Are New Anesthesia Attendings HENRYs or are we Just HENR

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ryanjmy said:
I don’t think you can make this recommendation without seeing pictures of the wife. If she’s a 10/10 maybe it’s worth being house poor for 3 decades?
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First of all, I think we can all agree that personal finance is more complicated than simply inputs versus outputs.

In the same vein, whether or not he divorces his wife is more complicated than her hotness alone.

I submit to you, The Vicky Mendoza line:


This is particularly relevant given that the housing purchase would suggest that this calculation might be in play.
 
AKMD_1984 said:
a life with debt is not a life of dignity or self respect

again this is not a dignified way to live for you and your family and your post is just a symptom of that

there is a reason almost every decent financial investor recommends paying off your biggest purchase - aka a house as soon as possible

most do it within 10 years to achieve real financial freedom

or buy a house with cash, which i think is still the best way to pay for a house

they don’t play these games of “s/p or this stock pays more compared to interest rate on mortgage or my deduction on interest” etc…

effects of having large debt are psychological and it puts you in a never ending battle where you’re trying to breathe and catch up at the same time

both of these are impossible simultaneously and within 4-5 years you won’t even recognize who you are because your whole life is spent on dealing with this stress

again - this is a mistake - recognize, act, and move on.
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Debt is a tool.

If you have a 6%, mortgage, then yeah, it isn't great.

If you're sitting on a sub 3% mortgage, why even bother paying anything off quickly?

With inflation, the cost to borrow with lower rates basically nothing. The money is better spent in the market.
 
NICMAN said:
I am crying while I play on the worlds tiniest violin.

I am sure there are a lot of Americans who can find “average” housing in an “average” neighborhood and not have to pay $24,000/month. And it costs a lot to raise a kid (or two) that is why a lot of moms have stayed home. Because that kind of work is extremely valuable and NOT cheap.
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OP pays 24k monthly for his mortgage??
 
I kind of get it if in SF/Palo Alto though. That's an expensive area. A 2 million house gets you a shack, and maybe he does need a 3-5 million house just to live in an average/respectable house. It's a lot, but OP may need to just move to North Dakota potentially
 
ToKingdomCome said:
I kind of get it if in SF/Palo Alto though. That's an expensive area. A 2 million house gets you a shack, and maybe he does need a 3-5 million house just to live in an average/respectable house. It's a lot, but OP may need to just move to North Dakota potentially
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how about a happy medium- Suburbs of Boston, Philly, NYC, DC, most state capital cities, and surrounding suburbs? etc.?
 
A normal house around here is 3-4 million at minimum. For example:


I quoted PITI for us which include property taxes, utilities, insurance, repairs. Our net costs so far. In 7 years our 3.7 million dollar house (not the one above, ours is nicer) will be worth 5.4 million if we don't have a recession/housing crash (5% appreciation per year). We leveraged 20% to likely get a net proceed of 2.3 million off a 800,000 "investment". Even more, 500,000 of capital gains is tax free on that gain.

Please tell me how my investment strategy is any different or worse than you living in Indiana and socking away money into VTI???

The problem is mortgage rates and wealth in the area driven by zero interest loans, policies to benefit tech, and fraud by VC/PE. I'm doing the right thing, but every one around me (and in Washington) doesn't play by the rules. That was the purpose of my post. This makes id impossible for attending like myself, just starting out, to make it in this world.
 
We're not only house poor. We are mortgage rate poor (Ala house). We are child care poor. We are poor in every sense of the word poor, which is a shame after the amount of hard work we both have put in. If we can't make it here, who can? Who will provide medical care to some of the stock/RSU wealthiest people in the country??
 
gaspusher said:
A normal house around here is 3-4 million at minimum. For example:


I quoted PITI for us which include property taxes, utilities, insurance, repairs. Our net costs so far. In 7 years our 3.7 million dollar house (not the one above, ours is nicer) will be worth 5.4 million if we don't have a recession/housing crash (5% appreciation per year). We leveraged 20% to likely get a net proceed of 2.3 million off a 800,000 "investment". Even more, 500,000 of capital gains is tax free on that gain.

