we bought a house - are we housepoor now?

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panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 2:32 pm

Assets have changed slightly from my last post. Some illiquid assets recently became liquid so I am now counting them. Those assets played a role in the decision to purchase the house.

married couple early to mid 30s.

income:
salary1:150
bonus1: 22
rsu1: 30

salary2:60

total: 262k

house location:
metro west suburb with good schools ~ 15 miles west of downtown boston.

price: ~ 900k
down payment: 30% (270k)

asset breakdown after home purchase:

Regular:

550k mix of stock/bond

Tax Advantaged:
200k mix of stock bond

Home Equity:
270k

0 debt, 2 late model Hondas owned outright.

Total: 1.02m

User avatar
randomizer
Posts: 632
Joined: Sun Jul 06, 2014 3:46 pm

Re: we bought a house - are we housepoor now?

Post by randomizer » Sun Oct 29, 2017 2:40 pm

Doesn't seem house poor to me, although you could probably have bought much less house.

Ignis
Posts: 87
Joined: Wed Jul 04, 2012 5:29 pm

Re: we bought a house - are we housepoor now?

Post by Ignis » Sun Oct 29, 2017 2:55 pm

Your mortgage is right at 2.4x your salary (including bonus and RSUs) and your liquid assets are greater than your outstanding mortgage so I wouldn’t say you are house poor.. But that’s just my opinion (in a fairly similar situation on a slightly smaller scale).

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Watty
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Re: we bought a house - are we housepoor now?

Post by Watty » Sun Oct 29, 2017 3:03 pm

You have over half a million in a taxable account and your house payments are likely a very reasonable percentage of your income. You are in more of a humblebrag situation than house poor.

The only red flag I see is that relative to your income your net worth is not very high for having likely worked more than ten years. Unless something has happened like you have paid off a lot of debt or your income has recently gone up then it would be good to take a look at your level of spending.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 3:08 pm

OP,

Your house price = 900K.

Your none house related asset = 750K

A) Your house's value is bigger than your none house related asset. You are "House Poor".

B) How much can you save every year after buying this house?

C) Will your income, bonus, and RSU continue for a few more years?

KlangFool

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 3:38 pm

KlangFool wrote:
Sun Oct 29, 2017 3:08 pm
OP,

Your house price = 900K.

Your none house related asset = 750K

A) Your house's value is bigger than your none house related asset. You are "House Poor".

B) How much can you save every year after buying this house?

C) Will your income, bonus, and RSU continue for a few more years?

KlangFool
Will probably be able to save another 30-40k year 1 owning this house. That is not including the principal payments which will total nearly 11k for the year. So in total i'd say 40-50k savings including principal against mortgage.

I expect income, bonus, and RSU to continue for quite some time.

rebellovw
Posts: 241
Joined: Tue Aug 16, 2016 4:30 pm

Re: we bought a house - are we housepoor now?

Post by rebellovw » Sun Oct 29, 2017 3:41 pm

If you were in CA - the property taxes on a 900K house would be crazy- and you would likely be house poor.

John Laurens
Posts: 253
Joined: Mon Nov 14, 2016 7:31 pm

Re: we bought a house - are we housepoor now?

Post by John Laurens » Sun Oct 29, 2017 3:41 pm

If you either have kids or are planning on kids, you are definitely house poor.

Regards,
John

student
Posts: 1333
Joined: Fri Apr 03, 2015 6:58 am

Re: we bought a house - are we housepoor now?

Post by student » Sun Oct 29, 2017 3:42 pm

I think number wise, you are fine.

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 3:46 pm

John Laurens wrote:
Sun Oct 29, 2017 3:41 pm
If you either have kids or are planning on kids, you are definitely house poor.

Regards,
John
Could you explain how having 1 child would suddenly make us house poor given we are projecting 40+K of incremental savings in the next year after buying this house?

John Laurens
Posts: 253
Joined: Mon Nov 14, 2016 7:31 pm

Re: we bought a house - are we housepoor now?

Post by John Laurens » Sun Oct 29, 2017 3:53 pm

Having children increases the odds of necessitating going to one income in which case you would be house poor.

Regards,
John

HornedToad
Posts: 674
Joined: Wed May 21, 2008 12:36 am

Re: we bought a house - are we housepoor now?

Post by HornedToad » Sun Oct 29, 2017 4:09 pm

panchilly wrote:
Sun Oct 29, 2017 3:46 pm
John Laurens wrote:
Sun Oct 29, 2017 3:41 pm
If you either have kids or are planning on kids, you are definitely house poor.

Regards,
John
Could you explain how having 1 child would suddenly make us house poor given we are projecting 40+K of incremental savings in the next year after buying this house?
Your savings would drop to ~15k/year with 1 kid due to Daycare/etc. With two kids you'd have to limit retirement savings or cut other expenses. Depend on how much income will also grow overtime. I wouldn't necessarily say housepoor, but budget will become much tighter and actually have to look at it with the house + kids.

TheHouse7
Posts: 204
Joined: Fri Jan 13, 2017 2:40 am

Re: we bought a house - are we housepoor now?

Post by TheHouse7 » Sun Oct 29, 2017 4:18 pm

Watty wrote:
Sun Oct 29, 2017 3:03 pm
You have over half a million in a taxable account and your house payments are likely a very reasonable percentage of your income. You are in more of a humblebrag situation than house poor.
+1 Your house is awesome and make more than 5x median income.
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 4:20 pm

John Laurens wrote:
Sun Oct 29, 2017 3:53 pm
Having children increases the odds of necessitating going to one income in which case you would be house poor.

