Looking into buying a $1.15m house and looking for some guidance.
Wife and I both work in the healthcare industry.
House:
$1.15m. 150k down payment, 20k closing costs, total est. ~$175kish at closing.
Income: HHI 745k gross. $482k after tax and wife's 401k/benefit.
Savings:
200k cash
30k brokerage
Debts:
175k student loans (0% at the moment but will likely go back to 6% in the next several months)
230k current mortgage. Plan to rent this house out or sell it. Rent will pay for mortgage plus a few extra hundred/month.
Current delimma is that I will owe approx. $100k in taxes in April. With this house, I will be spending $175k in closing, leaving me with around 55k liquid. We have Feb and March to save the 55k into what we owe in taxes to make the payment. In addition, we would have to drop our student loan payments fairly significantly if we would like to build any sort of savings if we planned to continue maxing our 401k contribution.
My head says we can make this work but my gut says to pass on this house. Stay put, pay off loans, and build liquidity. Come back to buying the dream home in another year or two when things have settled.
Wife and I both work in the healthcare industry.
House:
$1.15m. 150k down payment, 20k closing costs, total est. ~$175kish at closing.
Income: HHI 745k gross. $482k after tax and wife's 401k/benefit.
Savings:
200k cash
30k brokerage
Debts:
175k student loans (0% at the moment but will likely go back to 6% in the next several months)
230k current mortgage. Plan to rent this house out or sell it. Rent will pay for mortgage plus a few extra hundred/month.
Current delimma is that I will owe approx. $100k in taxes in April. With this house, I will be spending $175k in closing, leaving me with around 55k liquid. We have Feb and March to save the 55k into what we owe in taxes to make the payment. In addition, we would have to drop our student loan payments fairly significantly if we would like to build any sort of savings if we planned to continue maxing our 401k contribution.
My head says we can make this work but my gut says to pass on this house. Stay put, pay off loans, and build liquidity. Come back to buying the dream home in another year or two when things have settled.
Statistics: Posted by GeauxTigers100 — Fri Jan 24, 2025 3:20 pm — Replies 14 — Views 882