re: In the market for a house...

quote:

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Betting on wage growth is a risk I would not take.

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To each their own.

I'm not advocating buying a house you can't afford at your current salary. I'm suggesting stretching your house note as much as you are comfortable with stretching it and maintain the minimum lifestyle that you want to live. I am merely suggesting that wage growth will account for expenses that you don't have today such as day care, new vehicles, private school tuition, college savings, etc.

This is the advice a mentor gave me 15 years ago when I bought my house and I'm glad I followed it. If I followed the advice of most of the people on this board, then I likely would not be able to afford to upgrade to the same house today. Instead I will own the house outright in a few years.

Most of the advice on this board reminds me of the sound advice my father gave me in 1995 when I told him I was planning to buy stock with some money I had saved. "The market is higher than its ever been (Dow was around 3500) only a fool gets into the market when its high!" Good thing I listened to him because I'm ready to invest once the Dow dips below 3500 any day now!