Please tell me how my investment strategy is any different or worse than you living in Indiana and socking away money into VTI???

The problem is mortgage rates and wealth in the area driven by zero interest loans, policies to benefit tech, and fraud by VC/PE. I'm doing the right thing, but every one around me (and in Washington) doesn't play by the rules. That was the purpose of my post. This makes id impossible for attending like myself, just starting out, to make it in this world.
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It's different in that socking money away here in Indiana, I can cut back anytime I'd like without defaulting on my mortgage. If we want to splurge on a big vacation or nice remodel, it's easy! We'll just save a little less.

I never ever have to worry about money or paying the bills or making sure I have enough money in my account for XYZ. I look at my bank account once a month to shuffle money into different accounts (brokerage, vacation fund, tithing, etc). I usually don't even know which weeks I'm getting paid because of no concern to me.

That sounds like it's pretty different from your "investing strategy". Yours will work too. Mine has less stress and more freedom.
 
Honestly, if there is one thing you can take away from my post, it's this.

What we are creating here in the Bay Area is unsustainable. International hires come in and don't truly know the value of the dollar so they live beyond their means, forcing those not in tech to live to the brink. Take this house for example:


Many tech folks around here have no business paying the housing prices (and neither do physicians for that matter). However, the international tech works utilize their RSUs. The banks will count that as salary. So two middle management tech workers, who for most in this community, did not grow up in the US, stretch beyond their reach. They support the price inflation because they don't understand the value and it's a keeping up with the American Jones as an international immigrant mentality.

The 4.5 million dollar mortgage above is $34,000 a month PITI. This creates the mess around here.
 
gaspusher said:
A normal house around here is 3-4 million at minimum. For example:


I quoted PITI for us which include property taxes, utilities, insurance, repairs. Our net costs so far. In 7 years our 3.7 million dollar house (not the one above, ours is nicer) will be worth 5.4 million if we don't have a recession/housing crash (5% appreciation per year). We leveraged 20% to likely get a net proceed of 2.3 million off a 800,000 "investment". Even more, 500,000 of capital gains is tax free on that gain.

Please tell me how my investment strategy is any different or worse than you living in Indiana and socking away money into VTI???

The problem is mortgage rates and wealth in the area driven by zero interest loans, policies to benefit tech, and fraud by VC/PE. I'm doing the right thing, but every one around me (and in Washington) doesn't play by the rules. That was the purpose of my post. This makes id impossible for attending like myself, just starting out, to make it in this world.
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5% CAGR may be too optimistic, especially starting in 2024–2025. The last 3 years have seen slowing or even declines in many high-end Bay Area zip codes due to tech layoffs and remote work weakening local demand, higher interest rates hurting jumbo loan affordability, outmigration to lower-cost states like Texas, Arizona.

A more conservative forecast might be 2–3% annually.

If appreciation is only 2% annually, value after 7 years ≈4.27M. That’s only a $570k gain, which barely beats inflation after closing costs and taxes.
 
ToKingdomCome said:
I kind of get it if in SF/Palo Alto though. That's an expensive area. A 2 million house gets you a shack, and maybe he does need a 3-5 million house just to live in an average/respectable house. It's a lot, but OP may need to just move to North Dakota potentially
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OP wants a very specific area that he can barely afford.

He might as well complain that he can't buy a Hamptons compound.

There are houses that are 2 million or less in San Jose and other parts of the Bay area that he could easily afford.

If they cut back on the nanny services, that would save over $50k a year.
 
anonperson said:
If they cut back on the nanny services, that would save over $50k a year.
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But then wouldn't the kids be alone at home? Both spouses work.

