Financial suicide or a good investment?

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

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.

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.

I don't believe your income levels. If they were true you would know what you could afford. You win a lottery or something?

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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.

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That's a fact.

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.

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.

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With that combined income, how do you not know if that makes financial sense or not?

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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.

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why are you moving?

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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.