We ALMOST Bought a $1.8M House…

And I am, at this moment, regretting not doing it.

$1.8M.

$1-8-0-0-0-0-0-0.

That’s a heck of a lot of cash.

We’re not rich people. We’re not the type of people that should be spending $1M a home, let alone $1.8M.

But — that is what it looks like we HAVE to do if I don’t want a crazy horrible commute and we don’t want to leave the area.

What makes the $1.8M possible is that we’re still strongly leaning towards buying with (AND LIVING WITH) my in laws. The big requirement is that they have a separate living area from us (separate unit on the property or at the least an in law with separate entrance.)

The $1.8M house was super cute. 3 bedroom, 2 bath, with a 400 square foot garage we could convert…

It had its issues. Other than being $1.8M. It had some termite activity, according to the disclosures. The 400 square feet of the garage would be challenging to turn into a real 1 bedroom apartment (my in laws aren’t married but are friends, so they can live in the same unit just need their own rooms.) The lot didn’t seem that big, though I guess it was at 7,500 sq ft, but most of that was in the front yard and in a very long driveway.

I regret not buying it, but I would have regretted buying it.

It was originally a 2br/1ba, and along its life some time an addition was plopped on the back of another bedroom and bath – the master suite. But the suite wasn’t that sizable… a full sized bed felt tight in there. While the home showed quite nicely, the reality was that for $1.8M it was too small for us, given we want to grow our family soon.

But I don’t think anything here will really be the right fit… unless we want to spend $3M+, which we don’t, and we won’t, unless we win the lottery we don’t play.

That said, my husband and I started tracking our joint net worth and it’s about $920k right now. Not too shabby. Mine is about $840k of that! But that’s ok. We’re doing well, yet living in a 1 bedroom apartment. I realized that this year, with my stock and bonus and such, I could clear $300k-$350k before tax ($117k of that I’ve already made as of April 1, which is crazy to think.) If I could maintain this level of income for the next 30 years, sure, we can afford a $1.8M home. But I won’t. I won the job lottery at the moment and am holding on for dear life. In 3 years, I can save a good $300k and we should break $1M in net worth. After we hit $1M, I’ll feel comfortable having another child… but I’m not sure I feel comfortable purchasing a home for $1.5M+. $500k, sure. $800k, maybe. $1M, possibly. $1.8M…

That’s too much for a house. That’s just insane.

My husband makes $80k a year. We aren’t paying for childcare right now, but if his parents got sick that could change any minute and we’d have $2k/ mo right there. With another kid, that’s $4k a month. It just doesn’t add up. Even if his mother puts down $1M and we have a $800,000 mortgage, that’s about $7000 / mo. How does anyone do this?

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One comment

  1. Mr A. says:

    I personally think you should plan to rent if you want to stay there, or plan to move away in several years.

    $1.8M for a 3 bedroom house with no in law suite is absurd.

    Just your income in one or two years buys a 5 bedroom 4 bath nice updated house and in law suite easily for $400-500K where I live and in many other places.
    We don’t make the kind of income you make in our locale, and it would be near impossible without being a CEO. Take that income while you can, save it, and then go find your happy place to grow your family elsewhere, or stay there and rent.

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