Yea, I'm sorry, but I roll my eyes at and am highly skeptical at a post like this. Early 30s with $1.6 million in liquid assets and considering buying a house in cash? That is such a painfully amateurish financial decision for a couple that allegedly has accumulated so much money in such a short amount of time that something doesn't add up.

the pp isn’t wrong, but i’d also consider buying a nicer/larger house closer in to where you work and a good school district. look for a neighborhood with lots of kids. you can easily afford $1.3 with a mortgage.

another idea- keep your townhouse and rent it out. use cash and a mortgage to get a new place. this is using leverage to increase your wealth.

we make a similar amount and had $800k in liquid assets and got into a $1.5m house at 7 percent (ouch). got into a pinch when our first home didn’t sell, but ended up renting it out. now that rent is subsiding the new house mortgage. the old house has a 2.5 percent interest rate, so in hindsight we’re glad we didn’t sell. it’s working out great.

Anonymous wrote:Sell your townhouse, take the equity and round it up to 1M from your liquid asset. Pay cash for the house. Then spend the next 10 years heavily saving.

Say you have $1M house fully paid off and 800k in liquid savings, you're in an excellent position. I'd do it.

Yes, but buy a new house and then sell the townhouse. You have enough cash that you don't need to bother with the stress of buying and selling at the same time or making compromises you wouldn't otherwise make just because that's the inventory at a moment in time.

Take you time, choose carefully, do it in the next year before your kids are in elementary school.

Sell your townhouse, take the equity and round it up to 1M from your liquid asset. Pay cash for the house. Then spend the next 10 years heavily saving.

Say you have $1M house fully paid off and 800k in liquid savings, you're in an excellent position. I'd do it.

Anonymous wrote:Did mommy and daddy help with that 1.6 million? You sound like a spoiled brat.

Nope, didn't inherit a cent. We just started making decent money in our early 20's (no grad school), saved/invested big, market did the rest. Mostly S&P 500 but had a few nice investment plays like BTC and NVDA that juiced our returns a bit.

When I was your age with two young kids, we lived in a 700 sq ft one bedroom, with the baby in our bed and our 5 year old in a large crib at the foot of the bed.

Stop whining about your townhome and just buy what you can afford. Above all, buy in a great school district!!!

Did mommy and daddy help with that 1.6 million? You sound like a spoiled brat.

Do it now... your living situations sounds terrible. Waiting is pointless.

now

I’m chuckling, because the housing situation (cramped space, one driveway, no real office space ), sounds exactly like my house that I paid $1 m for and is now worth $1.75 M. But to answer your question, we bought our house (12 years ago) with about that HHI and it was fine. At early thirties you still likely have room to grow in terms of salaries.

Decide the payment you want, back into it and pay cash for the rest. But then keep maxing out retirement and other savings.

That sounds miserable. Lots of people in your income bracket who buy at and above $1M. Look at the corresponding HHI thread on the real estate forum going on right now.

Why wouldn't you be able to do it? You have the money to pay in cash. You can obviously buy a $1M house.

Who is giving you the advice?

300k income, 1.6 mil liquid assets. 31/34 years old with two kids under 5 and we’re practically living on top of each other in this townhouse. No yard for kids, 1 driveway and have to fight for parking for second car, annoying vertical layout with tiny tiny rooms. Can barely fit two dressers and bedside tables in our master BR. Neither of us can have our own office because all BR’s are taken up. I just want to liquidate a bunch of investments and buy a larger house in cash or put 75% down to avoid high monthly payments but everyone giving me advice says not to do it. We’re in Fairfax County and arent looking in a close in zip code so 1M gets you decent space. So tired of this townhouse though.