Anonymous wrote:

Anonymous wrote:HHI is a bit over 1M, healthy accessible savings of $750K, and we are about $500K apart with how much house we can afford. What is reasonable, and how do we resolve this?

I sense troll.

What couple with a HHI of over $1m with that much in savings posts such an inane question on this forum?

either troll or "working mom" who feels the need to brag to cover up some insecurities

seriously - Move on if your real.

YOU'RE (wouldn't want the grammar police to lock me up!)

Anonymous wrote:HHI is a bit over 1M, healthy accessible savings of $750K, and we are about $500K apart with how much house we can afford. What is reasonable, and how do we resolve this?

I sense troll.

What couple with a HHI of over $1m with that much in savings posts such an inane question on this forum?

either troll or "working mom" who feels the need to brag to cover up some insecurities

seriously - Move on if your real.

I bet she wants a walkway made of more expensive granite then my countertops.

This isn't just first world problems. It's zeroth world problems.

I have no freaking idea what you're spending your money on if you're making $1mn a year and can only spend $1.7mn on a house. Even with law+medical school debt of 300k, you can pay that off in a year or two if you can "get by" in a 3BR TH paying $4k a in rent.

10:19 makes a good point, make sure hubby's not making you do more work to make HIM feel better financially.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:HHI over 1M, you don't need to be asking this question.

Exactly. My heart bleeds for the OP.

Wow. Not asking for sympathy. Just for conflict resolution and how to go about it. If it makes everyone happier, divide everything in half or in 1/4ths- still the same problem and still trying to ascertain comfort level. How about "We make about $250K per year, have a healthy savings of $200K, but are $150K apart on how much house we can afford" What can we really afford and how do we go about it? Is that more palatable?

I basically did that kind of math since we are about 1/4th of the amounts and we had higher interests rates at the time. I think 1.2-1.3 million to be a conservative number that puts you in a price range to have a master bedroom, nice kitchen etc, possibly a tear down inside the beltway. It won't be walkable to much but atleast close to a ride on bus to the metro. I think the difference between under 1 and 1.25 to be much wider than 1.25-1.6 just because there is a floor of what it would cost to be inside the Beltway in say Bethesda and have a house that was built recently enough that it has lots of bathrooms, a garage, atleast 4 decent sized bedrooms, walk in closet, large open layout updated kitchen that opens to the family room, a man cave, and a playroom.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think 1.7m is too much to spend in your situation, OP. Your HHI is healthy (obviously), but your savings are pretty low for that HHI, so I think you need to allocate more of your income to savings than to mortgage interest.

I did not see any estimate of your current monthly/yearly spend, which could have a big impact on the answer. You also don't say how stable (or not) your incomes are.

I'd recommend targeting homes in the 1.3m range (plus/minus 200k). We're in a comparable situation to you, and that's our target.

This. You are technically under accumulators of wealth. Read The Millionaire Next Door.

Agreed. We make about 1/10 of what you do, but we have 1/3-1/2 of the "accessible savings" that you do.

She said she has $750,000 liquid, accessible funds.
Her savings are likely in a spread of investments for retirement, college funds, etc via mutual funds, CDs, bonds, and/or alternatives. So those are illiquid and you have to have an exit plan and tax plan if you want to touch those early.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think 1.7m is too much to spend in your situation, OP. Your HHI is healthy (obviously), but your savings are pretty low for that HHI, so I think you need to allocate more of your income to savings than to mortgage interest.

I did not see any estimate of your current monthly/yearly spend, which could have a big impact on the answer. You also don't say how stable (or not) your incomes are.

I'd recommend targeting homes in the 1.3m range (plus/minus 200k). We're in a comparable situation to you, and that's our target.

This. You are technically under accumulators of wealth. Read The Millionaire Next Door.

Agreed. We make about 1/10 of what you do, but we have 1/3-1/2 of the "accessible savings" that you do.

Apparently, she didn't factor into her reported savings some number of full college tuitions.

