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Financial suicide or a good investment?
Posted on 4/2/17 at 5:29 pm
Posted on 4/2/17 at 5:29 pm
Buying a house at 750k. Income between 240-300k. 200-300 k down. House poor, or a good deal?
Posted on 4/2/17 at 5:35 pm to Ric Flair
With that combined income, how do you not know if that makes financial sense or not?
Posted on 4/2/17 at 5:40 pm to Ric Flair
That's fine assuming you're buying prime real estate not in the suburbs. It's best to buy as big a home as you can early and ride that growth throughout life as a home is the biggest investment for most people. Ideally you would buy at a better time as most markets are pretty pricey now but long term you should be more than fine assuming 4-5% growth in a prime property
Posted on 4/2/17 at 5:42 pm to Ric Flair
If you can put down $250k then how could you not afford it. You're talking about a $3000 monthly payment including insurance and taxes. You should be able to pay that, your bills, and save $2000-$3000 per month comfortably.
This post was edited on 4/3/17 at 9:34 am
Posted on 4/2/17 at 5:45 pm to Ric Flair
You should have more than enough to max 401ks and still have about 2 to 4k a month in after tax savings if you don't have kids/debt.
So if you're saving 60k or more a year with that mortgage you're fine.
And anyways, it isn't always the price you pay when it comes to real estate on deciding if it's a good idea. That goes from low to high end. It depends on lots of factors as bigfella kinda touched on.
So if you're saving 60k or more a year with that mortgage you're fine.
And anyways, it isn't always the price you pay when it comes to real estate on deciding if it's a good idea. That goes from low to high end. It depends on lots of factors as bigfella kinda touched on.
This post was edited on 4/2/17 at 5:46 pm
Posted on 4/2/17 at 5:48 pm to Ric Flair
You can easily afford that with a 240k-300k income
Posted on 4/2/17 at 6:04 pm to dabigfella
This would be a country club house within half a mile from an interstate loop around a major city. I'm hesitant to buy a cc house because I don't play golf. However, the location is good (2 Fortune 500 company HQ within a mile, with further development further away from the interstate loop).
Currently live within 1.5 miles from the loop, with a very comfortable mortgage/income ratio.
The new house would add some potential sq footage (finishing the 3rd floor) but otherwise it's a lateral move as far as current living situation square footage wise. Obviously a nicer neighborhood.
Currently live within 1.5 miles from the loop, with a very comfortable mortgage/income ratio.
The new house would add some potential sq footage (finishing the 3rd floor) but otherwise it's a lateral move as far as current living situation square footage wise. Obviously a nicer neighborhood.
Posted on 4/2/17 at 6:19 pm to Ric Flair
Maxing out 401k as well as deferred comp (36k total) and wife's ira. With match, probably putting away 50k/year in retirement, but didn't seriously start until age 38 or so.
I'm just comfortable in current house, and see no need to upgrade except for the "investment" aspect.
Just wondering about golf communities in the next 10-15 years I guess.
I'm just comfortable in current house, and see no need to upgrade except for the "investment" aspect.
Just wondering about golf communities in the next 10-15 years I guess.
Posted on 4/2/17 at 6:30 pm to Ric Flair
I don't believe your income levels. If they were true you would know what you could afford. You win a lottery or something?
Posted on 4/2/17 at 7:01 pm to broadhead
A 200k base with insurance (med/dental/vision), HSA max, 401k max, 457 max, etc. is less than you think monthly. Less than 10k or even 9k after taxes monthly. Bonuses of 60k are quickly reduced to 36k after the above deductions. Add in the extra taxes/HOA fees/CC membership with the better house and it's a legit discussion.
Posted on 4/2/17 at 7:14 pm to Ric Flair
I think it's too much house if your net worth is less than $1 million, excluding the house.
This post was edited on 4/2/17 at 7:15 pm
Posted on 4/2/17 at 9:20 pm to Ric Flair
quote:
A 200k base with insurance (med/dental/vision), HSA max, 401k max, 457 max, etc. is less than you think monthly. Less than 10k or even 9k after taxes monthly. Bonuses of 60k are quickly reduced to 36k after the above deductions. Add in the extra taxes/HOA fees/CC membership with the better house and it's a legit discussion.
That's a fact.
Posted on 4/2/17 at 10:07 pm to Ric Flair
quote:
Financial suicide or a good investment
Neither, how good or bad an idea, it is depends on many things, some far beyond your control.
Not enough info to judge.
Things like age, future plans, and certainty of maintaining income levels play a bigger part IMHO than particulars about the house.
Posted on 4/2/17 at 11:08 pm to Ric Flair
Why did you put that much money down since you have a good income?
What if that 200-300k could have earned good gains/interest for you?
That is my main takeaway.
What if that 200-300k could have earned good gains/interest for you?
That is my main takeaway.
Posted on 4/2/17 at 11:52 pm to Ric Flair
So let's say income of 250 and down of 250. So you are borrowing 2X earnings. That's not terrible.
How secure is your job, and how easy would it be to get a comparable job? What's your savings look like? E-Fund? Other debt?
I don't think it's financial suicide. But as far as an investment, depends on what you think values will do in the area.
How secure is your job, and how easy would it be to get a comparable job? What's your savings look like? E-Fund? Other debt?
I don't think it's financial suicide. But as far as an investment, depends on what you think values will do in the area.
Posted on 4/3/17 at 9:58 am to Ric Flair
Borrowing around 500k on a 270k income will not make you house poor. Unless you lose your job.
Whether it is a "good deal" or not would be impossible for us to know.
Whether it is a "good deal" or not would be impossible for us to know.
Posted on 4/3/17 at 10:55 am to Ric Flair
What are your priorities on being financially independent? How secure is that income? Realize that the price isn't the only thing high. Maintenance, taxes, insurance, and utilities are higher as well. If you are not already wealthy please realize that buying expensive things does not make you wealthy. Keeping expenses low and savings high is what builds wealth. Remember, middle class people purchase liabilities while upper class people purchase assets. There is a greater chance that an expensive house with mortgage will be a liability and not an income generating asset.
This post was edited on 4/3/17 at 11:19 am
Posted on 4/3/17 at 10:58 am to Tres7139
quote:
With that combined income, how do you not know if that makes financial sense or not?
You are being too hard on the guy. I've know directional drillers that made over $300k a year during the oil boom and lived paycheck to paycheck. I've know guys that make far less than that and learned to dabble in the options market and made a nice nest egg for their retirement.
Posted on 4/3/17 at 3:05 pm to Ric Flair
quote:
This would be a country club house within half a mile from an interstate loop around a major city. I'm hesitant to buy a cc house because I don't play golf. However, the location is good (2 Fortune 500 company HQ within a mile, with further development further away from the interstate loop).
Currently live within 1.5 miles from the loop, with a very comfortable mortgage/income ratio.
The new house would add some potential sq footage (finishing the 3rd floor) but otherwise it's a lateral move as far as current living situation square footage wise. Obviously a nicer neighborhood.
why are you moving?
Posted on 4/3/17 at 3:46 pm to Hawkeye95
quote:
why are you moving?
it seemed a good question based on his description. never really sounded like he was excited about it for any particular reason.
ill note id be nervous about it being a country club house due to the seeming to be plummeting rates of golfers (i havent studied close but catching articles here or there the last few years).
id also be slightly nervous with the corporate hq being a driver (without knowing what it is).
to the OP: you know more about both the businesses involved and the club but id take a hard look at both if those are helping drive the price today and think about if you are confident they will be driving the price the same way in the long term future.
This post was edited on 4/3/17 at 3:47 pm
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