Do I have to choose between buying home in HCOL and FIRE or can I have both?

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drmoneytails
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Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Tue Oct 03, 2017 10:41 am

We live in an area with HCOL with an insane housing market (Denver).

I am a physician and wife is a nurse (working part time currently). No kids but planning on it in the next 12-18 months. I am 31, wife is 36.

I just started my first real job. Yearly income for the next 2.5 years will be around 300k. Afterwards, salary will increase to somewhere around 400-450k.
Our current networth is around 150k. Only debt is aprox 35k (two car loans). No student loans anymore (yay!).
We are currently renting (2600 a month). Other expenses aside from rent and car payment are in the vicinity of 6k per month.

As many people out there, we would love to own our home. Homes in our preferred neighborhood are on the market for around 700-900k. And these are not mansions, just regular homes. The McMansions go for > 1.3 million.

If we were to signup for this insanity and purchased a home for that price (700-800k), would I be ruining my chances of achieving Financial Independence early in my career (say within 15 years)? Would I be committing myself to a "ordinary" retirement age at 60 or 65? Or could I have it all - have "the house" and be financially independent in my late 40s?

Wellfleet
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by Wellfleet » Tue Oct 03, 2017 10:46 am

If your monthly budget is $9,000-10,000, an annual ~$110-120K, many on here would suggest that you have 25x annual expenses saved. So can you save $ 2.5-3 million within your FIRE timeframe?

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Tue Oct 03, 2017 10:50 am

Wellfleet wrote:
Tue Oct 03, 2017 10:46 am
If your monthly budget is $9,000-10,000, an annual ~$110-120K, many on here would suggest that you have 25x annual expenses saved. So can you save $ 2.5-3 million within your FIRE timeframe?
If I can save 100k per year, i'd have around 2.5mil in 15 years. I don't think I can save 100k in the first 3-4 years of my career, but can prob save a little more than that once we are more established.

I fear I am overlooking how much a house that price would put us behind. My wife would be really happy which is a big reason why I want to do it, but I also don't want to shoot myself in the foot and have to work for decades to fix a potential mistake.

mervinj7
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by mervinj7 » Tue Oct 03, 2017 10:53 am

Would the 900k home be similar to what you are renting for $2600k? If so, renting for the foreseeable future may be a better option. Also, even though you work in a HCOL area, you don't necessarily have to retire in it. My family and I live in the San Francisco Bay Area and although we own a home here, we don't plan on staying past retirement.

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Tue Oct 03, 2017 10:59 am

mervinj7 wrote:
Tue Oct 03, 2017 10:53 am
Would the 900k home be similar to what you are renting for $2600k? If so, renting for the foreseeable future may be a better option. Also, even though you work in a HCOL area, you don't necessarily have to retire in it. My family and I live in the San Francisco Bay Area and although we own a home here, we don't plan on staying past retirement.
The 900k home would be much nicer than what we are renting, no doubt about it.

And yes, we definitely don't plan on retiring here. We want to stay for 10-15 years ant then move somewhere cheaper.

KlangFool
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by KlangFool » Tue Oct 03, 2017 11:17 am

drmoneytails wrote:
Tue Oct 03, 2017 10:59 am
mervinj7 wrote:
Tue Oct 03, 2017 10:53 am
Would the 900k home be similar to what you are renting for $2600k? If so, renting for the foreseeable future may be a better option. Also, even though you work in a HCOL area, you don't necessarily have to retire in it. My family and I live in the San Francisco Bay Area and although we own a home here, we don't plan on staying past retirement.
The 900k home would be much nicer than what we are renting, no doubt about it.

And yes, we definitely don't plan on retiring here. We want to stay for 10-15 years ant then move somewhere cheaper.
OP,

Then, why do you want to buy a house? It does not make any sense.

KlangFool

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by KlangFool » Tue Oct 03, 2017 11:19 am

drmoneytails wrote:
Tue Oct 03, 2017 10:59 am
mervinj7 wrote:
Tue Oct 03, 2017 10:53 am
Would the 900k home be similar to what you are renting for $2600k? If so, renting for the foreseeable future may be a better option. Also, even though you work in a HCOL area, you don't necessarily have to retire in it. My family and I live in the San Francisco Bay Area and although we own a home here, we don't plan on staying past retirement.
The 900k home would be much nicer than what we are renting, no doubt about it.

And yes, we definitely don't plan on retiring here. We want to stay for 10-15 years ant then move somewhere cheaper.
drmoneytails,

Then, it is a lot cheaper to rent. It is a wrong time for you to buy anyhow. Until you have kids and decide where to send your kids to school, you do not know where you will choose to stay.

KlangFool

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mhc
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by mhc » Tue Oct 03, 2017 11:29 am

Depends on how long you want to work. Seems like with your income level you could work 20 years in Denver living in a house and then retire.

