Reply to If you bought a house over $1.5 were you able to afford to do so on your salaries or equity?

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Reply to "If you bought a house over $1.5 were you able to afford to do so on your salaries or equity?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I think the differences in this thread just show how differently people spend money. The idea that a combined income of $400K can't afford a $1.3 million home is strange, unless the couple is fresh out of college/grad school. It's just about priorities -- if you don't save and invest, and instead take 5-star vacations, pay private school tuition, eat out at high end restaurants often, buy designer clothes, upgrade cars every few years, then it doesn't seem doable. Those are choices, though. Many people make different choices -- they're not eating PB&J all the time, but they're just leading more modest lifestyles. And yes, on a $400K combined income, with modest lifestyle choices, it is not difficult to buy more than a $1.3 million house.[/quote]

Fair point. We are 31 and 29 and make about 580k combined. I’m stressing about a 1.5M house because we had to save for the entire down payment (20%) with no family help. We have other assets, and a home with decent equity, but it just “feels” like we are being dumb or too spendy.

If I was 50 and have made my income for 20 years, you bet I wouldn’t stress about a 1.5M house because our liquid assets would be many millions at the rate we’re going.

Currently, we are stressing about buying a 1.4-1.5M house in Chevy chase. Should we be? Probably not? Are we ridiculously anxious, yes. If we had $5M liquid I wouldn’t think twice about buying the home [/quote]

I think you're good and making a smart decision. The only downfall to this plan is I don't know if CC or any of the DC burbs has great long term growth. Would you consider moving to a city that has more upwards growth (Austin, Nashville, SF burbs, Tampa?).. It's a lot of money and you might be just sinking it into a relatively flat RE market. We bought at the same age as you about 10 years ago for $500 and our house is worth $2mil. It set us up financially big time. [/quote]

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