OP, I feel you; we live in Marin and spent a lot on a house and remodel. We have one more year of paying for pre-K before they go to the local public school. At its worst, our nanny costs were the same as yours. That's just what it costs. Still, our PITI is about half yours, but, to your point, my spouse had some tech money that brought our loan total to a less unreasonable amount. I have colleagues in two-physician households (so clearing a mill a year between the two of them) still complaining. It's like, if you want your kids to have horses in the stable out back, and private schools and all that, yeah, the bay area is going to be humbling. We live pretty modestly, if that can truly be said at our price point (e.g., older cars, vacations in nature instead of Paris), and the truth is, I often feel like I should be saving more than we are. But we really like living here. I think it's a matter of perspective and preference with regard to trade-offs. We all make them; the ones you're making a pretty severe, but you are choosing them.
 
You are under estimating school districts in the Bay Area.... You'd just need to talk to my neighbors for 5 minutes to see what they are willing to spend for a school district that can get their kid into an elite college (or so they think)

"5% CAGR may be too optimistic, especially starting in 2024–2025. The last 3 years have seen slowing or even declines in many high-end Bay Area zip codes due to tech layoffs and remote work weakening local demand, higher interest rates hurting jumbo loan affordability, outmigration to lower-cost states like Texas, Arizona.

A more conservative forecast might be 2–3% annually.

If appreciation is only 2% annually, value after 7 years ≈4.27M. That’s only a $570k gain, which barely beats inflation after closing costs and taxes."
 
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gaspusher said:
You'd just need to talk to my neighbors for 5 minutes to see what they are willing to spend for a school district that can get their kid into an elite college (or so they think)
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This strategy often fails because all their highly motivated classmates with tiger parents are targeting the same schools. From what I have seen, the smart kids coming out of 2nd tier school districts do better.
 
AKMD_1984 said:
a life with debt is not a life of dignity or self respect

again this is not a dignified way to live for you and your family and your post is just a symptom of that

there is a reason almost every decent financial investor recommends paying off your biggest purchase - aka a house as soon as possible

most do it within 10 years to achieve real financial freedom

or buy a house with cash, which i think is still the best way to pay for a house

they don’t play these games of “s/p or this stock pays more compared to interest rate on mortgage or my deduction on interest” etc…

effects of having large debt are psychological and it puts you in a never ending battle where you’re trying to breathe and catch up at the same time

both of these are impossible simultaneously and within 4-5 years you won’t even recognize who you are because your whole life is spent on dealing with this stress

again - this is a mistake - recognize, act, and move on.
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If interest rates are lower than stock market returns, buying a house with cash is the worst way to buy a house. The second worst way is to overpay and quickly build up home equity. The cost of housing gets worse and worse the more home equity you have after accounting for the opportunity cost of tying up money in a house.
 
cchoukal said:
But then wouldn't the kids be alone at home? Both spouses work.

OP, I feel you; we live in Marin and spent a lot on a house and remodel. We have one more year of paying for pre-K before they go to the local public school. At its worst, our nanny costs were the same as yours. That's just what it costs. Still, our PITI is about half yours, but, to your point, my spouse had some tech money that brought our loan total to a less unreasonable amount. I have colleagues in two-physician households (so clearing a mill a year between the two of them) still complaining. It's like, if you want your kids to have horses in the stable out back, and private schools and all that, yeah, the bay area is going to be humbling. We live pretty modestly, if that can truly be said at our price point (e.g., older cars, vacations in nature instead of Paris), and the truth is, I often feel like I should be saving more than we are. But we really like living here. I think it's a matter of perspective and preference with regard to trade-offs. We all make them; the ones you're making a pretty severe, but you are choosing them.
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Just be fortunate that the H1B Visas have not made their way up to Marin because the commute is too long, or you'd be looking at housing prices as they are here. It could be a lot worse, trust me.
 
gaspusher said:
A normal house around here is 3-4 million at minimum. For example:


I quoted PITI for us which include property taxes, utilities, insurance, repairs. Our net costs so far. In 7 years our 3.7 million dollar house (not the one above, ours is nicer) will be worth 5.4 million if we don't have a recession/housing crash (5% appreciation per year). We leveraged 20% to likely get a net proceed of 2.3 million off a 800,000 "investment". Even more, 500,000 of capital gains is tax free on that gain.

