[USER]

Looking for input, I’m 27 and ready to put an offer in on a 650k house. This house is at the very top of my budget but the perfect house. I’ve got $45,000 saved up for a down payment (VA loan).

I’m tossing the idea around of liquidating $80,000 worth of stock in my taxable account to also put down on the house. Didn’t want to ever touch the money in my taxable account as I plan on retiring in my early 40’s and that was going to be my income along with pension, and SS supplement until I reach “retirement age” and touch my TSP.

Current income: $110,000 seasonal full time, $25,000 VA disability income, roughly $8,000 unemployment yearly.

Stick with the smaller down payment and save assets for early retirement or put down on the house and pick up where I left off invest in a taxable account in a year or two?

[Rachy]

It sounds like that is way too much house than you can afford on that salary. I would get something in budget, put a large down payment like 20% down, and also still have a 3-6 month of full living expenses saved. I’d wait until you can make all those things happen before buying, life is expensive and so is home ownership. And terrible idea to pull from stocks, that’s robbing your future self and you will regret that.

Save save save Dave Ramsey will help you get to where you need before buying. If you must buy know I’d say look in the price range of $200k or less that is in line with your income and will be sustainable.

[Giovanni]

I’d question your own desire for FIRE if you’re considering buying this house honestly. This house could set you back years.

[Amy]

I have a VA loan and you don’t have to put any money down. I understand if you need to to lower the payment.

Keep in mind the tax implications if you sell from your brokerage account.

[Jennifer]

If you plan to stay there a long time might be great -I regret not buying the bigger forever house when I was young….it would have gotten more affordable as we aged.

I had three kids and a home office in a small house, worked fine but we could have pulled off a better house earlier.

I knew we would not move due to the nature of our work.

A counter point to consider.

Starter houses are no longer as easy.

Worth a look: I’m going back to school to advance my degree & Thinking of getting a loan

[Christina]

Would love to know how to have a $400k NW at 27. It’d be an inspiration to many!

[Bonnie]

In the book or audiobook Diary of an Early Retiree: How You Can Do It Step by Step it says to never be house poor. Buy less and keep your money for upkeep and early retirement. When the housing market drops you’ll be glad you did.

[Tara]

Nothing sucks quite as much as being house poor. I make a good amount more than this and I would NEVER overextend myself to that level.

Had this been 25 years ago, maybe. But houses are overpriced now and interest rates suck.

This sounds like a recipe for disaster. But, if you’re brave, go for it!

Don’t miss: I took out a high interest loan, which (as always) was supposed to be short term but the payment killed me

[Nhien]

I would wait.

I own 2 houses with VA loan. One is 2.85% and one is 4.75%. there is no way I would buy in this market as well as that price just to start off. You can have multiple VA loan at the same time as long as you still have some VA limit left. I would max out TSP instead of you are still in and play with stock market. I feel like you would live above your mean if you buy that house. But at the same time, I don’t know how much your gross income. I am in military, have a side job and I still find it’s hard to survive right now.

[Claudia]

What makes it the “perfect” house? At 27, IMHO, we haven’t found anything “perfect” yet because we’re just starting to learn from, or making some, mistakes. Signed, 46 y/o that made mistakes in my mid to late 20s that for the past decade I’ve been wishing someone had advised me against. I wish I knew FI people then. I wish they told me to buy vs rent. The past 5 years have redirected my life. I’m doing well (Glory to God almiighty), no debt except two mortgages that are paid for by one home’s rental income (granted, that’s gross profit, so I know I’m still not in the clear, I’m working on reserves).

But I digress. I’m all for you buying young but that’s a huge mortgage and CapEx will also be huge! Association fees only get higher and higher. If it can be used as a duplex or triplex, that’s different.

Have you seen: Anyone with MOHELA as their student loan servicer still waiting for their first monthly statement?

[Mark]

Anonymous member buy a cheaper house to get the monthly payment lower.. something that serves it purpose now isn’t the time to buy your dream home buy a fixer upper and build sweat equity in it then after it’s fixed up sell it for a profit or rent it then upgrade your house to something better that’s what I’m doing buying a house for 57k needs 15k-20k in material to make it nice and current market for similar houses in better conditions sell for 85k-120k (my mortgage is $375 with 6.25% interest)

[Author]

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