So my fiancée and I have started house hunting in the Bay Area. We've accumulated a decent nest egg, but I'm wondering how much we should realistically budget, given that our RSUs will eventually taper off. We're in non-technical roles, so our refreshers are mediocre. I just happened to have gotten a few refreshers already + held most of it + my stock popped this year, so I feel like using current TC in mortgage calculations isn't quite accurate (i.e. max house price = 3x TC). We currently have $700K in liquidity (below) and are considering houses in the $1.3 - $1.5M price range, which is roughly $6.5K monthly. Excluding RSUs, our monthly take home is about $12K. Excellent credit scores and no debt, though planning to have kids in ~2 years. Given all of this, is it still reasonable to consider houses in our current price range? Or do we need to lower the budget if kids/childcare is on the horizon? Or am I just overworrying? Combined Base: $250K Cash: $150K Personal Stocks: $175K Vested RSUs: $375K My unvested RSUs: $450K through 2023 Her unvested RSUs: $50k over 4 years (new employee at Roblox, hoping the IPO goes well) #personalfinance #investments #housing
For me, I’d want to be able to comfortably handle the mortgage on base alone. If you take home 12k, I’d be targeting a mortgage of 1/3rd that, $4k or about $1m. So that suggests a slightly larger down payment for a home on the higher end of your range. Of course, if you’re more risk seeking go for a higher mortgage payment and invest in equities and hope the RSUs run good.
I have a similar base and I bought a 1.5M place a few years ago and don’t feel too strapped. I do dip into my savings sometimes for big purchases. I would say you will live comfortably and enjoy luxuries of life on occasion. I would aim for 350k by the time you have kids to feel comfortable in your place. I’d just stretch yourself now and get the 1.5M place and work on your careers in the next two years before having kids.
Don’t buy a house before you are married. If one of you died, the other one will own this house with his/her mother
Dave Ramsey is that you?😁
Hi, fan