Reply to Why do people buy houses on the basis of 2 salaries instead of 1?

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[quote=Anonymous][quote=Anonymous]You’ve really missed out on a massive amount of home appreciation equity if you were too conservative in the past when buying a house.

We stretched on two incomes and bought a house in a neighborhood with good schools so we didn’t need to pay for private schools. Now 15 years later our incomes have doubled and our house has more than doubled in price. We bought at 750k (which I thought was over our price range but the house was too good to pass up). It’s worth at least in paper 2 million now.

Friends bought a house in an area with not so great schools for 450k. Their house has probably doubled to 900k but they also ended up eventually having to pay for junior high.

So just looking at home equity based on the increase in value, they have made 450k while we have made 1.25 million. And now we could pay the mortgage on one income. [/quote]

I was one of the PPs who mentioned being way too conservative. I will add the one thing we didn’t compromise on is location (including schools). We paid about $1M and most of that value is in the land/lot (bought an old bungalow). Mortgage was originally $700K which was a little over 1x our HHI then (has gone up significantly since, which also doesn’t help the whole too conservative thing). [/quote]

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