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Started By
Message
$300,000 home cash, or 50% down $600,000 home in a nicer neighborhood
Posted on 12/7/16 at 12:19 pm
Posted on 12/7/16 at 12:19 pm
Hypothetical: $300,000 home cash (no mortgage) in a middle class neighborhood, or 50% down $600,000 home in a nicer, more upper middle class neighborhood
What say you? Yes, no, not enough info?
What say you? Yes, no, not enough info?
18
Posted on 12/7/16 at 12:20 pm to crazycubes
quote:
not enough info?
But, Not paying a mortgage is really great
Posted on 12/7/16 at 12:23 pm to crazycubes
My wife and I own our townhouse (appraised for $270,000 about 2 months ago), and it's damn nice not having a mortgage. She wants to upgrade (we have an 8 year old and one due at the end of this month). I can see us upgrading in the next year or two, but it's awesome not having a mortgage 
Posted on 12/7/16 at 12:24 pm to CoachChappy
It would depend on my age, job situation, kids, etc. I would likely split the difference and look for something in the 450k range if I wanted something a little better.
Posted on 12/7/16 at 12:33 pm to crazycubes
quote:
ypothetical: $300,000 home cash (no mortgage) in a middle class neighborhood, or 50% down $600,000 home in a nicer, more upper middle class neighborhood
What say you? Yes, no, not enough info?
I mean, it really comes down to if you want to live in the $600,000 house or not.
But I wouldn't put 50% down anyways at these rates. That gives you $480,000. At 5%, that is going to earn income of $24,000 a year. Your mortgage note, insurance, etc will be approx $3,000 - $3,500 a month or $36,000 a year. So, if you average 5% you are paying $1,000 a month to live in a 2/3 million dollar house with better lifestyle?
Sign me up. However, I'm not afraid of leveraging cheap money while we have the option. (All other things held equal (real estate market, etc).
If you really like the 300k, even better from a pure monetary standpoint.
This post was edited on 12/7/16 at 12:37 pm
Posted on 12/7/16 at 12:34 pm to LSU1018
my situation as of right now.
i am currently looking around but only want to leave in either 70808, 70810
i am currently looking around but only want to leave in either 70808, 70810
Posted on 12/7/16 at 12:39 pm to crazycubes
do you have the taxable income to get approved for that extra $300k? Its not as easy as many think to get loans these days. It's always better to leverage up and make money in real estate while you're young and making money. When you retire, downsize and pay cash.
Posted on 12/7/16 at 12:50 pm to dabigfella
I have zero taxable income and just bought a house for $144,000, 0 Down, and a rate of 2.375.
Posted on 12/7/16 at 12:56 pm to crazycubes
In making the decision don't forget to factor in the increase in property taxes and insurance for the $600K house. Also, assuming it may be a larger house, the utility bill will be higher. If the house is new maintenance cost on a larger house probably will not matter, but in the long term a larger house will cost more to repair and maintain, the roof is bigger, multiple HVAC systems, water heaters etc.
Posted on 12/7/16 at 1:00 pm to EA6B
Yep and I'm sure things for a $300k & 600K house are ridiculous to furnish it. Best of luck though!
Posted on 12/7/16 at 1:09 pm to momentoftruth87
How did you get that financing if you don't mind me asking? I'm sure there are programs for first time buyers but a $600k home isn't that easy to finance. They're gonna look at assets,debts,etc
Posted on 12/7/16 at 1:21 pm to dabigfella
Where are you buying? Property tax is another factor.
If you have a family plan to have kids I would go $600,000.
Also consult with a realtor on what would be best in terms of mainting value or appreciating.
I'm so weird that my neighbors are a factor too.
If you have a family plan to have kids I would go $600,000.
Also consult with a realtor on what would be best in terms of mainting value or appreciating.
I'm so weird that my neighbors are a factor too.
Posted on 12/7/16 at 1:35 pm to crazycubes
Lots of factors in play. Need more info. Where I live on the Williamson County/Davidson county line, schools/taxes are the biggest factor in determine value. Davidson, you're pay 2x property taxes and going private, Williamson taxes are 1/2 and public k-12 will rival any private school education you would get. With that said, you'll pay 30% more for same house in Williamson.
Either way I'd put down 25% at most and take advantage of historically cheap money and tax benefits
Either way I'd put down 25% at most and take advantage of historically cheap money and tax benefits
Posted on 12/7/16 at 1:38 pm to crazycubes
I'm actually in the same position. Going from 300K home to +700k.