Please tell me how my investment strategy is any different or worse than you living in Indiana and socking away money into VTI???

The problem is mortgage rates and wealth in the area driven by zero interest loans, policies to benefit tech, and fraud by VC/PE. I'm doing the right thing, but every one around me (and in Washington) doesn't play by the rules. That was the purpose of my post. This makes id impossible for attending like myself, just starting out, to make it in this world.
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That’s a $450,000 house here in Oklahoma. Your problems are your own doing. Your options are to invent a billion dollar app, get a divorce, or move somewhere different. Literally anywhere different.
 
gaspusher said:
We're not only house poor. We are mortgage rate poor (Ala house). We are child care poor. We are poor in every sense of the word poor, which is a shame after the amount of hard work we both have put in. If we can't make it here, who can? Who will provide medical care to some of the stock/RSU wealthiest people in the country??
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You aren’t poor. You are living outside your means and the easiest fix is your house. Buying a 7 figure house with a a high mortgage rate is a double whammy. But it’s the same dumb move as people that max out credit cards with 20 percent interest on them. It’s the exact opposite of a wealth building move. The problem is you aren’t a top one percenter and you never will be but you want to live like one. Thinking you could do that as a doctor was the first of many mistakes.
 
gaspusher said:
I quoted PITI for us which include property taxes, utilities, insurance, repairs. Our net costs so far. In 7 years our 3.7 million dollar house (not the one above, ours is nicer) will be worth 5.4 million if we don't have a recession/housing crash (5% appreciation per year). We leveraged 20% to likely get a net proceed of 2.3 million off a 800,000 "investment". Even more, 500,000 of capital gains is tax free on that gain.

Please tell me how my investment strategy is any different or worse than you living in Indiana and socking away money into VTI???
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You’re paying nearly 7 % interest to get that 5% gain. Even with tax deductions that’s a wash. Then you’ll get to give 6% of the sale price to a realtor.

Meanwhile that VTI is giving you 12% rate of return. It’s a massive amount of money.
 
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Sell the house and move and eliminate any risk of being underwater if prices lag or go down. You’re not only playing with fire, you’re dancing in the conflagration while whining about not be able to get ahead.
 
Bro, you sound a bit delusional. You want it all. You want the nice 5M house with private school tuition and nannies in the most expensive region in the country as an anesthesiologist and save enough to retire at 50.

But we are not reason we live in the most expensive region. We are just service workers. If you want to be the big dogs, move elsewhere
 
gaspusher said:
A normal house around here is 3-4 million at minimum. For example:


I quoted PITI for us which include property taxes, utilities, insurance, repairs. Our net costs so far. In 7 years our 3.7 million dollar house (not the one above, ours is nicer) will be worth 5.4 million if we don't have a recession/housing crash (5% appreciation per year). We leveraged 20% to likely get a net proceed of 2.3 million off a 800,000 "investment". Even more, 500,000 of capital gains is tax free on that gain.

Please tell me how my investment strategy is any different or worse than you living in Indiana and socking away money into VTI???

The problem is mortgage rates and wealth in the area driven by zero interest loans, policies to benefit tech, and fraud by VC/PE. I'm doing the right thing, but every one around me (and in Washington) doesn't play by the rules. That was the purpose of my post. This makes id impossible for attending like myself, just starting out, to make it in this world.
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So move out of California, or at the very least move out of this location which you clearly can not afford. It's insane to think that just.because an average house in that area costs 3-4 million means that you can just inherently afford to live there. I will be the reality check that you so desperately need. No, you can not afford to live there. You are close to the top 1% of earners in the united states, but you are effectively poor. There is no reason for this aside from personal choices. Choose to live somewhere else that you can actually afford and you will live a much better and stress free life.
 
Rent a house dude. Watch your savings grow. Suddenly you’ll be able to afford to live there if it’s that important to you. It’s the greatest.
 
At some point your stuff begins to own you… not the other way around.

