Bay Area, Redfin estimates 2.6m, TC 700k (300+ base), 1m cash + stocks available, 2m non vested Mortgage can be supported with periodic stock sales. Already have 3k mortgage. Update: thank you all! I decided to pass on it. Stay with my current house for 3-4 years until my 3 kids grow up so I will need more space for them. #housing #mortgage
Sounds dumb. Think net worth. You’re spending a huge percentage of your networth.
Spending - you make it sound like hes buying some consumer durable or a car
In 15 years, that 3.3M will be 9M dollars. Bay Area is not going anywhere.
Yes
Why is it priced 700k over the estimate? This isn’t 2021 when people would pay any price
Greed. It will sell for less for sure.
then let it simple solutions for simple people problems
The bubble will pop, and you may be left 1 mil in the hole. This is not the time
General rule of thumb (max value of house = 4xtc) says no.
4x TC is so crazy high for a home even. I wouldn’t do 2x tbh
I don’t think anybody could afford a decent school district home at 2x unless you are a director or higher level employee
With mortgage this high and NVDA getting higher in the past few months it’s doable but my reasons as a homeowner- Property tax is unaccounted for when in the market. Considering Bay Area you see 1.4% of your house sale price every year. Ofcourse you can get tax deductions (if rented) but still an expense. Current labor market is tight - in the sense house upgrades are too costly due to labor prices and costly material except timber which has gotten cheap. The house has to be the average to medium in the bracket of sale price else unless most neighboring houses don’t go the price you’re paying yours won’t appreciate quickly. Check your timeline - do you see yourself staying there for more than 7-10 years? If so none of the above matters.
You can't get tax deductions for property tax anymore, not if you make 700k+ at least.
I didn’t mention but you can if rented. I’m assuming here. Thanks for clarification.
Do not base monthly payment on selling stock that’s crazy risky
OP, what kind of role do you have at Nvidia?
Ic6
Why not? You have $1m in cash
Downpayment alone would be close to $700K Having $1M cash is irrelevant
You can always get collateral loans on your investments. So 20 percent on that 80 percent on remaining. 1M invested elsewhere and get juicy returns to pay for both. Ofcourse this needs a lot of strategy.
I wouldn’t buy it even if they gave it to me at 500k. The Bay Area sucks ass
Where do you like to live?
One of the greatest cities in the world - NYC