Should I buy a 1 mil house ?

VMware meisyebrj
Mar 31 67 Comments

Net worth 550k . Tc 250k . Currently renting.

comments

Want to comment? LOG IN or SIGN UP
TOP 67 Comments
  • Intel phdsbn
    The primary question to buying a house: do you have kids. If not, there’s no reason to own.
    Mar 319
    • Northrop Grumman / EngHowCouldYu
      False
      Mar 31
    • VMware meisyebrj
      OP
      No kids. Do you think buying a condo instead would be better keeping investment in mind.
      Mar 31
    • Vistaprint / Eng
      FREEBC

      VistaprintEng

      PRE
      Cimpress
      FREEBCmore
      Lol, what does having or not having kids have to do with anything?
      Mar 31
    • Intel phdsbn
      Because renting vs owning as a financial transaction says renting right now is better. Owning limits your ability to move to better your career or change your lifestyle given the transaction costs. But owning a home is good for kids for stability and social purposes.
      Mar 31
    • Vistaprint / Eng
      FREEBC

      VistaprintEng

      PRE
      Cimpress
      FREEBCmore
      I'm sorry, but I have to disagree. I've owned three homes and moved three times for jobs and am position very well financially.

      If you're willing to foot the bill for moving you only have to stay in the house for 5 years for buying to make sense, if a company is paying relocation (which they usually would once you get into a certain pay range) then even if you're only staying somewhere for a year or two it makes sense to buy.
      Mar 31
    • VMware meisyebrj
      OP
      You mean you will sell the old one and buy a new one in the new location with the proceeds . Right ?
      Mar 31
    • Vistaprint / Eng
      FREEBC

      VistaprintEng

      PRE
      Cimpress
      FREEBCmore
      Yes, that's what I've done with each one. Although I have colleagues who have kept the first one as a rental property, they just don't have as much equity to put down on the next house.

      If a company is paying for relocation, they pay the realtor fees which saves you a ton of money, usually 6% of the value of your property.
      Mar 31
    • Vistaprint, you have it all wrong. I'm pretty sure if you sold and bought that much you left a LOT of money on the table compared to investing your down payment in stocks.

      I agree with the above comment. Given the current market unless you have a need for a lot of stability (kids typically), don't put yourself in a home with buying. Renting is almost always better
      Apr 1
    • Intel phdsbn
      Correct, if your transaction costs are zero, then buying makes more sense. That is a rare occurrence.
      Apr 1
  • Net worth includes 401k?
    Mar 312
  • Facebook fhu4ns5y6
    No
    Mar 310
  • Uber Rhsuhfn
    Yes. I have rarely heard people regretting buying houses.
    Mar 311
    • Intel phdsbn
      -not said 2008-2010
      Mar 31
  • LinkedIn stuffy🐷
    You should buy 1.5M. You can’t get anything decent for 1M.
    Mar 312
    • VMware meisyebrj
      OP
      Not everyone lives in Silicon Valley
      Mar 31
    • LinkedIn stuffy🐷
      OK, 1M is easy peasy for you. But if the house is too big for you then buy something smaller and cheaper.
      Mar 31
  • New / OtherAuntHilda
    So why did you tag those three companies? Because they know more about real estate?
    Mar 310
  • Why not? Go for it. Don’t listen to the naysayers on this board. It is a great investment.
    Mar 311
    • VMware meisyebrj
      OP
      Yes I am mostly considering about investment. All my money are currently in stocks, mutual funds , etfs , savings. I was thinking buying may lock down my rent. If 1 mil is not do able , I was thinking if I should buy a cheaper condo instead.
      Mar 31
  • Oscar 🐨koala
    Popular opinion on Blind is usually rent and invest. I am on the opposite side. I believe in owning a property. If you don’t plan on moving away, then buying it is a good life time investment. If your base is 150k then you are looking at around what 7k a month after tax? And how much are you planning to loan?

    I assume you do 20 years and 400k loan, then you are going to be paying at least 3k monthly, leaving you just 3.5k or so monthly from your base pay. But don’t forget if you plan on renovate that can easily be 100,000 for some people.

    It’s doable.

    Some of these numbers are mine - I have a 350k loan.
    Mar 311
    • Google mcml
      Why assume a 400k loan? 20% down payment on a million leaves 800k.
      Apr 1
  • Facebook k7gsun01&
    What would your DTI? If it’s more than 35% then no.
    Mar 318
    • VMware meisyebrj
      OP
      Currently renting. No debts.
      Mar 31
    • Northrop Grumman / EngHowCouldYu
      DTI?
      Mar 31
    • Uber ipojesus
      Debt to income ratio.
      Mar 31
    • Facebook k7gsun01&
      What would be your future DTI after buying the house?
      Mar 31
    • GoDaddy / Engemployee07
      Is DTI = debt / TC? If so, are you advising against borrowing more than 35% of your TC? That probably isn't right...

