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Dear WCI and forum readers,
I am a newly graduated attending and I plan to purchase our first house. I hope you can give me your opinions. This is a question of what to buy, and not a question of rent vs. buy.
I have a husband and no children. We have no debt, are maxing out our retirement accounts, and have about 300k in saving in a 1% high yield saving account. Now that I am more familiar with low ER index funds, we plan to slowly roll our savings into an equity portfolio, perhaps at a rate of 5k a month, instead of just dumping everything in at once in case the market crashes (is that a good idea?). We have two options in purchasing a home:
1) Buy a 300k new house which is more than big and comfortable enough for us or any potential small children right now. Put down maybe 100k, pay the rest with a low interest monthly payment, and slowly investing the rest of our current saving and my additional monthly saving into a portfolio. In 5-6 years, we will most likely need to change to a bigger house if we were to have any children that grow to school age (such houses value around 500-600k now, but probably a lot more in 5 years to buy/build). I like this idea because we do not need a bigger house now, the smaller house has less tax, free up more cash inflow each month for investment, and also the smaller house would be much easier to sell if I were to leave my job in the next few years.
2) Buy that 500-600k house now and live in it for the next 10+ years.
I know there are many factors in place, but any comments would helpful. Thank you,
I am a newly graduated attending and I plan to purchase our first house. I hope you can give me your opinions. This is a question of what to buy, and not a question of rent vs. buy.
I have a husband and no children. We have no debt, are maxing out our retirement accounts, and have about 300k in saving in a 1% high yield saving account. Now that I am more familiar with low ER index funds, we plan to slowly roll our savings into an equity portfolio, perhaps at a rate of 5k a month, instead of just dumping everything in at once in case the market crashes (is that a good idea?). We have two options in purchasing a home:
1) Buy a 300k new house which is more than big and comfortable enough for us or any potential small children right now. Put down maybe 100k, pay the rest with a low interest monthly payment, and slowly investing the rest of our current saving and my additional monthly saving into a portfolio. In 5-6 years, we will most likely need to change to a bigger house if we were to have any children that grow to school age (such houses value around 500-600k now, but probably a lot more in 5 years to buy/build). I like this idea because we do not need a bigger house now, the smaller house has less tax, free up more cash inflow each month for investment, and also the smaller house would be much easier to sell if I were to leave my job in the next few years.
2) Buy that 500-600k house now and live in it for the next 10+ years.
I know there are many factors in place, but any comments would helpful. Thank you,
), and upgrades needed to sell it again. However, let's say you buy a big house and don't have kids, then that empty space looks really lonely. Tons of moving variables, so I think you'll have to decide what you want because you know all of the variables and your preferences most. Financially, like the others have said, you're in a good situation, so go with what you want to do.
), and upgrades needed to sell it again. However, let’s say you buy a big house and don’t have kids, then that empty space looks really lonely. Tons of moving variables, so I think you’ll have to decide what you want because you know all of the variables and your preferences most. Financially, like the others have said, you’re in a good situation, so go with what you want to do.
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