Housing

How much of a house would you buy?

HPE / Biz DeviLuvMoney
Jan 9

Moving from Dallas to Seattle (Redmond area).
Family of 4, we currently live comfortably in a 3300sqft home. We know we’ll need to downsize to probably around 2000sqft.
We’d like to be in a good school district, but as you can imagine the prices a super high.

That said, with a comp of 165k Base, 25k bonus and 20k rsu and 200k in down payment and no debt otherwise, what range do you guys think we should be looking at?
Currently looking in the 700k-1M range, but not sure if that’s stretching it too much.

Other question is... should we rent for a year or so, to see where the market is going? (We’d prefer not to, so the kids don’t have to change schools many times)

Thanks in advance for any advice you may have!

comments

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  • New / Other
    Tarot

    NewOther

    BIO
    Somewhere in the future.
    Tarotmore
    How are ppl buying these $1M on less than $200k salary with one income and kids? How do yall budget? Maybe I travel too damn much.
    Jan 92
    • PayPal Contrarian
      Save more, spend less, get a 30 yr fixed rate mortgage. With $150k/yr and a few years of a high savings rate (high down payment) you can get a $1m house without too much difficulty.
      Jan 9
    • New / Other
      Tarot

      NewOther

      BIO
      Somewhere in the future.
      Tarotmore
      I guess my priorities are suspect. Moving to the Bay Area. That and Seattle housing blows my mind. You dont get much for your dollar. So the question is will I stay long enough to make it worth it.
      Jan 9
  • Facebook public2
    Bellevue is where you want to be for schools if you can swing it.
    Jan 93
    • Chase Amhit
      Not all schools in Bellevue are good
      Jan 10
    • Microsoft SIRM47
      Aren't all the high schools in the national top 100 list?
      Jan 10
    • Facebook public2
      Yea, some are top 15 and others are top 100. One occasionally cracks top 10.
      Jan 10
  • Microsoft Traveler27
    Rent for for one year
    Jan 91
  • Google hjjn
    I’d wait at least until summer to buy.
    Jan 91
    • Chase Amhit
      Buy now or after summer. Summer is a worst time to buy ( higher price, higher interest)
      Jan 10
  • Microsoft PChq06
    Traffic needs to be considered... north or south you will spend most of your time in commuting... east... not so bad, less expensive and schools are top rated
    Jan 102
    • HPE / Biz DeviLuvMoney
      OP
      Looking in the Sammamish area, but looks like it’ll take a good 30-1h depending on traffic. I guess that’s to be expected?
      Jan 10
    • Microsoft PChq06
      I live off exit 22 on i90 and morning commute to main campus is 25-35 minutes
      Jan 10
  • Bought my home for cash. Still live rent free. This is one place size doesn’t matter for this gal. ;)
    Jan 91
    • New / Eng
      JCoM17

      NewEng

      BIO
      Structural engineer switching to data science.
      JCoM17more
      care to give some more details? tc, area, house price, years it took you yo save? I am thinking of doing the same or at least minimizing my mortgage by waiting a few more years.
      Jan 10
  • Databricks Gjmxea
    $20k RSUs & $165k base salary per year to pay for a $500k-$800k mortgage plus family expenses?!? ~$3,500/month PITI for $500k mortgage or ~$5,400/month for $800k mortgage on ~$12,000/month take home pay (assuming tax rate of 20%). Your lower bound would be closer to my upper bound with a more conservative approach.
    Jan 90
  • Facebook Dogfart
    Rule of thumb in normal housing markets is that you should be able to swing a mortgage that is 3x salary without much pressure. I'd say that's fairly accurate.

    So with 200k down, that makes ~700k reasonable in your case.
    Jan 90
  • Microsoft satyaceo
    Prices are coming down. You might not want to rush a lot.

    That said, Interest rates are hiking. Keep that in mind
    Jan 90
  • Microsoft 0xdeadbeet
    Make sure you understand your commute. Traffic in Seattle is horrible.
    Jan 102
    • New / Eng
      JCoM17

      NewEng

      BIO
      Structural engineer switching to data science.
      JCoM17more
      you call 40 mins commute horrible?:)
      Jan 10
    • Microsoft SIRM47
      Yes, when you live in Bellevue and have a 10 minute drive to main campus - anything longer is madness
      Jan 10
  • Microsoft Bombsh3ll
    Best school districts are in Bellevue with lake Washington behind.

    House prices dropping so I would wait.
    Jan 91
    • HPE / Biz DeviLuvMoney
      OP
      Thanks yeah I’m leaning towards to renting.
      Jan 9
  • Juniper Upworker
    Renting will save you on taxes, they are very high compared to Dallas.. i say rentnfor a year until you get a feel for the area you like.. Woodinville was close to the Dallas feel for us with larger yards and non cookie cutter homes.
    Jan 91
    • New MW2018
      I don’t think the property taxes are higher in WA/Redmond than in Dallas. In Dallas, property taxes range from $11,600/year to $24,000, depending on the house of course. I don’t remember the taxes being this high in WA.
      Jan 10
  • Wait a year. Downside risk is higher than upside risk. You will likely not get priced out if you wait but you may save a bunch or get a better home for the same amount of money if the downside materializes. China which was touted as the biggest source of investments in housing is clearly slowing down so the capital inflow from there will be much slower and if the amzn, Msft stocks crash - look out below.
    Jan 100
  • Facebook of Dr rt
    Family of 5, bought at $1.1M in Redmond Ridge, similar income. Rented for 6 months to get a feel for the area, house prices took a dive in fall and we bit. Schools are great. I had no interest in dealing with the traffic north of 124th.
    Jan 90
  • Financial Engines / Datafrugalguy
    Buy if you think you will stay in Seattle area for long term (~10 years). do you have second income ? If so 750-1m is a very good range. For one income would probably look at lower end of spectrum.
    Jan 93
    • HPE / Biz DeviLuvMoney
      OP
      We don’t. We just have real estate income in Japan, but that’s to pay the college for our kids. So you think more in the 700-800k if only my income? Thanks for the quick reply!
      Jan 9
    • Financial Engines / Datafrugalguy
      Yes. At current interests it might translate into a reasonable payments to balance your cashflows.
      Jan 9
    • HPE / Biz DeviLuvMoney
      OP
      Ok thank you!
      Jan 9
  • Afiniti JMXK67
    Try North pointe neighborhood in Mill Creek, lots of Microsoft employees live there. You could easily get a huge newer house for way less. The schools are good.
    Jan 91
    • HPE / Biz DeviLuvMoney
      OP
      Will definitely take a look, thanks!!!
      Jan 9
  • Intuit snack
    Which location?
    Jan 91
    • HPE / Biz DeviLuvMoney
      OP
      Not sure yet - looking around Woodinville, Bothell and Sammamish area currently.
      Jan 9
  • Intel Jopdi(78
    Snoqualmie - great for families, cheaper
    Jan 100
  • New MW2018
    What area were you in in Dallas?
    Jan 90

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