Anonymous
05/08/2014 13:55
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage.
You're speaking so far out of your ass at this point that you should really refrain from giving household savings tips to others. I say this as someone who shares your sentiment: too many people say it's too hard, too much of the time. That said, you've materially misrepresented your situation and left off -- and, here, as elsewhere I'll constrain myself to speaking from experience -- one major component of savings/consumption: children.
I'll break it down for you. In DC, daycare will run about 2k per month for the first 3 years (that's an average). It will decline by a few hundred dollars in subsequent years. **(See below.)
Once your child reaches school-age, you'll quickly realized that school hours are short, much shorter than working hours. So you'll need some care around the ends of the day. And in the summer. You'll either be looking at an au pair or some other arrangement costing about the same.
Next, with your income, you'll likely be hit by the AMT. That hurts. Factor in about 5k in additional taxes.
Finally, the child will really squeeze your day. Effectively, career-advancement is on-hold for a few years. This is the trade-off you should be cognizant of going-in, and acknowledge that you're fortunate enough to be in such a position. But, this does limit your income gains for at least a few years.
Oh, and start saving for college. But, honestly, on 180k, this will be tough. You're in the exact wrong spot for college: high enough income to not qualify for financial aid, but not high enough that you can comfortably swing the cost out-of-pocket. Yeah, this will suck, so start planning ahead now.
Signed,
Parent of 2, HHI @300k, mortgage around 900k.
**Yes, you can find cheaper daycare options. But, extrapolating from your HHI, you'll probably find the cheaper options not to your liking. A family daycare may be fine for most people (and I personally believe it is in no ways inferior), but you'll probably elect to go a more corporate route. Probably located nearer to your employment.
I do realize what you're saying. We waited until we had a home we wanted to raise children in before having children. Our mortgage is very low ($1500) so that we can afford children, saving for college, daycare or even if one parent wants to stay home. We love that low mortgage. I'm not speaking out of my ass... I'm not trying to give household tips to others. I would never, but I don't think it's fair to say that only Asians can save or that it's not doable in this area. Yes, it's harder.
Anonymous
05/08/2014 13:54
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage.
You're speaking so far out of your ass at this point that you should really refrain from giving household savings tips to others. I say this as someone who shares your sentiment: too many people say it's too hard, too much of the time. That said, you've materially misrepresented your situation and left off -- and, here, as elsewhere I'll constrain myself to speaking from experience -- one major component of savings/consumption: children.
I'll break it down for you. In DC, daycare will run about 2k per month for the first 3 years (that's an average). It will decline by a few hundred dollars in subsequent years. **(See below.)
Once your child reaches school-age, you'll quickly realized that school hours are short, much shorter than working hours. So you'll need some care around the ends of the day. And in the summer. You'll either be looking at an au pair or some other arrangement costing about the same.
Next, with your income, you'll likely be hit by the AMT. That hurts. Factor in about 5k in additional taxes.
Finally, the child will really squeeze your day. Effectively, career-advancement is on-hold for a few years. This is the trade-off you should be cognizant of going-in, and acknowledge that you're fortunate enough to be in such a position. But, this does limit your income gains for at least a few years.
Oh, and start saving for college. But, honestly, on 180k, this will be tough. You're in the exact wrong spot for college: high enough income to not qualify for financial aid, but not high enough that you can comfortably swing the cost out-of-pocket. Yeah, this will suck, so start planning ahead now.
Signed,
Parent of 2, HHI @300k, mortgage around 900k.
**Yes, you can find cheaper daycare options. But, extrapolating from your HHI, you'll probably find the cheaper options not to your liking. A family daycare may be fine for most people (and I personally believe it is in no ways inferior), but you'll probably elect to go a more corporate route. Probably located nearer to your employment.
Well, shit. There you go. You 1) were more extended previously and 2) hit the market at the right time. You got lucky AND you used to live far less frugally.
Please put self-congratulation party on hold.
Anonymous
05/08/2014 13:52
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Your lecturing people on how they should save save save and how easy it is when you have no idea how much kids will cost you *is* smug by definition. Get real.
My family saves, so I am not saying this out of sour grapes. We have a high income, however, and I recognize that you may need to live closer to the edge if you don't.
Anonymous
05/08/2014 13:51
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage.
Can you elaborate on when you bought, for how much, and what it appreciated to? What kind of equity did you put into, like you are a handyman and reframed an addition? And started with 20% downpayment then?
So this was in DMV, what was your approach? We are first time home buyers and trying to see how to make it to have a huge downpayment for our next home. Unfortunately we aren't super handy, so hopefully that wasn't your appoach?!
PP here, yes we live in DMV. We put down 20% on our first home at 24 which was a small foreclosure (a little under market value, but not much and we didn't do much work to it). Prior we lived with roommates to save (and because we enjoyed roommates in DC at that age). We got a 10 year mortgage so that our payments, savings and tax deductions would be higher. The place did increase in value. Then we sold and were able to put down 60%. It came combined from equity and also from savings. We lived on one income and the other automatically went to investments. We don't drive that old of cars (5 years old), still vacation, etc, but we save a lot.
