Does it make sense to buy a $1m house with how high interest rates are?
I live in Town A - and have a pretty stable renting situation paying $4k/month. Landlord and us have a good relationship and I do most of the repairs around the house so I make his life easy. I don't love Town A but the schools are great kids are happy and wife is happy so unlikely that we are going to move from this town in the next ~10 years.
Cash/Taxable is approx $700k, wife and I have pretty stable jobs and combined income ~$470k. Retirement accounts are fine and wife will get a small pension too. 3 kids under 12 years old and combined 529s at $150k.
A $1m house will push monthly payment up to ~$7k.
I'm have a hard balancing all this. I've owned homes before but I never thought I'd be renting in my 40s so part of me wants to pull the trigger. On the other hand I'd be spending $36k more per year plus I drop my cash position by $200k which is earning 5% ($10k) - so that's $46k/year and haven't even done any improvements to the house or anything.
Please help me bogleheads make sense of all this.
I live in Town A - and have a pretty stable renting situation paying $4k/month. Landlord and us have a good relationship and I do most of the repairs around the house so I make his life easy. I don't love Town A but the schools are great kids are happy and wife is happy so unlikely that we are going to move from this town in the next ~10 years.
Cash/Taxable is approx $700k, wife and I have pretty stable jobs and combined income ~$470k. Retirement accounts are fine and wife will get a small pension too. 3 kids under 12 years old and combined 529s at $150k.
A $1m house will push monthly payment up to ~$7k.
I'm have a hard balancing all this. I've owned homes before but I never thought I'd be renting in my 40s so part of me wants to pull the trigger. On the other hand I'd be spending $36k more per year plus I drop my cash position by $200k which is earning 5% ($10k) - so that's $46k/year and haven't even done any improvements to the house or anything.
Please help me bogleheads make sense of all this.
Statistics: Posted by imsomeguy — Sat Mar 23, 2024 9:41 am — Replies 4 — Views 211