Regards,
John
Our current income with 1 job will be around 200k

our mortgage is
630k borrowed at 3.625%

in 10 years principal left on mortgage will be:

488k

assuming 2% inflation every year, that will be 398k in todays dollars. 2.5% inflation would be 378k 3% 359k


I think with 1 income we can swing it. In the short term it might be a little tighter than we’re used to but over time as inflation eats away at the mortgage and pushes my pay higher it’ll get easier and easier.

User avatar
Thrifty Femme
Posts: 278
Joined: Sun Apr 12, 2015 1:54 pm

Re: we bought a house - are we housepoor now?

Post by Thrifty Femme » Sun Oct 29, 2017 4:32 pm

panchilly wrote:
Sun Oct 29, 2017 3:46 pm

Could you explain how having 1 child would suddenly make us house poor given we are projecting 40+K of incremental savings in the next year after buying this house?
In addition to moving to a single income, multiple kids might mean outgrowing the house.

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 4:35 pm

Thrifty Femme wrote:
Sun Oct 29, 2017 4:32 pm
panchilly wrote:
Sun Oct 29, 2017 3:46 pm

Could you explain how having 1 child would suddenly make us house poor given we are projecting 40+K of incremental savings in the next year after buying this house?
In addition to moving to a single income, multiple kids might mean outgrowing the house.
We won't be growing out of this house any time soon ;)

DrGoogle2017
Posts: 509
Joined: Mon Aug 14, 2017 12:31 pm

Re: we bought a house - are we housepoor now?

Post by DrGoogle2017 » Sun Oct 29, 2017 4:36 pm

Who cares? Enjoy your new house.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 4:39 pm

panchilly wrote:
Sun Oct 29, 2017 3:38 pm
KlangFool wrote:
Sun Oct 29, 2017 3:08 pm
OP,

Your house price = 900K.

Your none house related asset = 750K

A) Your house's value is bigger than your none house related asset. You are "House Poor".

B) How much can you save every year after buying this house?

C) Will your income, bonus, and RSU continue for a few more years?

KlangFool
Will probably be able to save another 30-40k year 1 owning this house. That is not including the principal payments which will total nearly 11k for the year. So in total i'd say 40-50k savings including principal against mortgage.

I expect income, bonus, and RSU to continue for quite some time.
panchilly,

Do you plan to have any kids?

KlangFool

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 4:40 pm

KlangFool wrote:
Sun Oct 29, 2017 4:39 pm
panchilly wrote:
Sun Oct 29, 2017 3:38 pm
KlangFool wrote:
Sun Oct 29, 2017 3:08 pm
OP,

Your house price = 900K.

Your none house related asset = 750K

A) Your house's value is bigger than your none house related asset. You are "House Poor".

B) How much can you save every year after buying this house?

C) Will your income, bonus, and RSU continue for a few more years?

KlangFool
Will probably be able to save another 30-40k year 1 owning this house. That is not including the principal payments which will total nearly 11k for the year. So in total i'd say 40-50k savings including principal against mortgage.

I expect income, bonus, and RSU to continue for quite some time.
panchilly,

Do you plan to have any kids?

KlangFool
Yes.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 4:41 pm

panchilly wrote:
Sun Oct 29, 2017 4:20 pm
John Laurens wrote:
Sun Oct 29, 2017 3:53 pm
Having children increases the odds of necessitating going to one income in which case you would be house poor.

Regards,
John
Our current income with 1 job will be around 200k

our mortgage is
630k borrowed at 3.625%

in 10 years principal left on mortgage will be:

488k

assuming 2% inflation every year, that will be 398k in todays dollars. 2.5% inflation would be 378k 3% 359k


I think with 1 income we can swing it. In the short term it might be a little tighter than we’re used to but over time as inflation eats away at the mortgage and pushes my pay higher it’ll get easier and easier.
panchilly,

Implicit in your assumption is that your income increase keeps up with the inflation.

KlangFool

User avatar
Toons
Posts: 12032
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: we bought a house - are we housepoor now?

Post by Toons » Sun Oct 29, 2017 4:42 pm

randomizer wrote:
Sun Oct 29, 2017 2:40 pm
Doesn't seem house poor to me, although you could probably have bought much less house.
+1
Bingo :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 4:43 pm

KlangFool wrote:
Sun Oct 29, 2017 4:41 pm
panchilly wrote:
Sun Oct 29, 2017 4:20 pm
John Laurens wrote:
Sun Oct 29, 2017 3:53 pm
Having children increases the odds of necessitating going to one income in which case you would be house poor.

Regards,
John
Our current income with 1 job will be around 200k

our mortgage is
630k borrowed at 3.625%

in 10 years principal left on mortgage will be:

488k

assuming 2% inflation every year, that will be 398k in todays dollars. 2.5% inflation would be 378k 3% 359k


I think with 1 income we can swing it. In the short term it might be a little tighter than we’re used to but over time as inflation eats away at the mortgage and pushes my pay higher it’ll get easier and easier.
panchilly,

Implicit in your assumption is that your income increase keeps up with the inflation.

KlangFool
It may also beat inflation, possibly by a significant margin. Can't predict the future.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 4:44 pm

panchilly wrote:
Sun Oct 29, 2017 4:40 pm
KlangFool wrote:
Sun Oct 29, 2017 4:39 pm
panchilly wrote:
Sun Oct 29, 2017 3:38 pm
KlangFool wrote:
Sun Oct 29, 2017 3:08 pm
OP,

Your house price = 900K.

Your none house related asset = 750K

A) Your house's value is bigger than your none house related asset. You are "House Poor".

B) How much can you save every year after buying this house?

C) Will your income, bonus, and RSU continue for a few more years?

KlangFool
Will probably be able to save another 30-40k year 1 owning this house. That is not including the principal payments which will total nearly 11k for the year. So in total i'd say 40-50k savings including principal against mortgage.

