Should I buy a house
I am a SDE/64 Base 165 RSU+Bonus 50 Unvested stock 200k I have 300k savings including 100k 401k. Planning to buy a house for around 760k. What ever is available within 30mins of commute. Kindly advise if it's a bad idea ?? Current Rent + utilities 2500
Why only 750k+ go for 1.5M. need to fit in with other 64/65s
Is it the only income in family?
Yes, I had scoop income but that stopped as insurance doesn't cover scoop
I wouldn’t count on bonus piece as guaranteed if and when there’s a slowdown. So that leaves you at about $4k a month for a 750-800k home with about 20% down. Mortgage rates are falling too, so I think you should be okay!
How much liquid cash do u have available for down payments ?
200k
with that liquid I think you should buy it.
Of course you should buy. But remember the location is crucial for real estate. Don’t buy anywhere north of Totem lake, east of lake Sammamish or south of I-90 freeway (except Mercer island).
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Could you explain why such a restrictive area for buying a house. Won’t these areas also see growth over the next few years?
Golden rule, mortgage should not exceed 28% of your annual income. 760k can buy you a multi bedroom home. If your single rent out the other bedrooms or turn your basement to an apartment and rent it out. This can reduce your cost.
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With rent/utilities that high you should definitely buy. Build equity for yourself as an investment, instead of spending your money to build someone else's wealth 👍🏾
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30 mins commute in today's traffic is not very far. If you can find a decent place for 760k within that range definitely buy.
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Any other source of income or expense? Childcare, auto loan, credit card etc. with 20% down on 750k your monthly mortgage payment will be around 3500-4000 depending on your credit score. Can you spare about 1500 and still live comfortably? Homeownership comes with other hidden costs so just keep some extra cash in hand. Don’t go all out.
Ya I have a kid. Thanks for pointer
Always keep in mind you'll be paying the same mortgage which you pay as a rent now(It wouldn't be a significant difference). Think in this way, you are just investing your 200k to buy some property. BUT you'd be happy to see after 15 years you OWN that house and your 200k is now worth >1M or may be more.
City?
Redmond