Does buying make sense? Need advice
My wife and I are thinking about buying a house for $1.7M great schools and location However, our household monthly income (after taxes and IRA) is about 20k and 900k savings. We’ll pay 750k for down payment, set aside 150k emergency fund. Then we are left with 9k house related costs (mortgage, taxes etc) + 4k regular costs (credit card) + 4k childcare costs = 17k monthly cost to 20k net monthly income. Do you think it makes sense to buy in this case? We are worried that we will be streched thin, and will be really exposed if one of us is laid off Need advice, afraid that once interest rates go down, we wont be able to afford a home #mortgage #housing #bayarea #sanfrancisco #investment
Do childcare costs go to zero when the kids start school? How far off is that?
Tc?
Combined 20k a month post taxes and ira + a lot of papet money
Even when it is at all time high? Also when interest rates decline, house prices will probably skyrocket
What type of returns do you expect from those two and what does your crypto portfolio look like? I only have about 10K in BTC/ETH but around 200K in non-retirement stocks. Thinking of rolling out a large portion of that into Bitcoin trying to “time” interest rates causing a sizeable correction
How are you thinking about Figma liquidity? Are you assuming no chance of a payday for the purposes of this decision?
I currently assume it is 0 to be conservative. The company is performing great and an IPO is on the horizon, but you never know
In general, Bay Area has been good in terms of property appreciation. I had similar situation 2 years back when we bought a home but now I feel settled and the property prices are up by 5% already.
But in two years stocks are up more than 100% and you probably built no equity in your house, you lost out on all the gains from downpayment and interest payments not being in stocks. It could've been even worse if you were laid off.
You should be fine. You can always rent a room or two incase one of you loses their job and are cash strapped.
Holy shit the Bay Area blows my brain
750K down payment and 9K mortgage?
9k monthly mortgage payment
9k = mortgage + property taxes + hoa + insurance