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  • Will you buy this ?

    600k house
    approx 140k overpriced per precovid numbers
    its exactly the house you want
    you need a house now as family needs it
    you can get low interest 30 yr mortgage with 5% down
    Your extended family is close by and stable job so no plan to move anytime soon
    excellent schools
    safe area

    biggest con is its a hot market you will be upside down 140 k instantly

    if you wait no guarantees such a house will come up and interest rate likely go up ( maybe prices too ) plus renting and subsequent moving has its own costs

  • #2
    Isn’t it worth what someone will pay?

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    • #3
      Need more info. Household income. Current debt.
      resident? Attending? How long practicing?

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      • #4
        Yes. I get the value has gone up a lot but it fits your needs.

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        • #5
          Originally posted by WorkforFIRE View Post
          Need more info. Household income. Current debt.
          resident? Attending? How long practicing?
          20k debt
          income 300k
          attending approx 10 yrs

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          • #6
            Originally posted by CordMcNally View Post
            Isn’t it worth what someone will pay?
            Sorry
            not sure if I follow

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            • #7
              Yes. The value of my house currently isn't what it was when I bought it. It's worth what the current market is.

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              • #8
                Originally posted by nastle View Post

                20k debt
                income 300k
                attending approx 10 yrs
                Why the debt 10 years being attending? Low cost car loan? Student loan?

                How is net worth and track to retirement / FI

                Fed is increasing interest rates. So the housing values might decline but your payments will go up.

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                • #9
                  The house is worth 600 K if either you or someone else is willing to pay 600K for it. If you don't buy it and someone else does for that price, it was worth 600 K when it was sold. 600K is obviously a reasonable amount to pay for your house based upon your salary. I wouldn't focus on the previous price. For all you know, it could be appraised for 800 K in a few years. On average, home prices increase. The 2008 housing crisis was a very unusual situation.

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                  • #10
                    It is what it is. If your family needs it, what other option do you have? You can still easily afford it.

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                    • #11
                      Originally posted by nastle View Post

                      Sorry
                      not sure if I follow
                      If it takes $600k to buy that house then the house is worth $600k. You wouldn’t automatically be upside down $140k.

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                      • #12
                        I appreciate your line of thinking because things are overpriced right now and I feel it is wise to view your residence as an investment. In this example all the boxes are checked. I would do it and just accept that it is possible you are paying a 24% premium to get exactly what you want. You might also be pleasantly surprised and see it increase in value if you stay there for a while.

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                        • #13
                          Or, you could rent…

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                          • #14
                            I felt the same way when I bought a house 3 years ago.... I felt like we were at the top of another bubble and felt like we were overpaying. Now, 3 years later the home has increased 50+%. the point is you can't time the market. you can afford it so go ahead. get rid of the 20k debt though and put more than 5% down...

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                            • #15
                              Originally posted by Larry Ragman View Post
                              Or, you could rent…
                              You mean throw money away…?

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