Looking for some free advise. We have been thinking to upgrade to a bigger house for a while. We have 2 elementary school age kids. We are wondering if these numbers make sense. Is this going to jeopardize our financial stability? The new homes that we are looking at are in $3.2M to 3.5M range. These are big houses (4k to 5k sqft range) on large lots. We currently own a home and have about $1M equity in it. Current mortgage is less than 3% and remaining balance is below $500k. The house size is OK but we want a bigger house until kids go to college. We have about $1M for down payment in addition to equity from the current home. Our investable assets: $3.2M including 401ks, taxable accounts, and down payment (money market) Current Home worth $1.6M with less than 500k mortgage remaining. After we buy 3.5M home, we will have 2.2M investable assets. Our HH TC: $800k (more this year due to stock rise) What do you think for upgrading to bigger and nicer home? #mortgage #housing
I’d move to a smaller house and retire tbh
This before you heart attack due to Amazon
This
Age and location? I'd do it.
You definitely can afford it if it’s something you really want. And presumably the new home’s value will be a massive asset. We moved to a larger home when kids were little and downsized after they both went to college.
Tbh I think you are over reaching on the home budget given your NW. answer these questions. 1) do you really need such a big home with just 4 primary folks living. 2) what are your long term goals. Do you plan on working till age 60+ or want to fire early. If you wanna retire early like me, then you need to rethink. 3) buying a 3.2M home is just the start. Do you have the cash to maintain it in terms of cleaners+ landscape + property taxes etc. you need to evaluate that. We are at around 8M NW without our primary residence and honestly wouldn’t sink 3.2M in RE as primary residence in general. Our W2 HHI is around 600k without stocks and my SOs business equity since mine is paper (Not at Expedia) and SOs is only realized upon cash out.
With the current job scenario I would stay put. With $3.5M house and 2M down you would roughly have ~12k monthly payment, thats a big monthly payment even with 800k TC … assuming you don’t want keep selling your RSUs for rest of your time in that house.
Do you really need 2m down? Seems like a waste.
Same situation.. Go for it.. I am actively looking for 3.5 M budget as well but in bay area .. Its just harder to close here with all the over bidding.. You only live once !
Yes
Did you live in this house for 15 years at least????
Wait for 6 months. Price and rate both will go down.
Doubtful. might be a year or longer for lower rates.
Lower rates are likely to drive higher prices