Anonymous
05/30/2014 21:57
Subject: Re:True/False: you should buy the most house you can afford (in this area) to maximize appreciation
you can afford it.
would you rather have a nicer house and be more comfortable and happy for the next 20 years, and another $400K in net worth, or piss that extra $1K away each month on stupid shit? you are not going to save it.
would you rather have a nicer house and be more comfortable and happy for the next 20 years, and another $400K in net worth, or piss that extra $1K away each month on stupid shit? you are not going to save it.
Anonymous
05/30/2014 21:52
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
Anonymous wrote:OP here. I'm not "perfectly happy" in the current house as one PP said, but it is more than sufficient. Everything I'd be looking for would just be luxuries like 3rd full bath up, vaulted family room, 2nd stair case, bigger garage. i feel like if we can afford it, its not a BAD place to put the money. DH would rather save and make minor improvements than make a housing jump. He thinks there are "hidden" costs like higher taxes and utilities/maintenance, and richer neighbors making "keeping up" more expensive.
I just feel like if we are maxing out retirement and almost done saving for college, what else should we do with the extra money?
Save more for retirement. You can't "max out retirement."
Anonymous
05/30/2014 21:18
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
OP here. I'm not "perfectly happy" in the current house as one PP said, but it is more than sufficient. Everything I'd be looking for would just be luxuries like 3rd full bath up, vaulted family room, 2nd stair case, bigger garage. i feel like if we can afford it, its not a BAD place to put the money. DH would rather save and make minor improvements than make a housing jump. He thinks there are "hidden" costs like higher taxes and utilities/maintenance, and richer neighbors making "keeping up" more expensive.
I just feel like if we are maxing out retirement and almost done saving for college, what else should we do with the extra money?
I just feel like if we are maxing out retirement and almost done saving for college, what else should we do with the extra money?
Anonymous
05/30/2014 19:51
Subject: Re:True/False: you should buy the most house you can afford (in this area) to maximize appreciation
true.
no brainer if your job is stable.
no brainer if your job is stable.
Anonymous
05/30/2014 19:38
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
Buy the most house you can afford with a 10-15 year mortgage.
Anonymous
05/30/2014 19:34
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
If you are approaching it as an investment, then consider if you would make any other enormous, highly-leveraged bet.
If it's housing, treat it like a monthly expense.
If it's housing, treat it like a monthly expense.
Anonymous
05/30/2014 18:48
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
Anonymous wrote:False. The real estate commission alone is going to eat up about $42K of the difference right there. If anything maybe make a few improvements...maybe.
Agree with this! Not worth it now. May have been different at the start.
Anonymous
05/30/2014 17:50
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
Don't put your eggs in one basket...
Anonymous
05/30/2014 17:29
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
I don't see a good enough reason to buy the more expensive house. If I already have what I want, why get greedy? Invest your money elsewhere.
Anonymous
05/30/2014 17:09
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
Anonymous wrote:p.s. "Discuss!" is only slightly less annoying than "Go!" IMO
Agree. OP, stay in your current home and pay it off. It is much, much harder to sell a more expensive house then a cheaper one. And it won't necessarily appreciate more.
Anonymous
05/30/2014 17:06
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
p.s. "Discuss!" is only slightly less annoying than "Go!" IMO
Anonymous
05/30/2014 17:05
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
No. Basically the question seems to be, if I am perfectly happy in my house, would I decide that leveraged residential real estate in this area is the best investment for the next 15-20 years, and that I am willing to move to put my money there.
First, I don't have any reason to believe DC area residential real estate will do significantly better than other investments over the next 15-20 years-- I'd rather put my investments in a broader portfolio.
Second, I don't want to take on all the expense/annoyance of a move in order to try and outperform the market. That would be the classic tail wagging the dog-- I earn/save money so I can live where I want, not vice versa.
Third, and PP said, maybe I have enough savings and want to spend the cash on travel, or a tesla, or who knows...
First, I don't have any reason to believe DC area residential real estate will do significantly better than other investments over the next 15-20 years-- I'd rather put my investments in a broader portfolio.
Second, I don't want to take on all the expense/annoyance of a move in order to try and outperform the market. That would be the classic tail wagging the dog-- I earn/save money so I can live where I want, not vice versa.
Third, and PP said, maybe I have enough savings and want to spend the cash on travel, or a tesla, or who knows...
Anonymous
05/30/2014 16:56
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
False. The real estate commission alone is going to eat up about $42K of the difference right there. If anything maybe make a few improvements...maybe.
Anonymous
05/30/2014 16:53
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
False, given your 2 conditions.
Also, I would want to reserve a certain yearly sum for travel. My family is a continent away, but even without that incentive, I think paying for interesting travel experiences is worthwhile.
Anonymous
05/30/2014 16:46
Subject: True/False: you should buy the most house you can afford (in this area) to maximize appreciation
I've heard of people saying they use their mortgage as sort of a forced savings and/or buy a more expensive house so their home value (over 15-20 years, not short term) appreciates more in whole dollars.
So, from a strictly financial/investment stand point, would you "trade up" from a $700k house to a $950k house (assuming you could afford to) as a vehicle for investment? Or would you just focus on other areas of investment such as paying off the mortgage on the current home? What else would you do with extra money?
For the purposes of discussion, assume that:
1. Current house is "big enough" and in good schools
2. 401k/IRAs are maxed out in either scenario
Discuss!
So, from a strictly financial/investment stand point, would you "trade up" from a $700k house to a $950k house (assuming you could afford to) as a vehicle for investment? Or would you just focus on other areas of investment such as paying off the mortgage on the current home? What else would you do with extra money?
For the purposes of discussion, assume that:
1. Current house is "big enough" and in good schools
2. 401k/IRAs are maxed out in either scenario
Discuss!