Due to luck (hit on stocks/crypto like TSLA, NVDA, DOGE..) my NW is around 2.75MM; yes, we went all out and it worked. TC is around 300K but base is only 180K though. I'm married too, but my wife doesn't work; no kids yet. She may work in the future but expected TC for her role is likely < 100K max. Let's just assume she isn't going to work. We live in a HCOL, so housing is shit even in the 1MM - 1.5MM range. Considering NW, we are thinking about 1.8MM budget for our house search at least. Can we even afford this? Most people say to only use base salary for mortgage but my base is shitty (relatively speaking). Also, I don't want to make more than 30% down payment; I'd rather use excess money for other investments / personal commitments. So 30% down with current interest rates is yielding in $9500 / month (P+I). Yup, that's already a significant portion of my base (pre-tax) but taking into account my NW, is this a good idea? Would banks even grant the loan? Please comment. What a world we are living in. Jeez.
Encourage you to keep going all in until you can just pay cash for 6M house. No point to stop in the middle class
don’t stop until 10M
Is this a joke?
30% down idea may sound like a joke I suppose considering my base but NW isn’t if that’s what you are wondering about.
The dilemma is what I think is the joke. If you really wanted a house, you’d sell enough of your NW to buy and live comfortably. If you’re not ready to part ways, then no house for you I guess.
Pay a higher down payment. Get the lowest tier conforming loan. Get monthly to approximate 6k range and you’ll sleep easier in your own home.
Get the lowest range for livable house you can buy , take this and thank me later !! You don’t need 1.8 m house , you are only two . So let’s say you have 1 kid in 5 years , smaller house makes sense . Next when ur income increases you can buy another by selling it renting this (or stay in this forever and invest )
Great NW! Especially for that income. May I ask your YoE?
8
I would honestly pay cash and live stress free.
Reduce my liquidity to just around 800K from 2.75MM!??
I'd get a small condo. Keep expenses low for a few years, build equity, ratchet up to a big condo or small house, repeat as necessary. Also look for remote jobs to allow moving to a lower COL area. That will enable you to save more and have a nicer bigger place.
We aspire to buy a SFH ASAP.
Why buy, sounds like whatever you're doing is working so keep at. Do some soul searching as to your motivation to buying, attach a value to it. Easier to start small and build your way up to whatever that number is... Then add that number to your rent.... Does it make sense yet to buy? Maybe you want nicer then what you rent..add the difference and keep building up your number.... You'll probably find that unless you place a high number on the emotional side, dollars wise buying not going to pencil out very well and you're still growing your money through investments...
If your monthly is $9500 that’s basically your entire cash comp. Too thin and treading on dangerous waters especially if you’re sacked. Why even bother buying a house? Wife should work and bring income
Like I said she may work but it's not going to be high TC due to her role. We are thinking about buying due to our NW which is pretty much 100% liquid. I'm open to selling RSUs regularly and keeping a large emergency fund.
I understand your justification and point but it’s a stretch at your cash comp only… and even though your RSUs are worth that much now have you ever thought in the case of a correction that might go downhill then your house will be repo’d and foreclosed on? I would continue renting until you can either bring your cash comp up and use your existing NW on side passive investments.