How do I buy a 1.3M house without an emormous monthly payment?
I know the kind of house I want in SF is about 1.1-1.3m. Currently have ~ 500k in assets available to a downpayment, but still have long term cap gains to factor in. The only way I can see such a house being affordable month-to-month would be keeping my total monthly payment (p&i + taxes ) to sub $3800, which would require a downpayment of about 700k. What are some sane ways of getting there? I feel like it will take a decade when accounting for appreciation + potential recession slowing stock market gains. One idea i had was to do a smaller downpayment but take a shit ton of allowances from my paycheck knowing ill be able to deduct mortgage interest and property taxes to offset the tax burden, thus getting me more cash month to month making the monthly payment more doable. TC 250k
How do I buy more money with less money? Halp!
Download Robinhood, enable options, put $500k on AMD $35 calls expiring 11/1. Literally free money.
Scale back on the house. You could manage in a condo. Once you have enough equity sell and move up.
If the assets aren’t sold and the taxes due paid, they aren’t really assets. The banks know this. Save cash aggressively for a larger down payment and buy a house that you can actually afford. Your expectations are unrealistic, if you expect a low down payment and monthly payments in line with a one bedroom apartment rental.
Sorry if I miscommunication the down payment, as of now my plan was actually to save up a huge down payment of like 800k or so. But I wanted to get opinions as to whether or not this made sense.
I think so. SF has a lot of all cash offers that you would be competing against. Anyone claiming 20% down or less hasn’t actually bought in SF. You can always refinance later to pull cash out, if needed.
let me introduce you to my friend 2008
Why ? Whats special abt 2008. Explain pls
2008 was the year of the financial crisis. One of the causes was that there were many americans who couldnt afford to pay their mortgage because they bought a house that was too expensive
Don't put more than 20% down. Thats a waste of money. Why do you care about monthly payments?
What do you mean why to care about monthly payments?
That's what I am asking. Why does OP car about monthly payment size. Burning cash up front to lower monthly payment amount doesn't make any sense.
Wait until it goes on sale
Soon
It's not going to be like the last recession. That was caused by too many houses. This recession isn't related to houses. Also, there is still a shortages, not excess
That monthly payments seems a bit low to be considered the cut off at your TC no? It would seem you should be able to swing up to $1k more per month comfortably.
Yeah I’m mostly concerned about my month to month quality of life. Salary is 155, rest is stock and bonus which are quarterly and yearly, plus would not want to immediately sell my equity upon vest to pay for living expenses.
Nah I’ve done a lot of self reflection and I have been pretty set on living in SF long term. Also I think the kind of house I want is rarely on the rental market and would be like 5-6k monthly at least so why not own
YOE?