You’re right. This country has f—- ed principles. They pay millions of dollars to people that play with balls while police and fire fighters struggle to pay the bills. Teachers can barely scrape by…. Kim Kardashian shouldn’t make more than any of us doctors…. but she does. America is an f’ed up system. 100% right - unfortunately it’s still the best game in town for all of us… for now.

Someone on here long ago told all of us to have a 100,000$ f u account (although in today’s dollars that probably needs to be double that)…. So you didn’t need to stay in a ****ty job. That was good advice.

The point of money is to bring happiness and security - nothing else. Buy stuff you can own…. Not so much stuff that you have to work like a dog forever. Just my opinion
 
A 3.5 million dollar home should never be anyone’s first home. Never

It’s more like a 3rd or even 4th home for most rich doctors who are in their mid 40s or even 50s.

My first home was 600k starter townhouse in high cost living in north east. 3 bed/2 bath 2400 square 25 miles from the city core. I had to commute 45 min sometimes 1 hr with traffic into downtown to work. A downtown townhouse the same or similar as the one I purchased cost 1 million and 50 years old. And this was 2005. I made 270k in 2005.

My interest rate was 6% at the time also. So don’t complaint interest rates are so high in 2025. They were very similar in 2005 as well. Just google it what the average interest rates was during that time

If you are making close to combined 900k gross. You should not be buying a 3.5 million dollar home. Max is 3x your gross income. 2.7 million.
 
cchoukal said:
But then wouldn't the kids be alone at home? Both spouses work.
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How much does the spouse earn? It doesn't seem like it's enough to comfortably live in the Bay Area even though OP states he is making $700k.

Regardless, they are house poor. Barring any major health disasters, they can make it work since medicine is so stable.

Plus, OP even states they are saving for retirement.

But this is the life they want. He could easily afford a $2 million house with money left over.

Could move to San Jose, Santa Clara and find a cheaper house in a good area.

I'm in Southern California.. This is no different than a doc complaining they can't live in Malibu easily in a huge house.
 
gaspusher said:
We're not only house poor. We are mortgage rate poor (Ala house). We are child care poor. We are poor in every sense of the word poor, which is a shame after the amount of hard work we both have put in.
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What we don't get is why you made this decision.

gaspusher said:
If we can't make it here, who can?
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Commuters.

People who bought their homes 20-30 years ago.

gaspusher said:
Who will provide medical care to some of the stock/RSU wealthiest people in the country??
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People like you, who for some reason value living in that tiny specific location more than you value anything else.



gaspusher said:
Please tell me how my investment strategy is any different or worse than you living in Indiana and socking away money into VTI???
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Well for starters, sane people never consider the home they live in as an investment. It sometimes (even often) turns out that homes end up being a person's best investment, but this is not a reason to go all-in (as you have) on ONE bit of residential real estate.


VTI is extremely diversified. That one single bit of real estate you live in is the polar opposite of diversified.

VTI is extremely liquid. That house is not.

VTI doesn't demand you put half (or more) of your income into it every month.

Nobody is going to take your VTI away if you quit throwing more money at it.

Beyond PITI homes consume resources, often in unpredictable large lump sums (maintenance), and produce no income. VTI is made of companies that produce goods and services for profit, with real revenue.

VTI isn't going to charge you massive transaction fees when you sell it, nor will you be obligated to sell 100% of VTI at a time.



Sell the house. GTFO of that place. There are a thousand GREAT places to live in this country that aren't rural Indiana. You posted about this 6 months ago and we all told you the same thing. Are you going to post again in 6 months with the same worries?

You're obviously stressed and miserable. Make a change.
 
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triggermaster said:
If interest rates are lower than stock market returns, buying a house with cash is the worst way to buy a house. The second worst way is to overpay and quickly build up home equity. The cost of housing gets worse and worse the more home equity you have after accounting for the opportunity cost of tying up money in a house.
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1. personal finance is not a math only issue or only on paper. it’s a behavioral issue. debt means you are letting others have leverage over you.

2. once the house is paid off, one can focus on absolutely creating wealth without a need for payment.