I know a lot of people on this board think owning homes isn't the best investment strategy, but for us we feel like it is. It's a lot better than paying rent and the tax deductions help (a little). We like building equity in our home instead of paying a landlord's mortgage.
We have talked that maybe it would have been better to keep saving until we were in our 30s and could just buy one house, but we did house hop. I think there are many different ways to go about it.
Anonymous
05/08/2014 13:45
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage.
You're speaking so far out of your ass at this point that you should really refrain from giving household savings tips to others. I say this as someone who shares your sentiment: too many people say it's too hard, too much of the time. That said, you've materially misrepresented your situation and left off -- and, here, as elsewhere I'll constrain myself to speaking from experience -- one major component of savings/consumption: children.
I'll break it down for you. In DC, daycare will run about 2k per month for the first 3 years (that's an average). It will decline by a few hundred dollars in subsequent years. **(See below.)
Once your child reaches school-age, you'll quickly realized that school hours are short, much shorter than working hours. So you'll need some care around the ends of the day. And in the summer. You'll either be looking at an au pair or some other arrangement costing about the same.
Next, with your income, you'll likely be hit by the AMT. That hurts. Factor in about 5k in additional taxes.
Finally, the child will really squeeze your day. Effectively, career-advancement is on-hold for a few years. This is the trade-off you should be cognizant of going-in, and acknowledge that you're fortunate enough to be in such a position. But, this does limit your income gains for at least a few years.
Oh, and start saving for college. But, honestly, on 180k, this will be tough. You're in the exact wrong spot for college: high enough income to not qualify for financial aid, but not high enough that you can comfortably swing the cost out-of-pocket. Yeah, this will suck, so start planning ahead now.
Signed,
Parent of 2, HHI @300k, mortgage around 900k.
**Yes, you can find cheaper daycare options. But, extrapolating from your HHI, you'll probably find the cheaper options not to your liking. A family daycare may be fine for most people (and I personally believe it is in no ways inferior), but you'll probably elect to go a more corporate route. Probably located nearer to your employment.
Anonymous
05/08/2014 13:39
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage.
Can you elaborate on when you bought, for how much, and what it appreciated to? What kind of equity did you put into, like you are a handyman and reframed an addition? And started with 20% downpayment then?
So this was in DMV, what was your approach? We are first time home buyers and trying to see how to make it to have a huge downpayment for our next home. Unfortunately we aren't super handy, so hopefully that wasn't your appoach?!
Anonymous
05/08/2014 13:38
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
Or you choose to live somewhere where children for two is more like 2k, modest home mortgage is 2k, and then you're more positioned to live off one income, save the other, although that's still a pretty high salary for just one person. Obviously not doable for people on a wage of 50/60k
Unfortunately to live somewhere a lower COL you either will have a lackluster job market (outside DMV) or C.R.A.Z.Y. commute to jobs in DC/Tysons.
Anonymous
05/08/2014 13:36
Subject: 43% of home purchases are all cash
Anonymous wrote:The $180k a year poster has said that she doesn't live in the metro area. Less costly areas make it easier to sabe
I live in the DC area.
Anonymous
05/08/2014 13:35
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage.
Can you elaborate on when you bought, for how much, and what it appreciated to? What kind of equity did you put into, like you are a handyman and reframed an addition? And started with 20% downpayment then?
Anonymous
05/08/2014 13:35
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
Or you choose to live somewhere where children for two is more like 2k, modest home mortgage is 2k, and then you're more positioned to live off one income, save the other, although that's still a pretty high salary for just one person. Obviously not doable for people on a wage of 50/60k
Anonymous
05/08/2014 13:34
Subject: 43% of home purchases are all cash
The $180k a year poster has said that she doesn't live in the metro area. Less costly areas make it easier to sabe
Anonymous
05/08/2014 13:34
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
It was our second home... We did make money on the sale of 1st home, but we also put a lot of equity into it. We had a high mortgage.
Anonymous
05/08/2014 13:32
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Than how did you save $60k/year for at least 7 years to get your $400k downpayment?? That requires about $100k additional pre-tax salary, so where did savings come from? Any outside help or lucky investments (ie you bought before the last bubble?)
Anonymous
05/08/2014 13:30
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
Not smug one bit. Not even that proud about it. But I'm sick of everyone saying they can't do it. We haven't always made this much either.
Anonymous
05/08/2014 13:28
Subject: 43% of home purchases are all cash
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Only first time homebuyers put down just 20%!
On our second home we put down 60%. It's easy. Live your life on one income and save the other's income.
Do you live in the DC metro? Or are you married to a law partner? or you are are old. B/c with daycare running $3k/month for two kids, mortgage for a basic starter home at $3k/month, you have to clear $200k to 'save the other's income'.
No. We make HHI 180k. We aren't Asian (although I do agree they are good savers). We don't have children yet, but considering our mortgage is only $1500 on our 700k house, it won't be such a struggle with daycare. We lived on one income since we got jobs and saved 60k a year. We still take great overseas vacations and don't feel pinched at all.
Come back when you have kids. You are really fortunate and I say congratulations, but you come across as smug. Not everyone makes as much as you nor have they been as fortunate.
I would recommend refinancing now and getting that cash out; it will afford you a lot more flexibility than housing "equity". Lock in these crazy low rates on your big balance and you are golden.