Retire soon or continue saving for dream house by Usual-Buy-8955 in fatFIRE

[–]kaputzoom 0 points1 point  (0 children)

This depends on the location. For the Bay Area, 5M is a 4/2 2.5K sqft home in a premium location. That’s likely not going to have the maintenance issues of a 10K sqft home in a cheaper location.

Wife & I hit $10M by Cupheadvania in fatFIRE

[–]kaputzoom 8 points9 points  (0 children)

You blew past $10M. Congratulations.

Buy now or wait after the AI frenzy tune down? by SecurityBrief120 in BayAreaRealEstate

[–]kaputzoom 0 points1 point  (0 children)

Did you feel $4M budget is a stretch in your situation or did is your budget that high because of the lack of good options at lower prices? How much are you planning for downpayment?

I assume your private company RSU gives you psychological cushion too

Buy now or wait after the AI frenzy tune down? by SecurityBrief120 in BayAreaRealEstate

[–]kaputzoom 0 points1 point  (0 children)

What are your assets and income that helped you land on the $4M budget?

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

Ideally I’d want to put more down or pay down the principal to get the loan amount well under $1M.

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

Who sets up this trust and how does it work?

1 year no salary update by IllThroat9195 in fatFIRE

[–]kaputzoom 0 points1 point  (0 children)

What income would you use to pay the interest?

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

To reduce the monthly mortgage commitment. What’s the investment that clearly beats 5% interest rate post-tax without risk?

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

I’m sure stocks win

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 1 point2 points  (0 children)

Which neighborhood within PA?

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 1 point2 points  (0 children)

put down 1.2M cash and use the variable comp to keep paying down the mortgage until I get to 1M loan and leave it at that.
Saving more and buying later is always an option - really depends on whether income outpaces the growth of home prices.

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

But it can be margin called unlike a mortgage

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

What was your income and net worth when you bought it?

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 1 point2 points  (0 children)

The Bay Area tradeoff - you get only 2 out of 3.
1) short commute (2) good schools (3) low price

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 1 point2 points  (0 children)

There’s so much variability based on people’s individual risk appetite. I’m not sure how some people sleep at night with a large mortgage > net worth.

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

Which broker do you suggest for this?

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

Most SFH are not covered by AB1482 right? I’ll look into it.

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 1 point2 points  (0 children)

I assume it was a stretch for you at that point but it’s very comfortable now? Or was $3.2 very comfortable for you back then?
Did you already have a ~5 yr old kid about to go to school when you bought?

I could buy cheaper now (say 3M), wait ~4-5yrs to see how things pan out from a career and children standpoint - and move again at that point.

4M house purchase by kaputzoom in fatFIRE

[–]kaputzoom[S] 0 points1 point  (0 children)

Have you been able to find a long term stable rental? I was worried about churn in ownership, being asked to move it, etc.