Will you buy this 2.6M house with my TC and cash?

Microsoft dzxsaas
Jun 6 41 Comments

I move from Bay Area to West Bellevue for a new job at FB. Initially we set the limit to 2M, Then found a 2.68M house. We really liked it and the school is the best (Medina) for two kids. The monthly payment is 13000, if I put 30% down. My current home mortgage payment is only 3000.

TC: 460+270. My savings can only cover 30% down payment because of low TC I had at MSFT. I feel I am stretched to the max.

Will you buy this house in my situation?

328 VOTES SELECT ONLY ONE ANSWER
VOTE VIEW RESULT

comments

Want to comment? LOG IN or SIGN UP
TOP 41 Comments
  • Amazon xoomer
    Since you are just joining FB, why don't you rent for a year somewhere like say Mercer Island. Survive in FB for year 1 - then decide if you like the culture and ready to toil there for multiple years. FB can be brutal culture coming from Microsoft.
    Jun 6 0
  • Amazon PT Cruiser
    You’re going to have a heart attack and die if you get laid off from F with a mortgage like that.
    Jun 6 0
  • Oracle alwzangry
    If tech jobs are the only sources of income, you're betting too much on keeping the jobs if there's a downturn in tech.
    Jun 6 0
  • New FEiV01
    Bad idea, go smaller and own more of the house.

    A secret from someone who grew up in a huge house and who also worked with the families that owned them for years: I've never seen anyone's family be significantly improved by a huge and insane house, but I have seen them cause problems.

    Small is better, almost every time. Any schools on the Eastside are great. Even our B districts produce people who go to FAANG. I'm from Snohomish, cute small town, probably a B grade district and tons of my classmates are at Amazon/Microsoft.

    Spend less, even if you're a little farther North.
    Jun 6 0
  • Amazon xoomer
    My family TC is $1.1m (Amazon and another FAANG). We moved to US in the last five years and have couple of mil savings. I still bought a house costing me around $1.2m. One that can be paid off by one persons earning or if the market (&comp) crashes by 50%. Maybe I am a conservative one, but hey I like to spend cash on experiences!
    Jun 6 0
  • LinkedIn i130
    Dude dont be crazy.u can kiss ur mental health goodbye when u make those payments. Be a little frugal and learn to save
    Jun 6 0
  • Facebook
    Instagrаm

    Facebook

    PRE
    Google, Microsoft
    Instagrаmmore
    TC breakdown? What’s that 460 and 270?
    Try Kirkland 98033.
    Jun 6 2
    • Snapchat L6; >12yoe
      Guessing it is op and their partners TC
      Jun 6
    • Facebook
      Instagrаm

      Facebook

      PRE
      Google, Microsoft
      Instagrаmmore
      Then sounds like OP is E6 with the base of around 220k, which means he’ll be giving it all (about 13k after tax) to pay the monthly dues over the course of 30 years, and living for his stock grant and spouse’s comp.
      I’d look for something more affordable, tbh. A place to live isn’t worth 100% of my salary.
      Jun 6
  • Wayfair bnKI45
    It's much cheaper and more flexible to rent than buy there. Do yourself a favor and avoid all the stress that comes with having massive monthly liabilities like that
    Jun 6 1
  • Snapchat L6; >12yoe
    Do keep property taxes and maintenance expenses that come with a big house in mind.
    There are tangibles and intangibles with a house purchase. See what among them is most important for you.

    Also, don't expect to reason about these kind of indulgences to yourself or anyone else. It is not going to be possible!
    Jun 6 1
    • Microsoft dzxsaas
      OP
      Thank you for the advice. 13000 includes property tax.
      Jun 6
  • Personally I would calculate affordability purely based on base salary income (treating equity and bonus aside as they are variable). Then decide if 13k budget is reasonable.
    Jun 6 0
  • Microsoft undefined
    There’s really no reason to spend that much around Seattle/Bellevue unless you really really want to. Medina is the most expensive neighborhood and the only people I know who live there are Bill Gates and some other “old money” rich people. There’s not much to do there, and it just seems like an odd place to live if you’re just moving to the area.

    Get a nicer place for less in a more interesting neighborhood, whether it’s east side or over in Seattle.
    Jun 6 0
  • Nvidia wagecuck
    Do not buy, will be worth 1.3M after the recession hits.
    Jun 6 2
    • Microsoft undefined
      That’s both extremely unlikely, and not super relevant unless there’s also an urgency to sell at that time.
      Jun 6
    • Verizon heamer
      Foreclosure do wonders... JPMC foreclosure properties sell at 40 cents for a dollar they lent..
      Jun 6
  • This comment was deleted by original commenter.

    • New / R&D 2🐥same🕜
      Not if they can't make the payments anymore... Or their kids could get super stressed from the competitiveness and go nuts.
      Jun 6
    • Rocketship Education HxfL58
      I can see what you mean. my high school was one of the top in the state and it definitely stressed the hell out of a lot of people. but also helped elevate a lot to really good schools and great scholarships. just depends on the kids makeup I guess
      Jun 6
  • Goldman Sachs f1nt3ch
    Few things to consider

    1. Value Proposition for you and your kids in buying this home. Kids bright future?
    2. You can always pre-pay the loan if you have more capital
    3. Right now, cost of credit capital (4%) is cheap.
    4. Do you have savings of your 6 months of payment after your initial down payment?
    5. Let’s take worst case scenario. You lose your job and you can’t make payments. You can always sell or borrow against your home equity. But, that means you are accumulating more debt.
    5b. The other option is to sell your house. What is the worst case downside price of the house? You can think about that.
    Jun 6 1
    • New FEiV01
      My family did this and it devastated them from 1M+ net worth to 300k in debt and no assets.
      Jun 6
  • SAP RrWs73
    Buy. Medina will hold its value even if other neighborhoods crash. It’s one of few places rich people will consider living.
    Jun 6 0
  • Square / Eng edcz50
    What’s your net worth?
    Jun 6 2
    • Microsoft dzxsaas
      OP
      1M
      Jun 6
    • Square / Eng edcz50
      Personally I wouldn’t but I am more risk adverse as far as debt is concerned. I own my place out right and it’s half my net worth
      Jun 6
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    The next credit crisis will be 🔥
    Jun 6 0
  • Amazon ariel88
    Why not consider sending them to a private school instead?
    Jun 6 0
  • LinkedIn Zeiwkf5
    There are plenty of more affordable houses in Bellevue. Peace of mind is worth a lot too. 13k/month sounds pretty insane and unnecessary.
    Jun 6 0
  • Microsoft djice
    For me it’d be a burden long term. consider when you want to retire, and putting your kids through college. Also, bc your friends in that hood will be way richer then you there will be a lot of pressure to keep up (we have our kid in a fancy private school that is probably like Medina schools and it’s over the top). And your net worth isn’t that high yet. In addition a lot of other public schools are great outside of Medina. we recently bought a 1.2 m house, TC is 430 (250 + 180), and we put 800 down. I’m happy we were conservative bc we aren’t dependent on both jobs to cover it. And we’ll be able to pay it off in the next 5 yrs if we keep our current jobs, which means we’ll be able to pay for college for our kid and stay in the house if we want longer term.
    Jun 6 0