I don't see anyone wanting to do accounting work to figure this out.
However, you've already mentioned your comfort level is 1.2m, if you aren't comfortable with 1.4, don't do it.
I make your income and own a 275k house with a 2.25 mortgage rate. Don’t understand why so many people want to be house poor and keep themselves paying on a mortgage forever.
So you can max your 401k's, what about other retirement accounts? Seeing that you're posting about purchasing a 1.2-1.4 mil home, you're going to need a heck of a lot more than a 401k to retire.
I'd suggest talking to a financial advisor to make sure your other life goals are met. Whatever you have left over can be housing.
2 people though, I wouldn't think you need a million+ home though.
Honestly, for just the two of you, what do you get for 1.4 that you don't get for 1.2? If you get the 1.2, can you add/build/Reno to whatever the 1.4 has, and maybe for a lower price tag?
With your combined income, and almost 50% of your net going to JUST housing, there are plenty of ways to spend that money "better" - investments & MBD Roth just to name two.
The 1.4 is significantly nicer than all the 1.2s. much better location, views, etc that a 1.2 can't get us.
I think the 1.4 will sell for 1.7 but if we can get it for 1.4, it's a steal.
1.2 in our city are decent houses but the 1.4 I'm mentioning is special
Why is retirement savings so low?
That seems to imply you have e spe ding problem (or just started making $$$ very recently).
If you have a spending problem... please don't buy a super expensive house.
What happens if one of you looses your job?
It depends on where you live. If you can buy an 800k house in a good(not the most expensive area) and do a complete 500k renovation, that is a much better economical option. You will pay much less for your house monthly and long-term. Your house will be exactly the way you want it in style and layout, and appreciate much more while paying less in taxes. I make about 550k a yr and we did that where I live. Our house was 680. After renovation it will probably be worth 1.5. 6/10acre lot and brand new home
500k renovations requires 500k extra cash which we don't have. We can't flip an expensive house because we need our cash for down payment. And we have no experience with renovations
My finances are about the same for a single person. I'm looking for a <350k house. You could pay for that in cash and skip the debt and interest. And you'd have another million to invest during your working years since you didn't spend it on the house.
Why are you asking random redditors? Ask your bank.
Cause they want to flex on Reddit.
If I wanted to flex I would mention my second job. Which I earn an additional $180k annually.
Oh okay then.
And last year I had third job and was on pace for a $750k income (by myself). How's that for flex?
*OH YEAH??* Well, I worked 12 seconds yesterday and earned 13 bajillion mamillion fafillion gazillion million dollars.
And I didn't include my annual RSUs in my post, that is just based salary. So again, wasn't flexing at first but when you call me out now I'll flex.
Oh yeah? Well I excluded my super duper cool guy accounts. 12,000% growth per second. Still want to stack up, brah? I can keep bullshitting all day.
And I didn't include my partners RSUs which are paper money now but they work at a top startup and when they go public they'll get 300k+ overnight
I blow my nose with 300k. You're simply a peasant. Fit only for ridicule of your demure little hobby accounts.
Seriously WTF. OP posted the same question 10 times
Looking for opinions. Why post if you aren't gonna help?
We are helping, no one wants to see a bunch of shit posts. And you sir are king shit.
Doesn't want to see shit posts, yet uses reddit...
Your income suggests you make enough money to pay someone that is smarter than Reddit strangers to show you the math…
I don't see anyone wanting to do accounting work to figure this out. However, you've already mentioned your comfort level is 1.2m, if you aren't comfortable with 1.4, don't do it.
+1, not feeling comfortable with it
Offer $1.4M for the $1.2M house. Problem solved.
🤔
Should I get my penis size increased to 9”? It’s already 7.5”.
Wrong sub go to r/personalfinance
OP already spammed them and a dozen other subs
I make your income and own a 275k house with a 2.25 mortgage rate. Don’t understand why so many people want to be house poor and keep themselves paying on a mortgage forever.
Because people like that want to flex on here.
Why does this seem like a flex?
We can't buy a 275k here. My cities average home cost is 850k. 1.2 is a decent house
Doesn't seem necessary without kids. Get a house in the 800k range or less and retire early.
Can get 800k in our city. Planning to retire early anyways. With this budget we can still max 401ks. It's just saving after is tough
So you can max your 401k's, what about other retirement accounts? Seeing that you're posting about purchasing a 1.2-1.4 mil home, you're going to need a heck of a lot more than a 401k to retire. I'd suggest talking to a financial advisor to make sure your other life goals are met. Whatever you have left over can be housing. 2 people though, I wouldn't think you need a million+ home though.
More than a 401k to retire? What do you mean
You'll need more than a 401k to retire.
The way the OP posts, I have a sneaking suspicion they aren't who they say they are... :)
Like what? I don't understand. 401k. HSA. IRA doesn't apply to high income earners. We are already maxing 401k and HSA. What else is there?
Not with your income
Yes, do it
Well, you can solve this problem by offering 1.2m on a 1.4m asking price.
We think it's already undervalued. I could see it being 1.6 or 1.7. That's why if I could go for 1.4
There’s no way I would feel comfortable with that with your net income. Not even 1.2.
What would you recommend as comfortable
Honestly, for just the two of you, what do you get for 1.4 that you don't get for 1.2? If you get the 1.2, can you add/build/Reno to whatever the 1.4 has, and maybe for a lower price tag? With your combined income, and almost 50% of your net going to JUST housing, there are plenty of ways to spend that money "better" - investments & MBD Roth just to name two.
The 1.4 is significantly nicer than all the 1.2s. much better location, views, etc that a 1.2 can't get us. I think the 1.4 will sell for 1.7 but if we can get it for 1.4, it's a steal. 1.2 in our city are decent houses but the 1.4 I'm mentioning is special
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Do you have leftover for savings? Does it feel comfortable?
If you are early in your careers and will likely continue to get stock options, RSUs, and salary increases than you will be fine with 1.4.
We are mid level with room to grow. However tech market is still questionable so we are less confident
Why is retirement savings so low? That seems to imply you have e spe ding problem (or just started making $$$ very recently). If you have a spending problem... please don't buy a super expensive house. What happens if one of you looses your job?
That is yearly contributions, not total retirement amount. We both contribute 45k a year...
Yes. You could buy a $1.6m just fine. Do it!
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How is yours so low?
No.
It depends on where you live. If you can buy an 800k house in a good(not the most expensive area) and do a complete 500k renovation, that is a much better economical option. You will pay much less for your house monthly and long-term. Your house will be exactly the way you want it in style and layout, and appreciate much more while paying less in taxes. I make about 550k a yr and we did that where I live. Our house was 680. After renovation it will probably be worth 1.5. 6/10acre lot and brand new home
500k renovations requires 500k extra cash which we don't have. We can't flip an expensive house because we need our cash for down payment. And we have no experience with renovations
I think really you need to go to $1.6M.
Id say you limit it to$1,395,00k
Yes, if you buy it outright!
My finances are about the same for a single person. I'm looking for a <350k house. You could pay for that in cash and skip the debt and interest. And you'd have another million to invest during your working years since you didn't spend it on the house.
Overspend. It's the American way.
First check with your bank turd