Shall I buy?

[uksho]

Thank you for the advice .

[Auric goldfinger]

Skip the private schools and buy the house. 40-60k and non-negotiable? That’s what I paid for Stanford for my oldest son ( who went to public schools)

[uksho]

Skip the private schools and buy the house. 40-60k and non-negotiable? That’s what I paid for Stanford for my oldest son ( who went to public schools)

appreciate your advice

It’s for 2 kids.
rather live in the same or cheaper house than send to public ( don’t mean to offend anyone sending to public )
we are not in a place with greatest public schools

question is : can I afford the house with pvt schools

[Auric goldfinger]

Affordability shouldn’t force your hand, nor should fear of missing out. I sound like a broken record on this site, but my old bones and experience say that now is not the time. Patience. I’ve seen this movie many times and I know the ending

[uksho]

Affordability shouldn’t force your hand, nor should fear of missing out. I sound like a broken record on this site, but my old bones and experience say that now is not the time. Patience. I’ve seen this movie many times and I know the ending

Thank you , yes , that’s what I fear . And have been waiting till now
If I pay 100 K above , likely I am getting the same for my current house . The other part of my brain says to wait . It is a Dilemma, which has been bothering us.

[Dont_know_mind]

Thank you , yes , that’s what I fear . And have been waiting till now
If I pay 100 K above , likely I am getting the same for my current house . The other part of my brain says to wait . It is a Dilemma, which has been bothering us.

Can you renovate or add rooms to your current house?

It sounds like you are short 1/2 or 1/3 a house, but not as much as someone who doesn't have a house.

I guess with the future path of house prices in the future, no one knows. The best time to upgrade is during a recession and the last one was in 2020. I guess there could be another one in the next 2 years, but who knows, it could be in 5, 10 or 15 years. The longest period between recessions of any OECD country in the post-war period is 28 years. I guess it is also within the realm of possibility that house prices could also decline without a recession.

[uksho]

Can you renovate or add rooms to your current house?

It sounds like you are short 1/2 or 1/3 a house, but not as much as someone who doesn't have a house.

I guess with the future path of house prices in the future, no one knows. The best time to upgrade is during a recession and the last one was in 2020. I guess there could be another one in the next 2 years, but who knows, it could be in 5, 10 or 15 years. The longest period between recessions of any OECD country in the post-war period is 28 years. I guess it is also within the realm of possibility that house prices could also decline without a recession.

The lot size is very small in current house with no possibility of adding anything.

[Dont_know_mind]

The lot size is very small in current house with no possibility of adding anything.

That's a difficult situation.
I was short a house or half one in 2011-2015. It was very painful.
I had this delusional idea that there was a recession around the corner.
I eventually capitulated and bought a house for 2.4m in 2016, that I could have bought for 1.5m in 2011.
Worse was the psychological impact of being short housing when your kids need it, your spouse wants it and you can afford it.

It worked out ok in the end. There was a recession in 2020, but the house is now worth 3.5m probably.
I am just glad I'm not short anymore.
Being short housing during a housing boom in our area, I was like the black knight in that Monty Python skit.
If you capitulate before a recession, it will be like eating dog turd sandwich but you'll survive.
Murphy's law, it will crater 30% just after you buy.

My wife sometimes reminds me about it. I just say, yeah, I made a mistake, sorry, I'll listen to you next time.
Sometimes we have to pay to learn.
I learnt that I can be very wrong when I think I'm really right.

https://www.youtube.com/watch?v=ZmInkxbvlCs

(tis but a scratch)

[Dont_know_mind]

That skit is great and the comments too:
John Cleese wrote this scene because he hated the saying "you never truly lose until you give up".
"Alright, we’ll call it a draw!”

Those days when I was short the housing market were dark days. I hope you fare better. Good luck!

[Hatton]

In my experience homes do not always go up in value. That being said the home you are talking about is affordable if you think your job is stable.

[wideopenspaces]

I was on board until I saw the private school expenses, that is a lot on your income. Especially once your kids hit expensive teen years with braces and car insurance. How much will you put down on the house and does the 4k/month include property taxes and insurance? Can you continue putting 80k to retirement with the new house? I don't think it's an issue to buy in this market since you are also selling at the same time. I think you should be prepared for things to feel tight for a few years when the kids are a little older but if you're OK with that it won't hurt your financial stability to buy now.

[uksho]

I was on board until I saw the private school expenses, that is a lot on your income. Especially once your kids hit expensive teen years with braces and car insurance. How much will you put down on the house and does the 4k/month include property taxes and insurance? Can you continue putting 80k to retirement with the new house? I don't think it's an issue to buy in this market since you are also selling at the same time. I think you should be prepared for things to feel tight for a few years when the kids are a little older but if you're OK with that it won't hurt your financial stability to buy now.

Actually , it’s more like 3.5 K with mortgage and insurance. I put 4K due to increase in utility and pool costs . This is after we put 15 percent down now and 400 K after selling our current house .


Yes, we will continue to put 80 K towards retirement apart from pension contributions .

the concerns you have raised also are my concerns , but also there is no point upgrading after 6-7 years when the older one is out .

[artemis]

the concerns you have raised also are my concerns , but also there is no point upgrading after 6-7 years when the older one is out .

In that case, you might ask yourselves if there is any point in upgrading at all. 6-7 years will go by quickly, and you might appreciate the smaller house more as you age. Just something to think about.

[uksho]

In that case, you might ask yourselves if there is any point in upgrading at all. 6-7 years will go by quickly, and you might appreciate the smaller house more as you age. Just something to think about.

Thanks, to give you context current house: 2000sq feet, 2 floors , 2 garage
potential offer : 3700 sq feet, one floor , 3 garage
more importantly, spouse wants to upgrade .

[Lordosis]

Thanks, to give you context current house: 2000sq feet, 2 floors , 2 garage
potential offer : 3700 sq feet, one floor , 3 garage
more importantly, spouse wants to upgrade .

There is the answer...