Anonymous
Post 03/02/2018 09:13     Subject: Re:If you are house poor, do you regret it?
Anonymous wrote:We are trying to decide whether to keep the 3,500 a month mortgage and save close to 6,000 a month after retirement

Or

Take on a 7,500 mortgage and save 2,000 a month after retirement


We can pay the 7,500 on one salary and unemployment if necessary. No other debts. One job is extremely stable with a pension.

Thing is I’m not sure what we really need the large brokerage account for. I think a lot of people are house poor for this reason...what is a large savings account going to really do for you? You can’t take it with you. Most professionals can find another similar paying job if they lose their job. Most people have to work for retirement savings and healthcare. So you might as well live in a nice house.



If you can pay the 7500 and all your other expenses on one income, my God, how much are you spending now that you can only save $6,000/mo with full employment?
Anonymous
Post 03/02/2018 09:09     Subject: If you are house poor, do you regret it?
I hate having a large 30 year mortgage. It ties us into both of us working since even if we can manage on one income, it is risky when you have so many years of payments ahead. My husband is happy about the house and location. I like both but sometimes with we had a mortgage that I could imagine paying off early.
Anonymous
Post 03/02/2018 08:23     Subject: If you are house poor, do you regret it?
We have a smaller townhouse that is walkable to metro in a good VA pyramid. It also allows us to only have 1 car. With all the savings DH and I will be able to retire early and take a nice vacation (or two) every year. We don't regret for one minute!
Anonymous
Post 03/02/2018 08:21     Subject: Re:If you are house poor, do you regret it?
We are trying to decide whether to keep the 3,500 a month mortgage and save close to 6,000 a month after retirement

Or

Take on a 7,500 mortgage and save 2,000 a month after retirement


We can pay the 7,500 on one salary and unemployment if necessary. No other debts. One job is extremely stable with a pension.

Thing is I’m not sure what we really need the large brokerage account for. I think a lot of people are house poor for this reason...what is a large savings account going to really do for you? You can’t take it with you. Most professionals can find another similar paying job if they lose their job. Most people have to work for retirement savings and healthcare. So you might as well live in a nice house.

Anonymous
Post 03/02/2018 08:04     Subject: If you are house poor, do you regret it?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:2hr commute each way to 30 minutes. Schools rated a 2 to schools rated 8. Not at all walkable to very walkable. I do not regret it. House poor isn’t a permanent thing, it only takes maybe 3-5 years and things get better. People that say being house poor isn’t good are rich and don’t have their kids in a school rated 2.


Many people won't have significantly higher income in 3-5 years to make it "better." And even for folks who expect an income increase- such as making partner - can have setbacks that stop the increase or even imperil the income level when you bought the house.


Put your kids into a school rated 2 and see how you like it.


I wouldn't, but it isn't an either or situation. You could find a house in a better school district for less. It could be further out, further from metro, smaller, older, etc.

It wasn't just schools that made you house poor. It was all these other choices too. Hopefully, it will work for you. For many people it wouldn't. And for folks with little hope for big raises (e.g., maxed out Feds) flippantly saying income will get better in 3-5 years isn't true.
Anonymous
Post 03/02/2018 08:03     Subject: If you are house poor, do you regret it?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:2hr commute each way to 30 minutes. Schools rated a 2 to schools rated 8. Not at all walkable to very walkable. I do not regret it. House poor isn’t a permanent thing, it only takes maybe 3-5 years and things get better. People that say being house poor isn’t good are rich and don’t have their kids in a school rated 2.


Many people won't have significantly higher income in 3-5 years to make it "better." And even for folks who expect an income increase- such as making partner - can have setbacks that stop the increase or even imperil the income level when you bought the house.


Put your kids into a school rated 2 and see how you like it.


Not sure why you would live so far out and go to a 2 school. Lots of people live far out in Loudoun county and their kids go to excellent schools.


You’re not sure because you’re rich. Our income was not high. Talk about out of touch.
Anonymous
Post 03/02/2018 07:58     Subject: If you are house poor, do you regret it?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:2hr commute each way to 30 minutes. Schools rated a 2 to schools rated 8. Not at all walkable to very walkable. I do not regret it. House poor isn’t a permanent thing, it only takes maybe 3-5 years and things get better. People that say being house poor isn’t good are rich and don’t have their kids in a school rated 2.


