My wife(34) and I(35) found a dream home we could build on a lot with a pretty unbelievable view. It's an amazing home and we'd never want more. It would be new construction with Toll Brothers and land around $1.5M. We have 2 kids under 2 and might have 0-2 more.
Given that, we are likely 1.5yrs away from it being completed, but lots are selling quickly in the development so we may need to act quick.
Current Financial Scenario:
- Annual Income: $350k+ (Wife: $130k, Myself: $250k)
- Monthly Income (after maxing 2 work Roth 401ks, HSA): $15k-$20k+
- Monthly Living Expenses (excluding home costs): $4-5k
- Current 2018 Home Cost: $2k/month (including mortgage and insurance) we have a 2.99% rate
Current Assets:
- Cash Equivalents: $28k
- Taxable Investments: $400k
- Tax-Advantaged Investments: $413k
- Property Value: $720k (with a $336k mortgage balance)
- Company ISO stock: maybe nothing, maybe $500k+ :fingers crossed:
- Two new 2023 cars payed off
Debt: No debt other than the mortgage
Options Being Considered:
Don't Do Anything:
- Continue with the current financial and living situation. Save a ton and invest.
Buy a New Dream Home:
- Cost of New Home: $9k/month (includes taxes/fees
- Keep first home and rent for $3k/month (hire a property manager for 10%)
Additional Context:
- Both homes are in growing markets with appreciation potential.
Questions:
Feels like keeping our 1st home gives a secure safety net to potentially fall back on in a worst case scenario, and keeping it could fuel a large retirement opportunity.
That said, we are scared of taking on debt, given how considerate we've always been.
Would love any and all advice. Thanks!
Submitted July 15, 2024 at 02:17AM by Standard-Resort-6004 https://ift.tt/p9WrIED
