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Buying our first house

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  • White.Beard.Doc
    replied
    For us, owning a house is fun with our large, productive garden.  The big excitement this spring is the addition of backyard chickens.  It should be interesting to have chickens in our upscale neighborhood.  We are planning to share the blue eggs with our neighbors, so hopefully that will keep the peace and contribute to neighborly approval.  At least we won't be getting a rooster.

    Best of luck to you with your new house plans, the affordability numbers look good.

    One question, will one of you be a stay at home parent or do you plan to hire an au pair or something?  Planning ahead for childcare and income changes can be helpful.  One other consideration, you might want to consider a 30 year mortgage to allow flexibility of monthly payments.  You could pay extra if you want with both of you working, then slow down a bit when childcare expenses are higher, then ramp up again when able.

    Although we paid down mortgages ahead of schedule, having the flexibility of a lower payment on a 30 year when needed was nice.  We liked the option of paying more, but not being required to do so every month in the early years when we were on one income.  And the interest rate was only slightly higher for the 30 year so adding the flexibility didn't add much to the interest costs because we ended up paying it down ahead of time.

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  • adventure
    replied




    Thanks. To be honest the 5-7 year was ballpark. Both wife and I are very happy with jobs and city we live in. We have no thoughts of moving in the near future unless something unexpected occurs.
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    Make sure it is in a school district you would want to send your kids to.
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    Yeah, will the kids like the house? (aka, will they like the schools, neighborhood, soccer leagues, parks, street to ride a bicycle, other kids nearby, yards for the dog to sniff)?

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  • resident_1
    replied
    Make sure it is in a school district you would want to send your kids to.

     

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  • MPMD
    replied




    There should be a yellow sticky thread pinned to the top of the forum that says, “If you have to ask if you can/should/could buy a house, the answer is no.”

    However, in this case, the answer is not no.
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    Yeah I do wonder a little bit about some of these home buying threads. Seems like the answers are pretty predictable.

     

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  • I Find This Humerus
    replied
    Why not get a doctor's loan and put the 20% you saved up into an ETF? Over 30 years you would earn more money from the ETF than you lost by have a higher mortgage interest rate.

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  • treesrock
    replied
    You have done things correctly and can certainly afford the home, so if you love it, good luck with the purchase!

    One word of warning, DW and I are in a similar boat, about the same age, both physicians in the same institution, and we bought a home ~1.5 years ago.  We love the house and don't regret it one bit, but home ownership is a PITA.  Next month a foundation company is coming out to fix a wall that is sinking into the floorboards and causing cracks in the door frames.  So that's awesome.....  $6k into the local economy I guess.

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  • JBME
    replied
    you'll be fine with that mortgage and those property taxes. And given you like your jobs and where you live, you might want to consider this house your permanent house. Also, how important is FI to you? Some here aim to be FI in their 40s, others in their 50s. If you like your jobs and lives as much as you say, then perhaps not getting there until you're in your 50s is fine. And this house with those incomes will hardly put you back. But yes-also think about if one of you is going to cut back once a child or two is born. Daycare costs are really high in general (but usually not so much that it makes sense to quit your job, at least based on the incomes of people on this site) but it's a personal choice

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  • Wcinewdoc
    replied
    Thanks. To be honest the 5-7 year was ballpark. Both wife and I are very happy with jobs and city we live in. We have no thoughts of moving in the near future unless something unexpected occurs.

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  • FIREshrink
    replied
    Easily affordable. However, the 5-7 year time frame is a red flag for me. If you're not planning on staying in the house a minimum of seven years (some experts suggest ten years), you should rent instead of buy. Costs of ownership are substantial as are the round trip buy and sell costs.

    Leave a comment:


  • VagabondMD
    replied
    There should be a yellow sticky thread pinned to the top of the forum that says, "If you have to ask if you can/should/could buy a house, the answer is no."

    However, in this case, the answer is not no.

    Leave a comment:


  • jhwkr542
    replied
    Go for it.

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  • Wcinewdoc
    replied
    Property tax is ~7-8k yearly.

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  • JBME
    replied
    A $624k mortgage seems totally doable to me. Have you researched to see what the property taxes on such a house would be? I'd get a fixed 15-year and see what the monthly payment would be. Especially since you still don't have kids, if they're not coming for another 2-3 years, you could throw a lot of extra $$$ at the principal the first year you are in the house, and that would seriously diminish how much you end up paying in interest overall, given that how mortgages work is initially most of your payment goes towards interest.

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  • Rando
    replied
    You are the poster child for doing things the right way.  I'd say buy the house.  The only caveat would be if one spouse is anticipated to be without an income for an extended time due to the kids that would put you in a crunch.

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  • startupdoc
    replied
    You have no debt and max out retirement accounts (assuming you also do backdoor roths). You saved a good down payment and can get a conventional mortgage with a good rate. Your mortgage would be ~620k. Your combined salary is 410k. That is a mortgage well within 2x income (you can easily stretch to 3x income). You have done your research and know the ins and outs of the city you live in quite well. You are very likely committed to being there long-term because you seem to be job-stable.

    Assuming you are socially stable with your marriage, I don't think anyone here will tell you not to buy this house. One caveat: If this is truly you're "permanent" or "forever" house, you can consider (and easily afford) a more expensive house - if you so desire.

    Leave a comment:

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