3. paid off house will still appreciate. in fact purchasing real estate on cash means you are already able to negotiate better and often knock off major price off the listed tag because there is no bank involved for financing. i recently bought an office building listed for 520k for cash at 315k. best purchase of my life. no mortgage. no bank. i offered cash and made a take it or leave it offer. i’m never going to get a note on anything. zero transaction costs - the whole experience was amazing. i controlled everything. it’s true money talks bull**** walks.

4. the purpose of mortgage is to actually pay off the loan. be it 30 years or 15.

5. walking on grass in the yard feels different when you own your house outright.
 
anonperson said:
Debt is a tool.

If you have a 6%, mortgage, then yeah, it isn't great.

If you're sitting on a sub 3% mortgage, why even bother paying anything off quickly?

With inflation, the cost to borrow with lower rates basically nothing. The money is better spent in the market.
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you’re underestimating the psychological impact and decision making when one carries debt and overestimating one’s discipline and ability to continuously invest the difference.

multiple studies have been done on this.

secondly 3% interest rates are no longer available.

thirdly, decision to buy a house is not only dependent on interest rate. it depends on location, children, family. it’s really not a financial investment - it’s a place to build a life and it’s a tangible asset. you cannot compare it to an s/p index fund.
 
AKMD_1984 said:
1. personal finance is not a math only issue or only on paper. it’s a behavioral issue. debt means you are letting others have leverage over you.

2. once the house is paid off, one can focus on absolutely creating wealth without a need for payment.

3. paid off house will still appreciate. in fact purchasing real estate on cash means you are already able to negotiate better and often knock off major price off the listed tag because there is no bank involved for financing. i recently bought an office building listed for 520k for cash at 315k. best purchase of my life. no mortgage. no bank. i offered cash and made a take it or leave it offer. i’m never going to get a note on anything. zero transaction costs - the whole experience was amazing. i controlled everything. it’s true money talks bull**** walks.

4. the purpose of mortgage is to actually pay off the loan. be it 30 years or 15.

5. walking on grass in the yard feels different when you own your house outright.
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Sure personal finance isn’t only math, but people should do the math so they know how much it’s costing them to walk on grass they own.

The feeling of having something break in a rental house and not having to deal with it or pay for it feels amazing, maybe even as good as your lawn.
 
triggermaster said:
Sure personal finance isn’t only math, but people should do the math so they know how much it’s costing them to walk on grass they own.

The feeling of having something break in a rental house and not having to deal with it or pay for it feels amazing, maybe even as good as your lawn.
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Anyway, my point wasn’t to debate home ownership vs renting. The OP can’t afford to buy where he wants to live and the rent/buy calculator in his area strongly favors rent. That’s the point I wanted to make.
 
triggermaster said:
Sure personal finance isn’t only math, but people should do the math so they know how much it’s costing them to walk on grass they own.

The feeling of having something break in a rental house and not having to deal with it or pay for it feels amazing, maybe even as good as your lawn.
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it seems we value different things and in different phases of life and wealth.

good luck to you
 
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It's easy to think anesthesiologists should be able to afford whatever. Here's one in the New York Times looking for a Hamptons second home with a 4 million dollar budget.
www.nytimes.com

A ‘New Lease on Life’ Leads to a New House in the Hamptons (Published 2023)

Following a cancer scare, a doctor aimed to expand her Manhattan practice into Long Island. First, she needed a home base. Here’s what her $4 million budget got her.
www.nytimes.com www.nytimes.com
 
I do have a question for the OP

1. How far away is your commute from your house to your job?

2. How far away is your wife commute from the house to her job?

If it’s more than 20 minutes away. You have no business buying a home like that.

I could understand if the hospital was 3-4 miles away and u can be home in 10 min. That may make sense paying a premium like that

But if you are commuting 20-30 min plus paying a premium to live there. That’s insane.

And I see from your statements. You are so set on your kid (soon to be kids) trying to get into elite colleges already and one kid is like less than 5 years old. Those are extremely high expectations.

