Looking at buying a house for 975k. I can put down 20%. Based on my estimations this puts us at $6200 a month for housing (PITI and utilities) at a 7% rate.
I’m in my early 30s and make 170k a year. This is likely to go up to 185 next year, maybe more long term, but don’t want to count too heavily on that. Employer pays for majority of health and dental.
Wife is stay at home mom for the next 5 years. Might make some side hustle cash but nothing consistent. After little ones are in school she will likely bring in 100k (what she would make in her field today if she worked full time).
We live in a moderately HCOL town. Our current rent is $2500 and we feel lucky with that. It’s small and getting difficult with one kid and another on the way.
No debts. One car paid off. Will still have 100k in retirement savings after down payment and an emergency fund of $15k. Edit: actually 30k
The house also has an ADU which we can rent for $1500 per month. Will need to invest a bit in the adu to get it rentable though maybe 3k. This would bring housing cost down to $4700
We definitely won’t be saving as much in the next few years if we go through with it but I see a few paths where this might become more affordable. Not saying any of these possibilities are guaranteed but I would argue more likely than not: 1: getting a promotion 2: refinancing when rates go down 3: wife working again
Someone please talk me out of this or talk me into this! My eyes are getting fuzzy looking at my spreadsheet lol.
Edit: we would have 30k in non retirement savings after closing costs.
Edit 2: we don’t need to buy any furniture or appliances or stuff. Just one dryer for the adu.
Submitted August 13, 2023 at 10:27PM by StraightLoquat https://ift.tt/Hps6y2v
