Am I crazy to buy a 2m house

Google
Lggb07

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Lggb07
May 2, 2021 49 Comments

My spouse and I are both 28 yrs old, we don't have any kids right now. 2 million seems crazy for our first home, but as per several mortgage calculators it seems to be "comfortable" (~24% debt to income ratio). How much should we really spend on the house (in bay area)?

Combined TC: 650K
Assets (outside 401k): 1.2 million

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TOP 49 Comments
  • Intel
    fearmongr

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    fearmongr
    Food for thought. What if one of you lose job and donโ€™t get it for 6 months. High risk but you like the home go for it. First home should be always special. Btw property tax will be 25k per annum.
    May 2, 2021 11
    • Google
      Lggb07

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      Lggb07
      OP
      @wooshie, it will mostly be just the two of us living in the home, apart from parents visiting few weeks a year.
      You're recommending not buying condo/townhouse which I also agree with, but then can we really get a SFH for <2m?
      May 3, 2021
    • Intel
      fearmongr

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      fearmongr
      @OP I encourage you to buy home. Since you are asking a question in blind, I can answer only from my optics. $2M home for a couple is too risky. 400k down + 30k/ annum money will be stuck with one asset. If you think you can manage than go for it.
      May 3, 2021
  • Calix
    eOWg46

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    eOWg46
    Buy it man, you got one life ! Yolo !!
    May 2, 2021 0
  • NVIDIA
    sdm10

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    sdm10
    Without a doubt do it . Also if that 1.2 million is in single stock, considering diversifying a little bit.
    May 2, 2021 8
    • Twilio
      grucial

      Go to company page Twilio

      grucial
      You diversify when you are 40 and want to retire forever. It is dumb to assume everyone should have the same investment strategy and diversify.
      May 3, 2021
    • ARM
      Arch101

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      Arch101
      All the expert traders & invedtors who think gains in last 2-5 years are representative of the whole time space of ivnesting :D
      May 3, 2021
  • Samsung
    Hyper ๐Ÿ”

    Go to company page Samsung

    Hyper ๐Ÿ”
    As long you can service the mortgage, a home appreciates in the long term. Donโ€™t put more than 20% down to get a 5x leverage. SFH > TH > Condo.
    May 2, 2021 0
  • Amazon
    jfbzs

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    jfbzs
    Good for you but honestly I donโ€™t think youโ€™ll find the perfect person to answer your question on blind. Youโ€™ll just get a bunch of noise that will pollute your decision making.
    May 2, 2021 2