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assuming ballpark 450k household income?
is 7-800k realistic?
thanks
is 7-800k realistic?
thanks
assuming ballpark 450k household income?
is 7-800k realistic?
thanks
It's like answering the boards.... If this... then that.
What happens if this... and what happens if that? What is your risk tolerance? How solid is your group and are you a full partner?
Slavin, it's a great time to buy a long term home.
2.5%, even on a second home, is very doable. That is what the market has been giving us and I think we should take it if the circumstances are right.
Once you get in though, you are in for a while or you are going to take a loss if you get out in the short term (less than 4-5 years... although I see a big up potential in the real estate market and living in the home of your choice does have value). That's how it goes. If you don't have time (not a partner, sketchy group), then don' t go all in.
I've seen several other anesthesiologist go through this (800K+ house) and loose big time. My first house cost me 260K. I'm debt free and my home was bought originally for 365K during the height of the housing depression.
If you research and do your do diligence, you can profit from these deflated prices. Values really picked up after Nov/2012ish in certain areas... good deals are still plentiful though (AZ, FL... CA is picking up fast).
My second property this year is up 14% since I bought it (based on recent state appraisals). It's been a good investment, but it could (or can) have gone down as well.
If you are sure you are where you want to be and your employment conditions are right, then do it. Its like the stock market... the long term should be good (especially in this real estate market).
Otherwise, get out of the whole, get some FU stash and find that perfect job before you settle in.
Cheers.![]()
thanks for the replies.
it is quite like a "choose your own adventure" book - if this, then turn to pg 34...
i've isolated my debt to a 150k student loan that was consolidated at a super low apr - ie it's essentially a free loan that i probably won't try to pay off early.
i live a modest life - i still live like a resident in most regards.
i'm starting a new job this summer - so i wouldn't really consider buying for at least another year. it's my dream job in a great location for me and i'm fairly secure that i will make partner, so i'm in for the long term (but nothing in this world is certain).
it's tough to figure out where to start - i'm sure the bank will approve me for more than i actually want to spend. i still want to have enough left over to add to my FU fund etc...
my best guess is that a 7-800k house would represent a modest house investment in keeping with eggs in separate baskets, but this is my first time...
i appreciate hearing your experiences and reasoning.
assuming ballpark 450k household income? is 7-800k realistic?
FYI. There are very few "good deals" left in Florida AZ CA. The bottom for those market was late 2010/early 2011.
What do you guys think about Doctor's loans? I am on a market for a primary residence within a year in LA, CA. I am a w2 employee and my accountant tells me to put as little down as possible to take advantage of max tax deductions. My research show that doctors loans end up .25- .5 higher interest. Any advice on this?
I don't want to rain on your parade but here are my three cents:
1. Down payment- 20-30% at a minimum.
2. Debt in other areas? What are those payments?
3. Home upkeep can be pretty expensive: electric, insurance, lawn, cable, ?Gas, etc
4. Replacement costs: Roof?, A/C? Appliances? Flooring? New kitchen?
5. Save it then spend it
If I could convince you to spend no more than 1.5 X your income then please listen to me. I prefer 1 X income for your first home so you have extra cash available to pay down debt, save, invest and build the BIG F U account.
But, yes, there is a but, If you find a home which cost 30-50% more during the boom years in a great location then maybe getting a 30 year mortgage at 3% interest rate is indeed a wise move.
I assume you are in a stable job or a full partner. The decision is yours.
It's unfortunate, because I feel that I will miss out on a great time to buy. I am only a year into practice, but I am already a partner in a stable group and I live in a very desirable part of the country. Unfortunately, I have a sizable amount of debt, and it requires a substantial amount of money to buy (a condo!) here. It would cost me 2-3x my yearly income. The flipside is that the real estate market here is traditionally strong and I'm sure if I could swing it it would end up being a great investment in the long term. Just can't quite do it at this stage.
assuming ballpark 450k household income?
is 7-800k realistic?
thanks
Are you guys smoking crack?
The mortgage on an 800k house will be around 15% of your take home pay.
That's a conservative purchase not becoming house poor.
Are you guys smoking crack?
The mortgage on an 800k house will be around 15% of your take home pay.
That's a conservative purchase not becoming house poor.
Are you guys smoking crack?
The mortgage on an 800k house will be around 15% of your take home pay.
That's a conservative purchase not becoming house poor.
What do you guys think about Doctor's loans? I am on a market for a primary residence within a year in LA, CA. I am a w2 employee and my accountant tells me to put as little down as possible to take advantage of max tax deductions. My research show that doctors loans end up .25- .5 higher interest. Any advice on this?
First of all, congrats on landing a $450k gig........those are damn near extinct. That is unless household income = your $300k job plus your significant other's $150k income. Anyway, don't spend that much. Don't be house poor. Salaries WILL be plummeting - expect the new norm to be $225-$250k per annum.
Why would you want to pay interest on money you don't need to borrow. That's throwing away 3.5% a year on 160k (20%). $5600 going to the bank manager's beach house instead of your retirement accounts.
If you can't afford a down payment and still have a reasonable emergency fund/FY acct, maybe it's not time to buy a big house. Though buying a smaller house and planning on flipping it in a few years may not be a good idea either after all the fees and taxes, etc.
I just paid down my mortgage by an extra 70k this month because I could. I'm paying that loan down asap. I saved up some cash, and that's the best place for it. If I could guarantee 5+% in a 3 or 5 year jumbo CD like the old days, that would obviously be a better investment, for me anyway.
You know what's better than getting a mortgage interest deduction?
Not paying a mortgage at all.👍
First of all, congrats on landing a $450k gig........those are damn near extinct. That is unless household income = your $300k job plus your significant other's $150k income. Anyway, don't spend that much. Don't be house poor. Salaries WILL be plummeting - expect the new norm to be $225-$250k per annum.
3.5% isn't interest. It's roughly free use of the money.
After your mortgage interest deduction it's a little over 2%. That is using money at or below the rate of inflation. Over time that loan may actually be profitable when corrected for inflation.
There are a lot of costs in home ownership, but these days interest is a insignificant one when adjusted for inflation.
are you an anesthesiologist? or an ICU nurse practictioner?
just curious about your perspective...
It's not free use of money at all. The price of the asset is inflated by the historically low interest rate; and it's a loser unless home prices are further inflating. The winner in the bet is the one who will walk away from a loss and let someone else cover the downside.