Are you gonna to send your kid to elementary private school as well?
 
gaspusher said:
We're not only house poor. We are mortgage rate poor (Ala house). We are child care poor. We are poor in every sense of the word poor, which is a shame after the amount of hard work we both have put in. If we can't make it here, who can? Who will provide medical care to some of the stock/RSU wealthiest people in the country??
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Bro, you are absolutely NOT poor. You have a flipping nanny. Your pity party is tiresome at this point.
 
mmag said:
It's easy to think anesthesiologists should be able to afford whatever. Here's one in the New York Times looking for a Hamptons second home with a 4 million dollar budget.
www.nytimes.com

A ‘New Lease on Life’ Leads to a New House in the Hamptons (Published 2023)

Following a cancer scare, a doctor aimed to expand her Manhattan practice into Long Island. First, she needed a home base. Here’s what her $4 million budget got her.
www.nytimes.com www.nytimes.com
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She owns her own business. That’s the huge difference between her and the OP

I’m sure she’s netting over 1, maybe 2 million in her pain practice if she owns it a year. So she’s branched out to medispa

You the women spending $$$ on Botox, lip fillers, micro blading , chemical peelings crap. Before you know it. These women can spend easily $1000 a month to look good at the medispa.
 
AKMD_1984 said:
you’re underestimating the psychological impact and decision making when one carries debt and overestimating one’s discipline and ability to continuously invest the difference.

multiple studies have been done on this.

secondly 3% interest rates are no longer available.

thirdly, decision to buy a house is not only dependent on interest rate. it depends on location, children, family. it’s really not a financial investment - it’s a place to build a life and it’s a tangible asset. you cannot compare it to an s/p index fund.
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You're the one who said all mortgages are bad.

I disagree.

I'm pointing out that some debt is fine. It can be used to build wealth/achieve home ownership and increase liquidity. It worked for me and I'm an average physician with an average salary.

I'm all for buying a house but OP obviously cannot afford his lifestyle. House is too expensive and the extras, like nanny, is bleeding him slowly.
 
AKMD_1984 said:
1. personal finance is not a math only issue or only on paper. it’s a behavioral issue. debt means you are letting others have leverage over you.

2. once the house is paid off, one can focus on absolutely creating wealth without a need for payment.

3. paid off house will still appreciate. in fact purchasing real estate on cash means you are already able to negotiate better and often knock off major price off the listed tag because there is no bank involved for financing. i recently bought an office building listed for 520k for cash at 315k. best purchase of my life. no mortgage. no bank. i offered cash and made a take it or leave it offer. i’m never going to get a note on anything. zero transaction costs - the whole experience was amazing. i controlled everything. it’s true money talks bull**** walks.

4. the purpose of mortgage is to actually pay off the loan. be it 30 years or 15.

5. walking on grass in the yard feels different when you own your house outright.
Click to expand...

We have a 30 year mortgage at 2.5%. Total monthly payment is about $3K.

I will N E V E R make an early payment on that. We put 5% down. I wish that was less.

We owned our last house outright. I prefer this because I know that loan is nearly free money that can be better invested elsewhere.
 
anonperson said:
You're the one who said all mortgages are bad.

I disagree.

I'm pointing out that some debt is fine. It can be used to build wealth/achieve home ownership and increase liquidity. It worked for me and I'm an average physician with an average salary.

I'm all for buying a house but OP obviously cannot afford his lifestyle. House is too expensive and the extras, like nanny, is bleeding him slowly.
Click to expand...
remind me - do those who pay cash for their house and dont have a note - ever face foreclosure?
 
AKMD_1984 said:
remind me - do those who pay cash for their house and dont have a note - ever face foreclosure?
Click to expand...

No.

But what physician is in that dire straits that this will even happen? Very uncommon and you know it. OP has just massively overextended themselves.

Besides, even if you own the house outright, you still have property taxes you have to pay.

I pay mine separately from my mortgage and it's painful to cut a check for $12k a year. That is perpetual.

And that's even worse in Texas, Illinois etc
 
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