I expect income, bonus, and RSU to continue for quite some time.
panchilly,

Do you plan to have any kids?

KlangFool
Yes.
panchilly,

So, essentially, you will save nothing after you have kids. Welcome to the "House Poor" world.

KlangFool

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 4:50 pm

KlangFool wrote:
Sun Oct 29, 2017 4:44 pm
panchilly wrote:
Sun Oct 29, 2017 4:40 pm
KlangFool wrote:
Sun Oct 29, 2017 4:39 pm
panchilly wrote:
Sun Oct 29, 2017 3:38 pm
KlangFool wrote:
Sun Oct 29, 2017 3:08 pm
OP,

Your house price = 900K.

Your none house related asset = 750K

A) Your house's value is bigger than your none house related asset. You are "House Poor".

B) How much can you save every year after buying this house?

C) Will your income, bonus, and RSU continue for a few more years?

KlangFool
Will probably be able to save another 30-40k year 1 owning this house. That is not including the principal payments which will total nearly 11k for the year. So in total i'd say 40-50k savings including principal against mortgage.

I expect income, bonus, and RSU to continue for quite some time.
panchilly,

Do you plan to have any kids?

KlangFool
Yes.
panchilly,

So, essentially, you will save nothing after you have kids. Welcome to the "House Poor" world.

KlangFool
I think even with 1 child + only my income, I will continue to save quite a bit each year. I think i can save 20k year 1 on current income with 1 child and wife not working. I think if you factor in kids, buying a home makes even more sense. The alternative of renting with kids is much worse. As a DINK couple you can make do with a 1br apartment, but with kids you are looking at 2br or probably 3br. 2 and 3br apartments are very expensive in the Boston area. Those apartments continue to get more expensive via rent increases each and every year with nothing to show for it.

The principal portion of the mortgage payment + inflation wearing away at the balance due starts to shine over a long period of time (7-10 years). I think owning a home is a no brainer with kids.
Last edited by panchilly on Sun Oct 29, 2017 4:51 pm, edited 1 time in total.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 4:50 pm

panchilly wrote:
Sun Oct 29, 2017 4:43 pm
KlangFool wrote:
Sun Oct 29, 2017 4:41 pm
panchilly wrote:
Sun Oct 29, 2017 4:20 pm
John Laurens wrote:
Sun Oct 29, 2017 3:53 pm
Having children increases the odds of necessitating going to one income in which case you would be house poor.

Regards,
John
Our current income with 1 job will be around 200k

our mortgage is
630k borrowed at 3.625%

in 10 years principal left on mortgage will be:

488k

assuming 2% inflation every year, that will be 398k in todays dollars. 2.5% inflation would be 378k 3% 359k


I think with 1 income we can swing it. In the short term it might be a little tighter than we’re used to but over time as inflation eats away at the mortgage and pushes my pay higher it’ll get easier and easier.
panchilly,

Implicit in your assumption is that your income increase keeps up with the inflation.

KlangFool
It may also beat inflation, possibly by a significant margin. Can't predict the future.
panchilly,

You buy this house with the assumption that your income will beat inflation by a large margin. You are spending your future money. I wish you best of luck.

KlangFool

jucor
Posts: 114
Joined: Tue Jun 02, 2015 8:35 am

Re: we bought a house - are we housepoor now?

Post by jucor » Sun Oct 29, 2017 4:52 pm

Boston area is HCOL. You are in mid '30s with net worth of over $1m. You make good money. You still plan on saving, and can do so. You're doing very well, IMHO. :sharebeer

Comments like some that say you've not saved enough with over $1m by mid '30s make me wonder what sort of world those BHs inhabit. Apparently not mine.

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 4:53 pm

KlangFool wrote:
Sun Oct 29, 2017 4:50 pm
panchilly wrote:
Sun Oct 29, 2017 4:43 pm
KlangFool wrote:
Sun Oct 29, 2017 4:41 pm
panchilly wrote:
Sun Oct 29, 2017 4:20 pm
John Laurens wrote:
Sun Oct 29, 2017 3:53 pm
Having children increases the odds of necessitating going to one income in which case you would be house poor.

Regards,
John
Our current income with 1 job will be around 200k

our mortgage is
630k borrowed at 3.625%

in 10 years principal left on mortgage will be:

488k

assuming 2% inflation every year, that will be 398k in todays dollars. 2.5% inflation would be 378k 3% 359k


I think with 1 income we can swing it. In the short term it might be a little tighter than we’re used to but over time as inflation eats away at the mortgage and pushes my pay higher it’ll get easier and easier.
panchilly,

Implicit in your assumption is that your income increase keeps up with the inflation.

KlangFool
It may also beat inflation, possibly by a significant margin. Can't predict the future.
panchilly,

You buy this house with the assumption that your income will beat inflation by a large margin. You are spending your future money. I wish you best of luck.

KlangFool
Where did i say that i based the purchase on that assumption? I bought the house with the expectation that my income will keep up with inflation. I mentioned beating inflation because you mentioned the possibility of not keeping up with inflation. My wages are largely based on the market for my skills. I do not believe it is possible to time that market just as I don't think it is possible to time the S&P500.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 4:58 pm

panchilly wrote:
Sun Oct 29, 2017 4:53 pm
KlangFool wrote:
Sun Oct 29, 2017 4:50 pm
panchilly wrote:
Sun Oct 29, 2017 4:43 pm
KlangFool wrote:
Sun Oct 29, 2017 4:41 pm
panchilly wrote:
Sun Oct 29, 2017 4:20 pm


Our current income with 1 job will be around 200k

our mortgage is
630k borrowed at 3.625%

in 10 years principal left on mortgage will be:

488k

assuming 2% inflation every year, that will be 398k in todays dollars. 2.5% inflation would be 378k 3% 359k


I think with 1 income we can swing it. In the short term it might be a little tighter than we’re used to but over time as inflation eats away at the mortgage and pushes my pay higher it’ll get easier and easier.
panchilly,

Implicit in your assumption is that your income increase keeps up with the inflation.

