Would you buy this house if you were in my shoes?

Google Krepton
Sep 15 76 Comments

Married and expecting a baby soon, single income ~$320k TC. I have around $500k in cash/investments and another $180k in 401k. I save ~$180k/year.

I am new to Google and don’t feel that my job is stable (work is challenging).

House price is $1.2M.

Would you buy it or wait to save more and get more confidence in my job stability?

My personal thoughts were that even if I don’t do well at Google then I will save another $100k by the time I am out. So I can theoretically coast without a job for ~5 years.

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TOP 76 Comments
  • Amazon YSerious?
    Yoe?
    Sep 15 7
    • Google Krepton
      OP
      PhD
      Sep 15
    • Netflix madclown
      Do u regret doing PhD?
      Sep 15
    • Google Krepton
      OP
      Worst decision ever
      Sep 15
    • Netflix madclown
      You seem like a smart individual careful with money - you’ll know when it’s right and low risk to make this call - don’t assume other people know better than you.
      Sep 15
    • Netflix madclown
      You probably know this: calculate how much you need to keep in cash to afford mortgage +living expenses for 8mo - and never ever put it in stock - you can’t touch this emergency fund
      Sep 15
  • Juniper Pliny Jr
    Do it. Interest rates are at historic lows.

    You will always get your money back if you hold onto the house for over 5 years.
    Sep 15 2
    • Netflix madclown
      Incorrect
      Sep 15
    • Rakuten / Ops
      tooQ10

      Rakuten Ops

      PRE
      Rakuten USA
      BIO
      Obligatory: YoE 20, TC 41k. Such is life for us non-SWE office monkeys!
      tooQ10more
      If interest rates rise, housing list prices go down as people borrowing to buy homes cannot afford a high price (because they have to pay more in interest). This is good for cash buyers but bad for people who overpaid when interest rates were low.
      Sep 15
  • eBay youknow2
    Btw how do you save 180k with 320k TC?
    Sep 15 6
    • Bloomberg / Eng F.U. money
      I’m sorry but on 320K the taxes are like a 100K more than what you said. 🙄
      Sep 15
    • Google Krepton
      OP
      Seattle, married, maxing out pre tax 401k, HSA, etc. $24k standard deduction. Definitely not more than $45k and it doesn’t change much of the outcome, nor is this the main topic anyway
      Sep 15
    • Bloomberg / Eng F.U. money
      Trying to verify the numbers.

      On topic then, I would say, don’t deal with a house now especially if work is challenging. Focus on delivering and grow your cash reserves. That’s what I would do. Don’t think about coasting without a job. It would put a strain on your marriage and you don’t want to lose any of the money that you have saved up.
      Sep 15
    • Google Krepton
      OP
      You turned out to be right. My mind was stuck with Microsoft compensation. I paid $54k on $290k income last year
      Sep 15
    • LG lzml
      wtf... I need to move to Washington :/
      I live in they bay, TC was about 180 last year and I paid around $54k in tax...
      Sep 17
  • Hulu TgKgh2897
    Wait a little..save a bit more....kids are expensive and get settled in your job & if you want jump ship you won't be as stressed out
    Sep 15 0
  • Yelp / Eng sJJv80
    You save $180k / year. House expenses are significantly less than that. How is this much of a question?
    Sep 15 1
    • Google Krepton
      OP
      Job security part
      Sep 15
  • Netflix madclown
    320k tc is like 170k post taxes. How on earth can you save 180k a year??
    https://youtu.be/eb8896qtFnY
    Sep 15 9
    • Expedia Group forecastno
      Yeah I question that tax rate too, you should be paying way more than a 11% federal tax rate on 300K+ in wage income, that does not add up plus what about social security tax? How much do you put into 401K?
      Sep 15
    • Google Krepton
      OP
      Social security is capped at $128k I think?
      Maybe I don’t have the exact figure but I do save $200k with 401k match.

      My expenses are very low: $2k rent + bills, $1k food, clothing etc, $500 misc =~$40k.
      Sep 15
    • Expedia Group forecastno
      I dont want to belabor the point, and i am referring to the tax point, not what you save, but in years where I make 300K plus, my federal taxes were at least 75K, not including social security and I live in Seattle, am married and I have a 401K too so unless you have some other way of shielding wage income......?
      Sep 15
    • Google Krepton
      OP
      You know I have just opened turbotax to review things. I paid $57k in taxes and got $4k in refund. So yes I was wrong. My income last year barely touched $300k.