      Or is DTI = TC / debt? Which means you shouldn't borrow more than 3x your TC?
      Mar 31
    • Facebook k7gsun01&
      DTI is calculated by using all your monthly liabilities (taxes, insurance, debt payments) over your gross base income. I would exclude shares, as stock market fluctuates.
      Mar 31
    • Netskope
      steveWoz

      Netskope

      PRE
      Cisco, Symantec, Okta, Zscaler
      steveWozmore
      Debt to income ratio is something which landers take into consideration before giving loan to you... its basically (per month installment / your pretax income).. most banks will want to keep this below 0.4 personally i would recommend it to be 0.25 or less, given the percentage of taxes we pay at such income levels....
      Mar 31
    • GoDaddy / Engemployee07
      Hmm, I guess you wouldn't include rent as that would be going away if you were buying a house. 35% still seems difficult to achieve since taxes on their own can be 30%
      Mar 31
  • Tesla bICb68
    If you have 550k in cash - go for it.
    I’d consider buying a condo.
    It’s the best for the first time buyers.
    Mar 314
    • VMware meisyebrj
      OP
      Around 400 (cash plus stocks ) . some of which I can sell for down payment. Remaining is 401k and other stuffs which are locked down for other reasons . I can find a good condo for 500k around my area.
      Mar 31
    • Facebook / Engonjetplane
      Condos are not good in terms of appreciation.
      Apr 1
    • VMware meisyebrj
      OP
      Should I buy a cheaper condo so that I can make it a rental property when I move to a bigger house later ?
      Apr 1
    • New / Other
      BayNomdChk

      NewOther

      BIO
      Currently working at an SF startup. Past: One successful exit.
      BayNomdChkmore
      You can buy a nice condo in Lumina or Infinity towers in soma for 1M. Over 1,000 sq ft. Good for renting and living. Lumina was the best place I ever lived. The units are always leased out quick.
      Apr 2
  • Roku kkUA10
    Not a troll but can someone explain why is buying a bad decision here?
    Apr 13
    • Vistaprint / Eng
      FREEBC

      VistaprintEng

      PRE
      Cimpress
      FREEBCmore
      Well some are wondering if OP can afford payments, others just forget that they have to pay rent which is definitely a worse investment🤷
      Apr 4
    • Yelp djang0
      @vistaprint
      Buying is always better than renting is a naive view
      Paying renting makes sense for many areas of bay area
      Apr 8
    • Vistaprint / Eng
      FREEBC

      VistaprintEng

      PRE
      Cimpress
      FREEBCmore
      Sure, it's an over-simplification. Everyone should actually run the numbers in whatever market they're in. I've never run the numbers in the bay area, but in most cases that I have rent payments are significantly higher than a mortgage on a similar home. Maybe rent is cheap but buying is high in the bay due to speculation? If that's the case then maybe renting makes more sense.

      You've also got to compare apples to apples. Many people will compare renting a one bedroom apartment to buying a 3 bedroom single family home. Those are two totally different things that cost vastly different amounts of money.
      Apr 8
  • Apple Dr. Xi
    Yes with that saving and TC I would buy up to 1.7M
    Apr 10
  • Pinterest pilxinston
    Yes
    Apr 10
  • Sina.com / Eng
    WLB

    Sina.comEng

    PRE
    Facebook, Apple, Amazon, Netflix, Google
    BIO
    Software Engineer and former phd candidate in biophysics
    WLBmore
    yes,for sure, you can do it.
    Mar 310
  • Intel / Engbobwho?
    Sure. Go for it
    Mar 310
  • LeanTaaS ♥️ data
    What's your base pay?
    Mar 312
  • SAP mooooo
    Are you getting any rental income
    Mar 311
  • Gigamon / Eng
    chitchor

    GigamonEng

    BIO
    what's th is
    chitchormore
    What all do you include in net worth?
    Mar 311
    • VMware meisyebrj
      OP
      401k , savings , checking, investments(stocks etc)
      Mar 31
  • Northrop Grumman / EngHowCouldYu
    How old are you
    Mar 311
  • Reddit y34bas
    No
    Mar 311
  • Movement Mortgage QSaS36
    run the figures to see what renting vs purchasing look like ......if #s are equal and you are fine with renting ...stay the course ...if you want the benefit of purchasing as an investment - worth considering
    Apr 80
  • New / MgmtVSwf01
    If you have to ask then no. Not because of your TC or net worth but because you need to be able to make decisions for yourself at this level.
    Apr 10
  • Cisco abbaba
    No, max 950k for 30 year loan, max 630k for 15 year loan. Assuming 20% down.
    Apr 10
  • Google / Eng
    moogli

    GoogleEng

    BIO
    🙊🙊
    mooglimore
    When calculating the monthly expenses, please factor in the cost of property taxes you will be paying. It's doable. But risky.
    Apr 10
  • Shopkick TC PUDP
    If you would be okay with living there 10 years from now then go for it.
    Apr 10
  • New / EngoUkwp3
    No those numbers are nuts. With your tc you should be shopping in the 4-600k range if your responsible.
    Mar 310
  • Microsoft gfba68
    Borderline, but you can afford it if you have 20% to put down
    Mar 310
  • Nvidia pie-d-pie
    No
    Mar 310
  • Credit Karma kqqo46
    You can do it in rob Schneider voice
    Mar 310
  • SAP ghtuhd
    Yes
    Mar 310

Join verified employees in our anonymous social network!Download the app!

close