KlangFool
It may also beat inflation, possibly by a significant margin. Can't predict the future.
panchilly,

You buy this house with the assumption that your income will beat inflation by a large margin. You are spending your future money. I wish you best of luck.

KlangFool
Where did i say that i based the purchase on that assumption? I bought the house with the expectation that my income will keep up with inflation. I mentioned beating inflation because you mentioned the possibility of not keeping up with inflation. My wages are largely based on the market for my skills. I do not believe it is possible to time that market just as I don't think it is possible to time the S&P500.
panchilly,

I hope your assumption works out.

KlangFool

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 5:01 pm

KlangFool wrote:
Sun Oct 29, 2017 4:58 pm
panchilly wrote:
Sun Oct 29, 2017 4:53 pm
KlangFool wrote:
Sun Oct 29, 2017 4:50 pm
panchilly wrote:
Sun Oct 29, 2017 4:43 pm
KlangFool wrote:
Sun Oct 29, 2017 4:41 pm


panchilly,

Implicit in your assumption is that your income increase keeps up with the inflation.

KlangFool
It may also beat inflation, possibly by a significant margin. Can't predict the future.
panchilly,

You buy this house with the assumption that your income will beat inflation by a large margin. You are spending your future money. I wish you best of luck.

KlangFool
Where did i say that i based the purchase on that assumption? I bought the house with the expectation that my income will keep up with inflation. I mentioned beating inflation because you mentioned the possibility of not keeping up with inflation. My wages are largely based on the market for my skills. I do not believe it is possible to time that market just as I don't think it is possible to time the S&P500.
panchilly,

I hope your assumption works out.

KlangFool
Were you traumatized by a huge investment loss or something? Why are you so extremely risk averse.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 5:15 pm

panchilly wrote:
Sun Oct 29, 2017 5:01 pm
KlangFool wrote:
Sun Oct 29, 2017 4:58 pm
panchilly wrote:
Sun Oct 29, 2017 4:53 pm
KlangFool wrote:
Sun Oct 29, 2017 4:50 pm
panchilly wrote:
Sun Oct 29, 2017 4:43 pm


It may also beat inflation, possibly by a significant margin. Can't predict the future.
panchilly,

You buy this house with the assumption that your income will beat inflation by a large margin. You are spending your future money. I wish you best of luck.

KlangFool
Where did i say that i based the purchase on that assumption? I bought the house with the expectation that my income will keep up with inflation. I mentioned beating inflation because you mentioned the possibility of not keeping up with inflation. My wages are largely based on the market for my skills. I do not believe it is possible to time that market just as I don't think it is possible to time the S&P500.
panchilly,

I hope your assumption works out.

KlangFool
Were you traumatized by a huge investment loss or something? Why are you so extremely risk averse.
panchilly,

1) I had survived Houston Oil Bust, Texas Saving & Loan crisis, Asian Currency Crisis, Telecom bust, 2008/9 recession.

2) Once upon a time, at 30+, I was like you. I thought that my pay could only go up and keep up with the inflation.

3) Then, my pay plateau and stays stagnant over the last 10+ years. I had quarterly and annual laid off over the last 10+ years. I was unemployed for more than 1 years a few times.

4) But, I am the lucky one. Many of my "House Poor" peers were permanently unemployed and under-employed in their 40s and 50s. Their houses destroyed them financially.

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool

User avatar
burt
Posts: 571
Joined: Sun Feb 17, 2008 7:47 am

Re: we bought a house - are we housepoor now?

Post by burt » Sun Oct 29, 2017 5:29 pm

Housepoor ? yes
How stable are your jobs ?
I have never spent more than 1.5X my annual income on housing over 40 years.
Massachusetts looks to be a recourse state. ie the bank can come after other assets.

A house can be a damn heavy ball and chain when stuff hits the fan.

burt

cherijoh
Posts: 4055
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: we bought a house - are we housepoor now?

Post by cherijoh » Sun Oct 29, 2017 5:30 pm

panchilly wrote:
Sun Oct 29, 2017 4:53 pm
Where did i say that i based the purchase on that assumption? I bought the house with the expectation that my income will keep up with inflation. I mentioned beating inflation because you mentioned the possibility of not keeping up with inflation. My wages are largely based on the market for my skills. I do not believe it is possible to time that market just as I don't think it is possible to time the S&P500.
When you are trying to decide how much to spend on a house, you should try and make conservative assumptions about any future increases in wages. Having your wages keep up with inflation as you age is a somewhat optimistic assumption in my opinion. It is much more likely to occur with younger employees who are judged more likely to bail on a job to get a bump in salary. Older workers have more family responsibilities and often a harder time finding a job so employers may try and trim a little figuring the employee is less likely to bail.
panchilly wrote:
Sun Oct 29, 2017 3:38 pm
Will probably be able to save another 30-40k year 1 owning this house. That is not including the principal payments which will total nearly 11k for the year. So in total i'd say 40-50k savings including principal against mortgage.

I expect income, bonus, and RSU to continue for quite some time.
I wouldn't count principal payments as savings - you can't lop off the corner of the house to pay an unexpected expense. While you can borrow money against home equity you would still need to pay it back.