OP, I think you need to start with the house. You will need to agree on that in any case, so why not just start with that. Have your realtor show you the full range (from his to your number) and see what is the house that works for both of you. That will be your answer.

Honestly, I find his number pretty ridiculous. We make much less and are very conservative re: debt (haven't bought anything yet) but to limit yourself to one year HHI is kind of ridiculous. The old rule of thumb used to be that price of the house should be no more than 3*HHI. 2*HHI would be a conservative approach. 1*HHi is really kind of ridiculous approach - unless you actually find a house you both like at that price.

You could afford either, especially with 25% down payment.
We went with a mortgage of $999k and topped off the rest with equity. Once you hit mortgages over $1m it is painful double and triple underwriting processes that appeared totally assinine.
3k-4k square feet should be fun for your and your family. Try Bethesda near the red line or north Arlington ( better taxes, state and county not on track to go bankrupt)..
If you are not in a rush, try to buy a property based on VALUE and from a motivated seller. No one wants ton lose money or overpay. Be wary of realtors, they might really push you into too much he or unnecessary amenities.
If you feel your income (or job ) is volatile then don't buy so much house.
FYI, there are plenty of double income couples making $500k and up within the beltway and they are not all snobs. Some are, but the other half are people who went to grad school and work their tails off. Oh, and many people that created their own income, savings or wealth are not stupid nor flippant with their money. So good question and good luck w/ your house search.

Anonymous wrote:

Anonymous wrote:I think 1.7m is too much to spend in your situation, OP. Your HHI is healthy (obviously), but your savings are pretty low for that HHI, so I think you need to allocate more of your income to savings than to mortgage interest.

I did not see any estimate of your current monthly/yearly spend, which could have a big impact on the answer. You also don't say how stable (or not) your incomes are.

I'd recommend targeting homes in the 1.3m range (plus/minus 200k). We're in a comparable situation to you, and that's our target.

This. You are technically under accumulators of wealth. Read The Millionaire Next Door.

Agreed. We make about 1/10 of what you do, but we have 1/3-1/2 of the "accessible savings" that you do.

Anonymous wrote:HHI is a bit over 1M, healthy accessible savings of $750K, and we are about $500K apart with how much house we can afford. What is reasonable, and how do we resolve this?

With HHI over 1M, and assuming you don't have any significant debt(student loan, etc), I would buy a house at least around 1.2M-1.25M. We just bought a house and from experience I know a metro accessible move in ready house in a neighborhood with good school district is not less than that unless you guys are ready to move in and do some major renovation on the house. May be if you actively start looking and your souse sees the houses that 1M will buy you in nice neighborhoods, he will change his mind! Good luck.

I thought the rich was going to create jobs not buy bigger houses WTF

Anonymous wrote:I think 1.7m is too much to spend in your situation, OP. Your HHI is healthy (obviously), but your savings are pretty low for that HHI, so I think you need to allocate more of your income to savings than to mortgage interest.

I did not see any estimate of your current monthly/yearly spend, which could have a big impact on the answer. You also don't say how stable (or not) your incomes are.

I'd recommend targeting homes in the 1.3m range (plus/minus 200k). We're in a comparable situation to you, and that's our target.

This. You are technically under accumulators of wealth. Read The Millionaire Next Door.

Anonymous wrote:Who wants to fly to France for lunch tomorrow? Ask your hubby's if it's okay.

The tragedy is hubby would only let her fly to san fran for lunch rather then Paris

I think 1.7m is too much to spend in your situation, OP. Your HHI is healthy (obviously), but your savings are pretty low for that HHI, so I think you need to allocate more of your income to savings than to mortgage interest.

I did not see any estimate of your current monthly/yearly spend, which could have a big impact on the answer. You also don't say how stable (or not) your incomes are.

I'd recommend targeting homes in the 1.3m range (plus/minus 200k). We're in a comparable situation to you, and that's our target.

Why not look at houses in the price range you would both consider and find the house you love?