Would you buy this house if you were in my shoes?
Married and expecting a baby soon, single income ~$320k TC. I have around $500k in cash/investments and another $180k in 401k. I save ~$180k/year. I am new to Google and don’t feel that my job is stable (work is challenging). House price is $1.2M. Would you buy it or wait to save more and get more confidence in my job stability? My personal thoughts were that even if I don’t do well at Google then I will save another $100k by the time I am out. So I can theoretically coast without a job for ~5 years.
Do it
Create a poll
Done
Don’t use poll results to make decision
Do it. Interest rates are at historic lows. You will always get your money back if you hold onto the house for over 5 years.
Incorrect
If interest rates rise, housing list prices go down as people borrowing to buy homes cannot afford a high price (because they have to pay more in interest). This is good for cash buyers but bad for people who overpaid when interest rates were low.
1.2M house is either too small/not in a good neighborhood/long commute. I would look at something better.
Seattle.
I see. If the house is good enough for the next 10 years then go for it.
You can go either way. If it were me I'd probably do it.
How old are you? That will factor in your earning potential and other intangible factors.
35
Sounds like you have a lot of boxes checked. According to my friend at CBRE (commercial real estate) structured products, you should buy a house in to live when YOU are ready, don't try to time the market. Hope that helps some.
YOE?
Yoe?
5
You started working when you were 30? How come?
The fact you save 180k/year tells me you have had high expectations roles in the past so I’m not worried about being new to google. I assume you don’t have other debt. Your Savings and TC support a 1.2M home. Go for it man! Honestly the bigger consideration is how long you’ll be there and that you love the area. <5 years would mean you might consider renting instead. There is no perfect algorithm on this one. I say 5 years and then homes skyrocket in next 2.
Thanks. I am just always very cautious and I don’t want to end up in a bad financial mess. The $1.2M is huge and I don’t know if I’ll keep pulling that much for long.
It is huge and you already know the answer - be causious
Wait a little..save a bit more....kids are expensive and get settled in your job & if you want jump ship you won't be as stressed out