Note principal payments would count towards your increase in net worth (as would increases in your home value). But net worth includes both liquid and illiquid assets. Savings are by definition liquid assets while home equity is NOT.

rebellovw
Posts: 241
Joined: Tue Aug 16, 2016 4:30 pm

Re: we bought a house - are we housepoor now?

Post by rebellovw » Sun Oct 29, 2017 5:34 pm

Image

Hhaahaa. Enjoy the new house - we were house poor the longest time - but did well when we sold.

HornedToad
Posts: 674
Joined: Wed May 21, 2008 12:36 am

Re: we bought a house - are we housepoor now?

Post by HornedToad » Sun Oct 29, 2017 5:36 pm

panchilly wrote:
Sun Oct 29, 2017 4:50 pm
KlangFool wrote:
Sun Oct 29, 2017 4:44 pm
panchilly wrote:
Sun Oct 29, 2017 4:40 pm
KlangFool wrote:
Sun Oct 29, 2017 4:39 pm
panchilly wrote:
Sun Oct 29, 2017 3:38 pm


Will probably be able to save another 30-40k year 1 owning this house. That is not including the principal payments which will total nearly 11k for the year. So in total i'd say 40-50k savings including principal against mortgage.

I expect income, bonus, and RSU to continue for quite some time.
panchilly,

Do you plan to have any kids?

KlangFool
Yes.
panchilly,

So, essentially, you will save nothing after you have kids. Welcome to the "House Poor" world.

KlangFool
I think even with 1 child + only my income, I will continue to save quite a bit each year. I think i can save 20k year 1 on current income with 1 child and wife not working. I think if you factor in kids, buying a home makes even more sense. The alternative of renting with kids is much worse. As a DINK couple you can make do with a 1br apartment, but with kids you are looking at 2br or probably 3br. 2 and 3br apartments are very expensive in the Boston area. Those apartments continue to get more expensive via rent increases each and every year with nothing to show for it.

The principal portion of the mortgage payment + inflation wearing away at the balance due starts to shine over a long period of time (7-10 years). I think owning a home is a no brainer with kids.
House poor doesn't necessarily mean that the house won't be a good decision, or that you can't afford it. It just means you are spending a large portion of your income on the house and have little remaining for savings after that. SatuMedia also probably has an overly conservative definition of house poor, since if you are maxing out 401ks but then are just taxable account housepoor you are still in a good place.

With my house I'm currently comfortable, but when we have 1-2 kids we'd also probably be house poor-ish. But priorities would have changed and the nicer house/location is where would rather spend money than vacations, dinners, etc.

Look at house poor as needing to be smart with your other splurges since you've already splurged on the house.

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 5:49 pm

KlangFool wrote:
Sun Oct 29, 2017 5:15 pm
panchilly wrote:
Sun Oct 29, 2017 5:01 pm
KlangFool wrote:
Sun Oct 29, 2017 4:58 pm
panchilly wrote:
Sun Oct 29, 2017 4:53 pm
KlangFool wrote:
Sun Oct 29, 2017 4:50 pm


panchilly,

You buy this house with the assumption that your income will beat inflation by a large margin. You are spending your future money. I wish you best of luck.

KlangFool
Where did i say that i based the purchase on that assumption? I bought the house with the expectation that my income will keep up with inflation. I mentioned beating inflation because you mentioned the possibility of not keeping up with inflation. My wages are largely based on the market for my skills. I do not believe it is possible to time that market just as I don't think it is possible to time the S&P500.
panchilly,

I hope your assumption works out.

KlangFool
Were you traumatized by a huge investment loss or something? Why are you so extremely risk averse.
panchilly,

1) I had survived Houston Oil Bust, Texas Saving & Loan crisis, Asian Currency Crisis, Telecom bust, 2008/9 recession.

2) Once upon a time, at 30+, I was like you. I thought that my pay could only go up and keep up with the inflation.

3) Then, my pay plateau and stays stagnant over the last 10+ years. I had quarterly and annual laid off over the last 10+ years. I was unemployed for more than 1 years a few times.

4) But, I am the lucky one. Many of my "House Poor" peers were permanently unemployed and under-employed in their 40s and 50s. Their houses destroyed them financially.

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?

stan1
Posts: 4979
Joined: Mon Oct 08, 2007 4:35 pm

Re: we bought a house - are we housepoor now?

Post by stan1 » Sun Oct 29, 2017 5:53 pm

panchilly wrote:
Sun Oct 29, 2017 5:49 pm
KlangFool wrote:
Sun Oct 29, 2017 5:15 pm

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?
Let me guess .... I think he or she would rent. :oops:

(Apologies if I'm wrong)

User avatar
Mlm
Posts: 150
Joined: Sat Apr 09, 2016 6:00 pm

Re: we bought a house - are we housepoor now?

Post by Mlm » Sun Oct 29, 2017 6:05 pm

That seems like an insane price but i have never lived in a HCOL area. 30% down is nice and if you can boost your emergency fund by 30-40K per year you look OK. I have purchased homes at the age of 21,25,37 and 43. I've seen good times and bad but never missed a mortgage payment. Things can get tight for a number of reasons but if you have the emergency fund in place and plan on staying there for at least 5-7 years it helps.

Congrats on the new home :D

Mary
Reality has a way of catching up with you

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 6:11 pm

panchilly wrote:
Sun Oct 29, 2017 5:49 pm
KlangFool wrote:
Sun Oct 29, 2017 5:15 pm
panchilly wrote:
Sun Oct 29, 2017 5:01 pm
KlangFool wrote:
Sun Oct 29, 2017 4:58 pm
panchilly wrote:
Sun Oct 29, 2017 4:53 pm


Where did i say that i based the purchase on that assumption? I bought the house with the expectation that my income will keep up with inflation. I mentioned beating inflation because you mentioned the possibility of not keeping up with inflation. My wages are largely based on the market for my skills. I do not believe it is possible to time that market just as I don't think it is possible to time the S&P500.
panchilly,

I hope your assumption works out.

