hey folks, been a few years since i got on this forum (babies), recently have been struggling re: whether i should buy a home, or how much i should spend; oddly reading bogle heads posts made me feel more calm (can't say that about other places). i resonate with the POVs in this forum, so I would like some feedback based on my personal situation.
personal: 3 toddlers, HCOL/VHCOL area, wife is home maker, we are renting a 2 bedroom in downtown closer to my work, spacing is starting to get tight. no debt.
income: ~370k a year (me only). previously I made like ~150k in MCOL area, so still getting use to implications of HCOL and higher income. current job can be stressful, I'd say 70% confidence i can maintain this income for another 5 years, maybe 50% confidence i can maintain this income in 10 years.
networth: ~2M (800k in 401k, 1.1M in post tax brokerage, 130k in savings acct.)
expense: @~70k a year (3k rent and mostly spent on food). family/spouse are pretty happy with life, don't need to spend much more to be happier.
buy vs rent:
our rental 2bed 1bath condo is 3k a month, if we move up to 3bed 2bath it'll likely be 5k a month, both in good locations (30 min commute). home price in my area for 3bd 2bath are about 1.3M for great schools and a 30 min commute (1 way). homes can be had for ~900k an hour away, but don't think i can do that kind of commute.
how much to buy:
my conflict (maybe its emotional) is i don't want to work anymore years than i absolutely have to (work isn't boring but its pretty meaningless), but it seems i could really use the home right now given i have 3 kids to raise/educate. If i buy the 1.3M home I'm signing up for at least 15 year mortgage with 6% rates, I'm not sure my paycheck is stable enough at that high of income for that long, due to stress level. wife can work in 5 yrs or so but she'll likely be in the 120k salary range if she can find a job given her gap in unemployment. on the other hand, i don't plan on leaving this area, b/c earning this wage while i still can, helps with earlier retirement (early if all works out).
typing it out sounds like i want to have my cake and eat it too, maybe i just have to bite the bullet and buy the house. wondering if folks have words of advice (math or otherwise) on my situation. thanks for the long read.
personal: 3 toddlers, HCOL/VHCOL area, wife is home maker, we are renting a 2 bedroom in downtown closer to my work, spacing is starting to get tight. no debt.
income: ~370k a year (me only). previously I made like ~150k in MCOL area, so still getting use to implications of HCOL and higher income. current job can be stressful, I'd say 70% confidence i can maintain this income for another 5 years, maybe 50% confidence i can maintain this income in 10 years.
networth: ~2M (800k in 401k, 1.1M in post tax brokerage, 130k in savings acct.)
expense: @~70k a year (3k rent and mostly spent on food). family/spouse are pretty happy with life, don't need to spend much more to be happier.
buy vs rent:
our rental 2bed 1bath condo is 3k a month, if we move up to 3bed 2bath it'll likely be 5k a month, both in good locations (30 min commute). home price in my area for 3bd 2bath are about 1.3M for great schools and a 30 min commute (1 way). homes can be had for ~900k an hour away, but don't think i can do that kind of commute.
how much to buy:
my conflict (maybe its emotional) is i don't want to work anymore years than i absolutely have to (work isn't boring but its pretty meaningless), but it seems i could really use the home right now given i have 3 kids to raise/educate. If i buy the 1.3M home I'm signing up for at least 15 year mortgage with 6% rates, I'm not sure my paycheck is stable enough at that high of income for that long, due to stress level. wife can work in 5 yrs or so but she'll likely be in the 120k salary range if she can find a job given her gap in unemployment. on the other hand, i don't plan on leaving this area, b/c earning this wage while i still can, helps with earlier retirement (early if all works out).
typing it out sounds like i want to have my cake and eat it too, maybe i just have to bite the bullet and buy the house. wondering if folks have words of advice (math or otherwise) on my situation. thanks for the long read.
Statistics: Posted by Croissant — Mon Aug 12, 2024 1:47 am — Replies 3 — Views 285