Reply to $1M home on $157k base compensation?-DC

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[quote=Anonymous][quote=Anonymous]Why do you need 3-5 bedrooms if you’re single? Get a 1 or 2 bedroom condo and then if you get married, buy something bigger together with your combined incomes.

Even if you had a stable job as a Fed, your salary is not high enough to afford a $1M home. The tech industry is a lot less stable. You can’t pay a $900k mortgage by yourself if you lose a job. I make what you do, and when DH recently quit his job, I was barely able to support us for the 6 months he was unemployed …with a $500K mortgage at 3%. [/quote]
I second this.

When you are single, you should saving money (families and kids are expensive!). Even if had have the money (which you don’t), it likely doesn’t make financial sense to buy a large, expensive home (i.e., much more than you need) if you are single.  As mentioned earlier in this thread, you’ve got outlays for property taxes, homeowner’s insurance, homeowner’s association fees, etc. All those can easily add $12K to $15K per year in expenses on a $1M home.  That’s money you aren’t saving or investing.  There’s also the lost opportunity cost of spending money on a home you don’t need versus gaining a 5-6% return (or more) on savings; real estate in most markets is unlikely to appreciate at the same 5-6% rate under current rate conditions.
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