Buying a 2.5mil home in south bay

Nov 10, 2019 77 Comments

I'm looking at Saratoga/Cupertino right now, any thoughts/comments/suggestions? This will be my first home purchase.

Have two young kids, wife and I are early 30s. Single income, wife is SAHM.

Worried about market top but don't really spend money on anything either.

Thanks in advance!

EDIT* 500K TC, 500k down payment. Have around 150k in savings accounts, no other assets other than the down payment.

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TOP 77 Comments
  • Oracle lkR77
    You can’t afford that home.
    Nov 10, 2019 8
    • Google nyutask
      in NYC that's basically a 6k a month mortgage, which is a huge expense to take on after dropping most of my liquid cash (outside of 401k) on the down payment.
      Nov 10, 2019
    • Oracle lkR77
      Are you planning to stay at Netflix for thirty years?
      Nov 10, 2019
  • Cadence Mariposa
    You are so much ahead In life for an early 30's person. Good for you :)
    Nov 10, 2019 5
    • Cadence Mariposa
      The money part is not what I am talking about.
      Nov 10, 2019
    • Netflix Polis
      OP
      Ah, sorry mate
      Nov 10, 2019
  • This comment was deleted by original commenter.

    • Netflix Polis
      OP
      Most people definitely seem against the idea, thanks for your input.
      Nov 10, 2019
    • Facebook public2
      Leveraging millions at historically low rates to buy an appreciating assest is actually a very easy to gaurantee you do "get rich" :)
      Nov 10, 2019
  • Netflix the.oa
    Are you worried you can’t afford it or that the market will crash?

    If you’re worried about a crash, wait a bit longer. Prices are adjusting downward since those areas jacked up to the moon the past 5 years. Just hope interest rates don’t turn on you.

    Edit: my worry would be being fired and not being able to find another 500k TC job to cover this house. If you have good seniority and are in a solid team, then the risk is less.
    Nov 10, 2019 4
    • HPE baebo
      I wouldn’t be comfortable spending that much, especially without substantial savings. The market is wobbly and probably not the best time to buy, even if you could afford it/
      Nov 10, 2019
    • Netflix the.oa
      Having 500k cash plus an extra 130k in savings is huge. I think it’s good to cool your heels and wait things out. Just be be on the safer end. 5 years ago it was a no brainer to beg borrow and steal to get anything you could in LG and Saragota. Now is a good time to chill. The shit is frothy AF.

      Honestly, the only other company that will give you 500k is probably FB and it’s not all cash. Be mindful of this risk and good luck dude.
      Nov 10, 2019
  • Netflix
    MindHunted

    Netflix

    PRE
    Google, Amazon
    MindHuntedmore
    OP,
    I wouldn't bet on keeping a job at Netflix for a very long time. Unless, you've become an expert in dealing with politics. The market is all time high with a great chance of correcting within 2 years. When that happens, TC of other top tech firms will go down because of RSUs. It would also mean that your TC will go down as well. Netflix hasn't been through a recession since we started streaming and gotten lofty valuation. In my opinion, it will correct a lot.

    If you're on Visa, I'd strongly advice to not do it :)
    Nov 10, 2019 0
  • Uber listen!
    I was in a similar situation as yours OP, with exactly the same amount of saving. Early this year, I bought a 4 BR townhome in Mt. View for a little over 1.6M. Based on my mortgage approvals, I had much higher capacity so I felt at that point that I am buying under-capacity. Like you, I also do not invest anywhere else and thus wanted to put most of my money in real estate.
    I can tell you that I find my mortgage payments pretty expensive at the moment and hoping to get a good RSU vest to recast my loan and reduce my EMI. 2.5mil would be crazy at your comp. PM me if you need more details.
    Nov 11, 2019 2
    • Instasize cplus
      Dude all of your risk is concentrated in US technology. You’re a fool

      It’s not your fault there’s a whole herd of people that I’ve bid up these properties to these prices but just know it absolutely represents risk
      Nov 11, 2019
    • Uber listen!
      @cplus thanks for calling me a fool. I am sure you are really super talented to come to that conclusion based on the little data I shared with you without knowing my complete situation and inputs which went into decision making. You should remember most people who can afford to buy expensive properties through their personally earned money can also research the safety aspects of their investment and take a calculated risk. I believe I did that for myself
      Nov 11, 2019
  • Oracle dragonflyy
    Do you have savings outside the downpayment? Should protect yourself for a loss of a job - understand that likelihood of that is low and you will find another job soon but with a $2M mortgage, you’ll drain funds quickly.
    Nov 10, 2019 1
    • Netflix Polis
      OP
      Not really, would be putting it all into the house. That's a good point, ill add that to the origin post as well.
      Nov 10, 2019
  • Amazon
    de5i

    Amazon

    BIO
    Just taking it easy
    de5imore
    Might be a bit tight, but you can afford it.
    Nov 10, 2019 1
    • Facebook / Other
      lovethez

      Facebook Other

      PRE
      Facebook
      lovethezmore
      I wouldn't spend more than 30% of my net worth on real estate.
      Nov 10, 2019
  • Facebook mifscgug
    My savings are 4x of what you’ve mentioned in your post and I bought a 1M home. Don’t buy a home just because the bank will give you a loan. Remember you need to pay off that 2M after the down payment. Don’t plan to be in a mortgage for 30 years, try to pay it off much sooner. Life is unpredictable and you might be hit by recession or layoffs at a company and that mortgage will be a huge burden at that time.
    Nov 10, 2019 0
  • Union Bank Dhdjndkf
    Wow this is brave
    Yesterday 8
    • Yahoo JabS27
      What Oracle asked. How can it be 680k with single income?
      Yesterday
    • Union Bank Dhdjndkf
      Household TC ..
      Yesterday

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