Will you buy this ?

[nastle]

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

[CordMcNally]

Isn’t it worth what someone will pay?

[WorkforFIRE]

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

[zlandar]

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

[nastle]

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

20k debt
income 300k
attending approx 10 yrs

[nastle]

Isn’t it worth what someone will pay?

Sorry
not sure if I follow

[jhwkr542]

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

[Kamban]

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.

[nephron]

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.

[cards67]

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

[CordMcNally]

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.

[StateOfMyHead]

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.

[Larry Ragman]

Or, you could rent…

[mamaham]

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...

[CordMcNally]

Or, you could rent…

You mean throw money away…?