      Looks like my mind was stuck in the Microsoft era lol
      Sep 15
    • Visa Dtrm86
      My question exactly. At 300k income after tax you're taking home about 170-180k. They are also maxing out their 401k it looks like, so 150-160k take home. Maybe saving 100k per year. Baby will cut that in half, then you're hardly in shape to own a house. Taxes will be 20k per year at least and the payments/upkeep will be 30-40k more than the current 2k per month in rent.
      Sep 15
  • LinkedIn Wiener
    1.2M house is either too small/not in a good neighborhood/long commute. I would look at something better.
    Sep 15 3
    • Google Krepton
      OP
      Seattle.
      Sep 15
    • LinkedIn Wiener
      I see. If the house is good enough for the next 10 years then go for it.
      Sep 15
    • Netflix madclown
      Wrong. Get a house small enough to live in for 5y. Upgrade later if necessary
      Sep 15
  • Salesforce mzkfl
    Create a poll
    Sep 15 2
    • Google Krepton
      OP
      Done
      Sep 15
    • Netflix madclown
      Don’t use poll results to make decision
      Sep 15
  • Facebook irqL16
    Don’t expect much appreciation. Economy is starting to turn. You’re better off renting for a few years
    Sep 15 1
    • Lyft done2
      Why do you think the economy is turning now?
      Sep 15
  • Salesforce benimeoff
    If you work at Google you shouldnt worry about job security......Your a top candidate you will always have a job at a lower tier company....
    Sep 15 0
  • Amazon vFhn12
    The fact you save 180k/year tells me you have had high expectations roles in the past so I’m not worried about being new to google. I assume you don’t have other debt. Your Savings and TC support a 1.2M home. Go for it man! Honestly the bigger consideration is how long you’ll be there and that you love the area. <5 years would mean you might consider renting instead. There is no perfect algorithm on this one. I say 5 years and then homes skyrocket in next 2.
    Sep 15 2
    • Google Krepton
      OP
      Thanks. I am just always very cautious and I don’t want to end up in a bad financial mess. The $1.2M is huge and I don’t know if I’ll keep pulling that much for long.
      Sep 15
    • Netflix madclown
      It is huge and you already know the answer - be causious
      Sep 15
  • Facebook NSA inc
    If you’re not committing to staying 10 years (the full life cycle of a market) then don’t do it
    Sep 17 0
  • Google / Eng hooli.xyz
    Since you are new at Google, wait until you have gone through two perf cycles. I sense that you’re just going through imposter syndrome if you think you may not make it at Google. After two perf cycles, you’ll see that you’ll be just fine.
    Sep 15 0
  • New farmboy
    How old are you? That will factor in your earning potential and other intangible factors.
    Sep 15 4
    • Google Krepton
      OP
      35
      Sep 15
    • New farmboy
      Sounds like you have a lot of boxes checked. According to my friend at CBRE (commercial real estate) structured products, you should buy a house in to live when YOU are ready, don't try to time the market. Hope that helps some.
      Sep 15
    • Google Krepton
      OP
      I am not trying to time the market, just not sure about my financial situation so looking for second opinions
      Sep 15
    • Netflix madclown
      Keep cash and buy when the next crisis happens
      Sep 15
  • Google qpsi392n;$
    Google doesn't bench anyone you're fine. Just blend in amongst the other people enjoying 30hrs/week work life "balance".
    Sep 15 3
    • Google Krepton
      OP
      Not in Cloud 😬
      Sep 15
    • Google / Eng hooli.xyz
      You’ll be fine. I’ve managed more than a dozen Nooglers and it is very common to feel overwhelmed in your first year.
      Sep 15
    • Google Krepton
      OP
      Thank you, that’s encouraging :)
      Sep 15
  • Bloomberg / Eng F.U. money
    You will do fine at google.
    Sep 15 0
  • Microsoft / Eng aytas
    Assuming the house is priced fairly, the price of the house isn't the question. It's the amount of the loan. So…

    All depends on what your intentions are with that $500k in cash/investments. If you had earmarked that for a home purchase, you've got yourself a somewhat-reasonable $700k jumbo loan @ just over 3%. Go for it. Most are putting 20% down if they're lucky. You're putting almost 60% down. Your numbers are envious for 90% of your neighbors — even those in $1.2m homes. You're ultra conservative and that's great.

    Also: Don't try to time the market or listen to folks who will tell you to time the real estate market. If this house works for your family, buy it and enjoy it. You can afford it.
    Sep 16 1
    • Netflix madclown
      Questionable advice. Just because some people do crazier deals doesn’t mean that you should. You are not ultra conservative - moderate at best, wait for another year at least - it will make a big difference
      Sep 16
  • New / Design
    bellsprout

    New Design

    PRE
    Avvo, Nintendo
    bellsproutmore
    Seattle is in a bubble, don't do it.
    Sep 16 1
    • Intel XIUA15
      Buying for a family is different than speculating on real estate values.
      Sep 16
  • Intuitive Surgical HfMg53
    Get baby first see how it goes, then get property that fits your new lifestyle, its about to get real for you I believe.

    Note to derail topic, but how did you save $680k in 5years? I don’t think phd paid much?
    Sep 16 1
    • Google Krepton
      OP
      I think I live frugally in most people’s standards. I bought my car for $8k, rent a 2-bedroom for $2k in Seattle (including bills) and my monthly expenses are not that much (maybe $750?). I also had some special awards from Microsoft and always got top rewards.

      That being said, my current lifestyle has improved a lot since I was a student so I don’t feel like I am being frugal
      Sep 16
  • Amazon / Eng
    zaqwsxcde!

    Amazon Eng

    BIO
    Hmm
    zaqwsxcde!more
    You are in good shape to buy if you are considering to live there atleast 5 years.

    Are you a L4 or L5 at Google?
    Sep 15 1