I'm putting 500k down cash (includes paid lot owned the past 6 months). Decided to make the move b/c we wanted to build and I plan to be in the new house and neighborhood until I rot.
I'm putting 500k down cash (includes paid lot owned the past 6 months). Decided to make the move b/c we wanted to build and I plan to be in the new house and neighborhood until I rot.
Posted on 12/7/16 at 1:52 pm to dabigfella
I make about $5100/mo non taxed. I'm a disabled veteran and Illinois pays for my entire tuition so I bank full GI BILL. Roughly $3400 for disability and $1860 for GI BILL. (Before someone comes running their mouth, no I'm not 100% for BS Claims)
Anyways I have my 2015 Silverado paid off, Wifes Explorer has a note and 1 credit card with under 5K. So literally I have good cash flow.
I don't pay property tax since I'm exempt and my credit is great. I saved a lot of money when I was in the military.
US BANK is my lender (VA Loan) they were great. They gave me the free buy down to 2.375 from 3.375 for opening accounts.
Anyways I have my 2015 Silverado paid off, Wifes Explorer has a note and 1 credit card with under 5K. So literally I have good cash flow.
I don't pay property tax since I'm exempt and my credit is great. I saved a lot of money when I was in the military.
US BANK is my lender (VA Loan) they were great. They gave me the free buy down to 2.375 from 3.375 for opening accounts.
Posted on 12/7/16 at 2:18 pm to crazycubes
This comes up on here once a week. We all retreat to the camp we come from, but once again this makes no sense to me. Who would pay $300k in cash for a house? If you have 5x that in cash laying around it might make sense. Why put 50% down on a house? Rates are still very cheap. Call me crazy but I have multiple mortgages. In the present rate climate borrowing makes sense. Cash is put to use to do stuff other than insulate a home.
Personally it wasn't till I hit $1 mil in debt that I felt like things were going well. I don't get the extreme debt averse crowd. Even companies like Apple borrow money for certain reasons. Having all your cash tied up in a home when your at an age where your still working doesn't make sense to me.
I get that people feel differently I just don't inderstand it.
Personally it wasn't till I hit $1 mil in debt that I felt like things were going well. I don't get the extreme debt averse crowd. Even companies like Apple borrow money for certain reasons. Having all your cash tied up in a home when your at an age where your still working doesn't make sense to me.
I get that people feel differently I just don't inderstand it.
Posted on 12/7/16 at 2:50 pm to Jp1LSU
quote:
This comes up on here once a week. We all retreat to the camp we come from, but once again this makes no sense to me. Who would pay $300k in cash for a house? If you have 5x that in cash laying around it might make sense. Why put 50% down on a house? Rates are still very cheap. Call me crazy but I have multiple mortgages. In the present rate climate borrowing makes sense. Cash is put to use to do stuff other than insulate a home. Personally it wasn't till I hit $1 mil in debt that I felt like things were going well. I don't get the extreme debt averse crowd. Even companies like Apple borrow money for certain reasons. Having all your cash tied up in a home when your at an age where your still working doesn't make sense to me. I get that people feel differently I just don't inderstand it.
Couldn't agree more, at least when it comes to real estate.
Posted on 12/7/16 at 3:01 pm to SippyCup
I'm in this boat right now...
Through the combination of building smart and a good market, we have around 70-80K equity in our house (15K is cash down payment) and just knowing that its there not really doing anything is bothering me to no end. We like the house and didn't really intend on moving, but there are so many things I know that I'd like to do with that money...like get serious about investment property....
Through the combination of building smart and a good market, we have around 70-80K equity in our house (15K is cash down payment) and just knowing that its there not really doing anything is bothering me to no end. We like the house and didn't really intend on moving, but there are so many things I know that I'd like to do with that money...like get serious about investment property....
Posted on 12/7/16 at 3:11 pm to crazycubes
Damnit, reading threads like this make me realize I have no idea what goes into buying a house. Which sucks because I want to buy one within a year or two.
What's a good place to start reading and learning about this shite. Is there a "buying a house for dummies" book
What's a good place to start reading and learning about this shite. Is there a "buying a house for dummies" book
Posted on 12/7/16 at 3:25 pm to crazycubes
Personally, I'd do the 300k and not have a mortgage. I can't wait to pay mine off. I know it makes more sense to pay out the full term, but I don't like having the note.
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