KlangFool
Were you traumatized by a huge investment loss or something? Why are you so extremely risk averse.
panchilly,

1) I had survived Houston Oil Bust, Texas Saving & Loan crisis, Asian Currency Crisis, Telecom bust, 2008/9 recession.

2) Once upon a time, at 30+, I was like you. I thought that my pay could only go up and keep up with the inflation.

3) Then, my pay plateau and stays stagnant over the last 10+ years. I had quarterly and annual laid off over the last 10+ years. I was unemployed for more than 1 years a few times.

4) But, I am the lucky one. Many of my "House Poor" peers were permanently unemployed and under-employed in their 40s and 50s. Their houses destroyed them financially.

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?
panchilly,

I would not buy a house at all until I have kids. If not, I may force to move if the school in my neighborhood going bad.

My rule for buying a house.

A) The PITI (20% downpayment and 30 years loan) has to be 20% to 30% less than renting.

B) The house price has to be 1/2 to 1/3 of my net worth excluding the house.

KlangFool

User avatar
Sandtrap
Posts: 2400
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳

Re: we bought a house - are we housepoor now?

Post by Sandtrap » Sun Oct 29, 2017 6:13 pm

Nearly everyone in Hawaii, Oahu specifically, that owns a home is "housepoor" and a millionaire. :shock:
Alternates with New York as highest home values and HCOL.

lostdog
Posts: 630
Joined: Thu Feb 04, 2016 2:15 pm

Re: we bought a house - are we housepoor now?

Post by lostdog » Sun Oct 29, 2017 6:15 pm

stan1 wrote:
Sun Oct 29, 2017 5:53 pm
panchilly wrote:
Sun Oct 29, 2017 5:49 pm
KlangFool wrote:
Sun Oct 29, 2017 5:15 pm

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?
Let me guess .... I think he or she would rent. :oops:

(Apologies if I'm wrong)
Nothing wrong with renting. Yes you're house poor. Too much house.
"Our life is frittered away by detail. Simplify, simplify." -Thoreau

User avatar
unclescrooge
Posts: 1604
Joined: Thu Jun 07, 2012 7:00 pm

Re: we bought a house - are we housepoor now?

Post by unclescrooge » Sun Oct 29, 2017 6:22 pm

KlangFool wrote:
Sun Oct 29, 2017 6:11 pm
panchilly wrote:
Sun Oct 29, 2017 5:49 pm
KlangFool wrote:
Sun Oct 29, 2017 5:15 pm
panchilly wrote:
Sun Oct 29, 2017 5:01 pm
KlangFool wrote:
Sun Oct 29, 2017 4:58 pm


panchilly,

I hope your assumption works out.

KlangFool
Were you traumatized by a huge investment loss or something? Why are you so extremely risk averse.
panchilly,

1) I had survived Houston Oil Bust, Texas Saving & Loan crisis, Asian Currency Crisis, Telecom bust, 2008/9 recession.

2) Once upon a time, at 30+, I was like you. I thought that my pay could only go up and keep up with the inflation.

3) Then, my pay plateau and stays stagnant over the last 10+ years. I had quarterly and annual laid off over the last 10+ years. I was unemployed for more than 1 years a few times.

4) But, I am the lucky one. Many of my "House Poor" peers were permanently unemployed and under-employed in their 40s and 50s. Their houses destroyed them financially.

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?
panchilly,

I would not buy a house at all until I have kids. If not, I may force to move if the school in my neighborhood going bad.

My rule for buying a house.

A) The PITI (20% downpayment and 30 years loan) has to be 20% to 30% less than renting.

B) The house price has to be 1/2 to 1/3 of my net worth excluding the house.

KlangFool
I don't think your numbers work for HCOL areas.

Also, I think you're scarred by your experiences in Texas. Texas, like Arizona, has tons of buildable land, easy permitting process, and large labor pool. As a result, it is cheap, easy and quick to build new housing stock. Housing barely keeps up with inflation here.

HCOL areas like Boston and Los Angeles have none of these characteristics. As a result, there is a pent up demand for housing that never gets any relief. Housing tends to exceed inflation here.

Looking at these geographies through the lens of your experience results in an overly conservative outlook.

John Laurens
Posts: 253
Joined: Mon Nov 14, 2016 7:31 pm

Re: we bought a house - are we housepoor now?

Post by John Laurens » Sun Oct 29, 2017 6:26 pm

Part of the problem with your question is home prices are very localized. 900k houses in my city are mansions with at least a weekly maid and gardener.

My own rule for myself is a home value not more than twice my salary. My wife is a SAHM and we personally would not buy a house that forced her to work outside the home.

Regards,
John

chevca
Posts: 458
Joined: Wed Jul 26, 2017 11:22 am

Re: we bought a house - are we housepoor now?

Post by chevca » Sun Oct 29, 2017 6:26 pm

DrGoogle2017 wrote:
Sun Oct 29, 2017 4:36 pm
Who cares? Enjoy your new house.
This ^^

And, don't listen to Klan's rules. Very few people could afford a house based on his rules.

User avatar
Sandtrap
Posts: 2400
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳

Re: we bought a house - are we housepoor now?

Post by Sandtrap » Sun Oct 29, 2017 6:30 pm

chevca wrote:
Sun Oct 29, 2017 6:26 pm
DrGoogle2017 wrote:
Sun Oct 29, 2017 4:36 pm
Who cares? Enjoy your new house.
This ^^

And, don't listen to Klan's rules. Very few people could afford a house based on his rules.
i waited until I could pay for all of a house in cash, every time as I leveled up. That's a tough criteria. Make's "KlangFoolls" easier indeed. :D

chevca
Posts: 458
Joined: Wed Jul 26, 2017 11:22 am

Re: we bought a house - are we housepoor now?

