Hello All!
I live in a HCOL area and my primary residence is rough - very uncomfortable: 1 bathroom for family of 5, no central heating / air, no dishwasher, etc. But, a valuable lot. We're the poor people nestled between $3-5 million houses. We can certainly keep living here, we're happy, the kids are kids and love everything. It's fine. I have selfishly been fantisizing about buying another house, and nothing would be worth moving into under about 2 million. I finally found a house for 2 million with incredible views, plenty of bedrooms and bathrooms. But I struggle with the sheer weight of a house worth 2 million, and I feel like I am not worthy of it (and certainly am not, it would be a big stretch). My mortgage person said I'd qualify (means nothing) and nothing to worry about, but I'm concerned I'm biting off too much, so curious what you all think. Also concerned with the fact that I'm finally able to save significantly for retirement and it's going great. But, I don't know if I can live like this for 20 more years, and starting to think I work very hard and maybe should be able to have a nice home. Sorry for the emotional rambling ... here's the data:
Down Payment: 1,100,000
Mortgage: 900,000
Monthly payment: ~7,200
Income:
Varies between 300,000-500,000
Expenses:
Total household expenses are about $70,000/year, including:
3,000/month mortgage/insurance
1,200/month college savings
Total taxes are about $120,000/year, so total expenses are close to $200,000/year.
401ks & IRAs get maxed out.
Assets:
Brokerage: 1,250,000
401K/IRA's: 900,000
Rental House: 600,000 No mortgage *** To be sold for new house.
Primary Residence: 800,000 (300,000 left on 3% loan) *** To be sold for new house.
No other debts besides Primary Residence
----------------------
Net worth: 3,500,000
I live in a HCOL area and my primary residence is rough - very uncomfortable: 1 bathroom for family of 5, no central heating / air, no dishwasher, etc. But, a valuable lot. We're the poor people nestled between $3-5 million houses. We can certainly keep living here, we're happy, the kids are kids and love everything. It's fine. I have selfishly been fantisizing about buying another house, and nothing would be worth moving into under about 2 million. I finally found a house for 2 million with incredible views, plenty of bedrooms and bathrooms. But I struggle with the sheer weight of a house worth 2 million, and I feel like I am not worthy of it (and certainly am not, it would be a big stretch). My mortgage person said I'd qualify (means nothing) and nothing to worry about, but I'm concerned I'm biting off too much, so curious what you all think. Also concerned with the fact that I'm finally able to save significantly for retirement and it's going great. But, I don't know if I can live like this for 20 more years, and starting to think I work very hard and maybe should be able to have a nice home. Sorry for the emotional rambling ... here's the data:
Down Payment: 1,100,000
Mortgage: 900,000
Monthly payment: ~7,200
Income:
Varies between 300,000-500,000
Expenses:
Total household expenses are about $70,000/year, including:
3,000/month mortgage/insurance
1,200/month college savings
Total taxes are about $120,000/year, so total expenses are close to $200,000/year.
401ks & IRAs get maxed out.
Assets:
Brokerage: 1,250,000
401K/IRA's: 900,000
Rental House: 600,000 No mortgage *** To be sold for new house.
Primary Residence: 800,000 (300,000 left on 3% loan) *** To be sold for new house.
No other debts besides Primary Residence
----------------------
Net worth: 3,500,000
Statistics: Posted by magnusw — Sat Aug 03, 2024 11:13 pm — Replies 3 — Views 249