash into 1% savings because of the market downturn (and this investment strategy has beaten the sp500 by 20% YTD!) but are trying to figure out what to do with it in the future - buy a bigger house or buy investment property or buy into a bear market (or buy pumpkins - who knows).  That's why we're soliciting advice from DCUM.

Thanks to those who are providing sage advice on the increase in expected cost of home ownership for a $1.8M home.  We are definitely thinking about whether a $6K PITI is "doable" (or if pumpkin investing is the best path forward).  I'm still not understanding why people are thinking that that a $1.5- $2M neighborhood would be full of multi-millionaires (unless those multi-millionaires hide their lamborghinis in the garage and rather show off their $50K cars in the driveway.)  Unless these posters are not from NOVA?

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I live in a neighborhood of $900k-$1.1M homes and we make $300k. I can assure you that we are among the poorer people on our street.

I'm completely befuddled how you have $6k leftover currently after maxing 401k, IRA, and 529. Our current mortgage is 3300/month and while we are quite comfortable, we have nowhere near that amount leftover. And we don't have car payments or student loans or childcare. [/quote]

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