Post by chevca » Sun Oct 29, 2017 6:33 pm

Not by much. :happy

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 6:37 pm

A few things:

#1 Klangfools rules of thumb for buying housing absolutely will not work in any MCOL or HCOL area.

#2 I think people need to be careful with rules of thumb that rely on a multiple of income (e.g. house price = 3x income, etc.) Not all expenses scale linearly as income grows. Many expenses level off at a certain point. A person with a higher income has much greater ability to absorb additional housing costs (higher multiple of salary) while someone on a lower income would not be able to do that since most of their budget is already filled with necessities. When you compare LCOL vs HCOL areas it is mainly the housing expense and taxes that are the difference. HCOL have more people spending a higher multiple on housing, but it is a wash when you take into consideration the much higher incomes in HCOL areas.

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 6:38 pm

unclescrooge wrote:
Sun Oct 29, 2017 6:22 pm
KlangFool wrote:
Sun Oct 29, 2017 6:11 pm
panchilly wrote:
Sun Oct 29, 2017 5:49 pm
KlangFool wrote:
Sun Oct 29, 2017 5:15 pm
panchilly wrote:
Sun Oct 29, 2017 5:01 pm


Were you traumatized by a huge investment loss or something? Why are you so extremely risk averse.
panchilly,

1) I had survived Houston Oil Bust, Texas Saving & Loan crisis, Asian Currency Crisis, Telecom bust, 2008/9 recession.

2) Once upon a time, at 30+, I was like you. I thought that my pay could only go up and keep up with the inflation.

3) Then, my pay plateau and stays stagnant over the last 10+ years. I had quarterly and annual laid off over the last 10+ years. I was unemployed for more than 1 years a few times.

4) But, I am the lucky one. Many of my "House Poor" peers were permanently unemployed and under-employed in their 40s and 50s. Their houses destroyed them financially.

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?
panchilly,

I would not buy a house at all until I have kids. If not, I may force to move if the school in my neighborhood going bad.

My rule for buying a house.

A) The PITI (20% downpayment and 30 years loan) has to be 20% to 30% less than renting.

B) The house price has to be 1/2 to 1/3 of my net worth excluding the house.

KlangFool
I don't think your numbers work for HCOL areas.

Also, I think you're scarred by your experiences in Texas. Texas, like Arizona, has tons of buildable land, easy permitting process, and large labor pool. As a result, it is cheap, easy and quick to build new housing stock. Housing barely keeps up with inflation here.

HCOL areas like Boston and Los Angeles have none of these characteristics. As a result, there is a pent up demand for housing that never gets any relief. Housing tends to exceed inflation here.

Looking at these geographies through the lens of your experience results in an overly conservative outlook.
unclescrooge,

<<I don't think your numbers work for HCOL areas.>>

I live in Northern VA/ DC Metro area. It is not VHCOL like Boston/ LA / Bay Area /NY. But, it is HCOL area. My area has one of the best price growth in term of real estate since 2008/2009 recession. But, it is still down from the 2004/2005 level.

<<HCOL areas like Boston and Los Angeles have none of these characteristics. As a result, there is a pent up demand for housing that never gets any relief. Housing tends to exceed inflation here.>>

How does this help anyone if they are unemployed for a few years during a recession when both housing and stock market are down? They will be wiped out before the market recover. This happened in every recession to the "House Poor" folks.

KlangFool

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 6:38 pm

unclescrooge wrote:
Sun Oct 29, 2017 6:22 pm
KlangFool wrote:
Sun Oct 29, 2017 6:11 pm
panchilly wrote:
Sun Oct 29, 2017 5:49 pm
KlangFool wrote:
Sun Oct 29, 2017 5:15 pm
panchilly wrote:
Sun Oct 29, 2017 5:01 pm


Were you traumatized by a huge investment loss or something? Why are you so extremely risk averse.
panchilly,

1) I had survived Houston Oil Bust, Texas Saving & Loan crisis, Asian Currency Crisis, Telecom bust, 2008/9 recession.

2) Once upon a time, at 30+, I was like you. I thought that my pay could only go up and keep up with the inflation.

3) Then, my pay plateau and stays stagnant over the last 10+ years. I had quarterly and annual laid off over the last 10+ years. I was unemployed for more than 1 years a few times.

4) But, I am the lucky one. Many of my "House Poor" peers were permanently unemployed and under-employed in their 40s and 50s. Their houses destroyed them financially.

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?
panchilly,

I would not buy a house at all until I have kids. If not, I may force to move if the school in my neighborhood going bad.

My rule for buying a house.

A) The PITI (20% downpayment and 30 years loan) has to be 20% to 30% less than renting.

B) The house price has to be 1/2 to 1/3 of my net worth excluding the house.

KlangFool
I don't think your numbers work for HCOL areas.

Also, I think you're scarred by your experiences in Texas. Texas, like Arizona, has tons of buildable land, easy permitting process, and large labor pool. As a result, it is cheap, easy and quick to build new housing stock. Housing barely keeps up with inflation here.

HCOL areas like Boston and Los Angeles have none of these characteristics. As a result, there is a pent up demand for housing that never gets any relief. Housing tends to exceed inflation here.

Looking at these geographies through the lens of your experience results in an overly conservative outlook.
unclescrooge,

<<I don't think your numbers work for HCOL areas.>>

I live in Northern VA/ DC Metro area. It is not VHCOL like Boston/ LA / Bay Area /NY. But, it is HCOL area. My area has one of the best price growth in term of real estate since 2008/2009 recession. But, it is still down from the 2004/2005 level.

