Net worth including home equity: $2.7M Net worth excluding home equity: $2M Net worth excluding home equity and retirement accounts: $1.5M Household annual TC: $700K+ We currently have 3K sqft house that is worth $1.5M and have $500K remaining mortgage. Our monthly mortgage and property taxes are about $3K. We have been looking for a large house. In good areas (Bellevue, Sammamish, Issaquah Highlands, etc.) with good public schools, they are in $2.7M to $3.5M range. We are looking at $3M for planning purpose. Our monthly mortgage and property taxes will be around $13K. This is $9K above our current one. Total will be about 40% of our post tax TC. We can make it work but not sure if this will a good financial decision, I know that house is not an investment but we would still like to sell for above than what we will buy for. We plan to stay for next 10-15 years in this house till our kids go to college. Will you recommend to buy such expensive house? Please leave your comments. #mortgage #housing
You already have 3k sqft house, and you want even larger?
OP, how many SQ FT are you looking for?
5K sqft
Surprised you have kids given that you sound like a bussy connoisseur.
Lol what??
TERRIBLE financial decision.
If the vision you have for your future involves a larger house, then you should go for it. YOLO.
You’re actually pretty close to my profile, asset and tc wise. I do have monthly net rental cash flow of 4-5k on top of what you have. And higher net worth and tc. And i did recently what you exactly asking here. I bought a 2m house. I voted no. Cause I think you’re going to be severely house poor. House of type that you live in now and the one you’re looking at, are of entirely different class. I know. I jumped from typical 3000sqft house in a typical sfh neighborhood to a posh area 5k house. Let me tell you, it’s just not just mortgage and taxes.
Can you say more on why it’s not just mortgage and taxes?
Added expenses. House care, maid services, lawn garden care, extra utilities bill. The sprinkler water bill and permanent gardener will set you up for at least 300 a month. Your overall lifestyle has to be upgraded with that kind of house. Otherwise it doesn’t make sense. You bought a Porsche but get sad because now you have to buy premium gas. If you do, you can’t actually afford it.
2.7 - 2.0 = 0.7. Then says $1.5m house with 0.5 to go, or 1.0 equity. OP is sus.
You are not including agents commission and sales tax and income tax over 500K profit. When you consider all of them, you will have about $700 real equity. Do some math. What matters is what we will get when we sell our current house.
“Do some math”? On what basis? I don’t see that you listed purchase price, how’s he supposed to figure out your capital gains?
Here in Palo Alto people buy tiny Eichler houses that are pain to maintain for that price with that TC and NW.
Your house is where you live and will raise your family for the next 10-15 years. Get something you love. Yes it’s a lot of money but also so valuable in the non-$$$ related things you’ll get out of it.
At that price you should be buying in Clyde Hill. Appreciation will be better there, giving you better long term prospects
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@op - which areas or zip codes you are looking at ? Does your network include retirement account assets as well ?
Bellevue, Sammamish, Issaquah Yes, our net worth includes retirement funds that are about $500K.