Many people won't have significantly higher income in 3-5 years to make it "better." And even for folks who expect an income increase- such as making partner - can have setbacks that stop the increase or even imperil the income level when you bought the house.


Put your kids into a school rated 2 and see how you like it.


Not sure why you would live so far out and go to a 2 school. Lots of people live far out in Loudoun county and their kids go to excellent schools.
Anonymous
Post 03/02/2018 07:50     Subject: If you are house poor, do you regret it?
Anonymous wrote:
Anonymous wrote:2hr commute each way to 30 minutes. Schools rated a 2 to schools rated 8. Not at all walkable to very walkable. I do not regret it. House poor isn’t a permanent thing, it only takes maybe 3-5 years and things get better. People that say being house poor isn’t good are rich and don’t have their kids in a school rated 2.


Many people won't have significantly higher income in 3-5 years to make it "better." And even for folks who expect an income increase- such as making partner - can have setbacks that stop the increase or even imperil the income level when you bought the house.


Put your kids into a school rated 2 and see how you like it.
Anonymous
Post 03/02/2018 07:50     Subject: If you are house poor, do you regret it?
Anonymous wrote:2hr commute each way to 30 minutes. Schools rated a 2 to schools rated 8. Not at all walkable to very walkable. I do not regret it. House poor isn’t a permanent thing, it only takes maybe 3-5 years and things get better. People that say being house poor isn’t good are rich and don’t have their kids in a school rated 2.

7 and 25 minute commutes, the longer one is opposite to traffic, 2 blocks to school rated10, very walkable, but we drive if it's further than 20 minute walk. Get a condo instead of being house poor.
Anonymous
Post 03/02/2018 07:47     Subject: If you are house poor, do you regret it?
We did a variation of this and do not regret it.

In lieu of purchasing further out, we purchased a more expensive house close in. For my DH, he walked to work for 5 years. My commute was always less than 30 minutes.

Having dinner as a family is important to us. We would not have been able to do it if we lived further out.
Anonymous
Post 03/02/2018 07:46     Subject: If you are house poor, do you regret it?
Anonymous wrote:2hr commute each way to 30 minutes. Schools rated a 2 to schools rated 8. Not at all walkable to very walkable. I do not regret it. House poor isn’t a permanent thing, it only takes maybe 3-5 years and things get better. People that say being house poor isn’t good are rich and don’t have their kids in a school rated 2.


Many people won't have significantly higher income in 3-5 years to make it "better." And even for folks who expect an income increase- such as making partner - can have setbacks that stop the increase or even imperil the income level when you bought the house.
Anonymous
Post 03/02/2018 07:40     Subject: If you are house poor, do you regret it?
Anonymous wrote:
Anonymous wrote:A 7 figure mortgage is just tremendous.


Agreed. But what can you do? We are looking at cramped townhomes or 1+hr commutes...


Rent in the neighborhood you want!
Anonymous
Post 03/02/2018 07:36     Subject: If you are house poor, do you regret it?
2hr commute each way to 30 minutes. Schools rated a 2 to schools rated 8. Not at all walkable to very walkable. I do not regret it. House poor isn’t a permanent thing, it only takes maybe 3-5 years and things get better. People that say being house poor isn’t good are rich and don’t have their kids in a school rated 2.
Anonymous
Post 03/02/2018 07:36     Subject: Re:If you are house poor, do you regret it?
We stretched our budget for our dream home. Turns out the "top" school district wasn't so great and had enough warts that we felt the strong need to move our child to private (where he thrived in a way he never could have at public). We could have easily afforded private with our old mortgage, it was an incredible struggle with our mortgage. We ended up burning though most of our savings (not retirement). Wish we never locked ourselves into having so much money tied up in a house so we had flexibility for other needs/wants.
Anonymous
Post 03/02/2018 07:17     Subject: Re:If you are house poor, do you regret it?
Anonymous wrote:
Anonymous wrote:OP is your husband the sole earner? If so, this is an even riskier idea. No way would I ever consider this in a one-income household.


I work part time. DH is the main earner.


If you do this, and he loses his job, how long can you support the household on your income alone? You said you would wipe out your savings for this purchase so I’ll assume there will no longer be an emergency fund.