<<HCOL areas like Boston and Los Angeles have none of these characteristics. As a result, there is a pent up demand for housing that never gets any relief. Housing tends to exceed inflation here.>>

How does this help anyone if they are unemployed for a few years during a recession when both housing and stock market are down? They will be wiped out before the market recover. This happened in every recession to the "House Poor" folks.

KlangFool

KlangFool
Posts: 6982
Joined: Sat Oct 11, 2008 12:35 pm

Re: we bought a house - are we housepoor now?

Post by KlangFool » Sun Oct 29, 2017 6:48 pm

panchilly wrote:
Sun Oct 29, 2017 6:37 pm
A few things:

#1 Klangfools rules of thumb for buying housing absolutely will not work in any MCOL or HCOL area.

#2 I think people need to be careful with rules of thumb that rely on a multiple of income (e.g. house price = 3x income, etc.) Not all expenses scale linearly as income grows. Many expenses level off at a certain point. A person with a higher income has much greater ability to absorb additional housing costs (higher multiple of salary) while someone on a lower income would not be able to do that since most of their budget is already filled with necessities. When you compare LCOL vs HCOL areas it is mainly the housing expense and taxes that are the difference. HCOL have more people spending a higher multiple on housing, but it is a wash when you take into consideration the much higher incomes in HCOL areas.
panchilly,

<<#1 Klangfools rules of thumb for buying housing absolutely will not work in any MCOL or HCOL area. >>

I bought a townhouse a few years ago. The house in my areas is around $200 per square feet. It is an HCOL area. So, it works for me.

<< #2 I think people need to be careful with rules of thumb that rely on a multiple of income (e.g. house price = 3x income, etc.) Not all expenses scale linearly as income grows.>>

You just bought the house. So, basically, you have no real experience living in a 900K house. The annual median household income in my area is 150K. The median house price in my area is around 500K to 600K. All my peers' household income is in your range with house price around 3X their gross income. So, I have plenty of first-hand observations with "House Poor" people. We are the only few families that send our children to college without a student loan.

KlangFool

panchilly
Posts: 105
Joined: Sat May 14, 2016 9:57 am

Re: we bought a house - are we housepoor now?

Post by panchilly » Sun Oct 29, 2017 6:48 pm

KlangFool wrote:
Sun Oct 29, 2017 6:38 pm
unclescrooge wrote:
Sun Oct 29, 2017 6:22 pm
KlangFool wrote:
Sun Oct 29, 2017 6:11 pm
panchilly wrote:
Sun Oct 29, 2017 5:49 pm
KlangFool wrote:
Sun Oct 29, 2017 5:15 pm


panchilly,

1) I had survived Houston Oil Bust, Texas Saving & Loan crisis, Asian Currency Crisis, Telecom bust, 2008/9 recession.

2) Once upon a time, at 30+, I was like you. I thought that my pay could only go up and keep up with the inflation.

3) Then, my pay plateau and stays stagnant over the last 10+ years. I had quarterly and annual laid off over the last 10+ years. I was unemployed for more than 1 years a few times.

4) But, I am the lucky one. Many of my "House Poor" peers were permanently unemployed and under-employed in their 40s and 50s. Their houses destroyed them financially.

Your house purchase is based on assumption that your employment will continue and do well for a fair amount of time. It did not turn out that way for many of my peers. I wish you best of luck.

KlangFool
If you were in my shoes, how much house would you buy?
panchilly,

I would not buy a house at all until I have kids. If not, I may force to move if the school in my neighborhood going bad.

My rule for buying a house.

A) The PITI (20% downpayment and 30 years loan) has to be 20% to 30% less than renting.

B) The house price has to be 1/2 to 1/3 of my net worth excluding the house.

KlangFool
I don't think your numbers work for HCOL areas.

Also, I think you're scarred by your experiences in Texas. Texas, like Arizona, has tons of buildable land, easy permitting process, and large labor pool. As a result, it is cheap, easy and quick to build new housing stock. Housing barely keeps up with inflation here.

HCOL areas like Boston and Los Angeles have none of these characteristics. As a result, there is a pent up demand for housing that never gets any relief. Housing tends to exceed inflation here.

Looking at these geographies through the lens of your experience results in an overly conservative outlook.
unclescrooge,

<<I don't think your numbers work for HCOL areas.>>

I live in Northern VA/ DC Metro area. It is not VHCOL like Boston/ LA / Bay Area /NY. But, it is HCOL area. My area has one of the best price growth in term of real estate since 2008/2009 recession. But, it is still down from the 2004/2005 level.

<<HCOL areas like Boston and Los Angeles have none of these characteristics. As a result, there is a pent up demand for housing that never gets any relief. Housing tends to exceed inflation here.>>

How does this help anyone if they are unemployed for a few years during a recession when both housing and stock market are down? They will be wiped out before the market recover. This happened in every recession to the "House Poor" folks.

KlangFool
Klangfool,

You are right, if someone is unemployed for a full 2 years with a large mortgage payment, that will wipe out a huge chunk of their savings and will set them back quite a bit.

It's a risk vs reward situation. Taking higher risks tend to result in higher returns to compensate for that risk. A key part of why I am choosing to buy this house is that I still have 750k in liquid assets not including the house which is more than i owe (630k). That will greatly help in the event of any job loss or to weather a recession. I would absolutely not have purchased this home if I didn't have that money. I view that nestegg as a counter balance to the added risk profile with the home purchase.

What is your asset allocation? With your risk tolerance i'd imagine you'd be nearly 100% in bonds?

Locked