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lthenderson
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by lthenderson » Tue Oct 03, 2017 11:34 am

I would recommend to the OP to read some of the articles on the White Coat Investor's site.

https://www.whitecoatinvestor.com/

He has lots of great advice for doctors with lots of income.

https://www.whitecoatinvestor.com/live-like-a-resident/

SurferLife
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by SurferLife » Tue Oct 03, 2017 11:55 am

drmoneytails wrote:
Tue Oct 03, 2017 10:50 am
I don't think I can save 100k in the first 3-4 years of my career, but can prob save a little more than that once we are more established.
I have to say, I was a bit shocked when I read this. Didn't you say that you're making 300k for the next 2.5 years and then 400-500k after that? How is it possible that you can't save 100k in 3-4 years with an approx. 10k/mo budget? There must be something enormous in your budget that you are not telling us about, because your numbers are not adding up. Living in a high COL area is expensive, but Denver isn't THAT expensive. Let's just say you can live "only" on 200k. That leaves 100k per year for the next 2.5 years, so let's say you could save 250k in the next 2.5 years. When your income goes up to 400k, you could then save an additional 200k per year. In 5 years you could save over 500k, or am I missing something? Let's say that we're not accounting for taxes and cut that figure in half, that's still 250k in 5 years.

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by adamthesmythe » Tue Oct 03, 2017 12:05 pm

. I fear I am overlooking how much a house that price would put us behind.

When you retire you can sell and recover the house value at that time. It MIGHT even turn out to be a substantial increase.

Don't forget that rent could increase considerably over 15 years.

(Many in strong economy areas will put it more strongly, and will say that house value WILL increase and rent WILL increase considerably.)

> My wife would be really happy

Is the choice between maybe 20 years working with a happy wife or 15 with a grumpy one??

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Watty
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by Watty » Tue Oct 03, 2017 12:20 pm

drmoneytails wrote:
Tue Oct 03, 2017 10:50 am
My wife would be really happy which is a big reason why I want to do it, but I also don't want to shoot myself in the foot and have to work for decades to fix a potential mistake.


If buying a house turns out to be a terrible mistake then you are looking at having to work maybe another year or so not decades.

It isn't a frivolous McMansion you are looking at so your wife's wants should count for a lot.

drmoneytails wrote:
Tue Oct 03, 2017 10:41 am
Homes in our preferred neighborhood are on the market for around 700-900k....
....
If we were to signup for this insanity and purchased a home for that price (700-800k), would I be ruining my chances of achieving Financial Independence early in my career (say within 15 years)?

....
Yearly income for the next 2.5 years will be around 300k. Afterwards, salary will increase to somewhere around 400-450k.
Over the next 15 year your total income will be somewhere around $6 million dollars.

With your income buying a house is a lifestyle choice, not an investment decision.

If it was strictly an investment choice then renting a mobile home in the bad part of town would make sense.
drmoneytails wrote:
Tue Oct 03, 2017 10:59 am
And yes, we definitely don't plan on retiring here. We want to stay for 10-15 years ant then move somewhere cheaper.
Don't count on that. Once you settle down them moving is a lot harder and making the kids change schools is not an easy choice. Once the kids are out of grade school there will be a lot of good arguments for staying where you are until your kids are through high school.

I moved to Atlanta in a corporate merger and we never planned on retiring here. Eventually my son married and they had a kid at about the time I was ready to retire. With a kid and grand kid here we may move to a different house someday but we are unlikely to leave the area.

If you really want to live somewhere else I would suggest moving in the next few years.


drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Tue Oct 03, 2017 12:40 pm

SurferLife wrote:
Tue Oct 03, 2017 11:55 am
drmoneytails wrote:
Tue Oct 03, 2017 10:50 am
I don't think I can save 100k in the first 3-4 years of my career, but can prob save a little more than that once we are more established.
I have to say, I was a bit shocked when I read this. Didn't you say that you're making 300k for the next 2.5 years and then 400-500k after that? How is it possible that you can't save 100k in 3-4 years with an approx. 10k/mo budget? There must be something enormous in your budget that you are not telling us about, because your numbers are not adding up. Living in a high COL area is expensive, but Denver isn't THAT expensive. Let's just say you can live "only" on 200k. That leaves 100k per year for the next 2.5 years, so let's say you could save 250k in the next 2.5 years. When your income goes up to 400k, you could then save an additional 200k per year. In 5 years you could save over 500k, or am I missing something? Let's say that we're not accounting for taxes and cut that figure in half, that's still 250k in 5 years.
300k gross. After tax, it is a lot less than that. This first year our take home pay is 16k a month. We are spending 8-9k a month including our rent and car payments. I am figuring in the first 3-4 years, if we do buy a house that is that expensive, we can save around 80k a month. I think once my income increases, I can up my savings significantly to over 150k a year.
That being said, there is a lot of speculation in my thoughts as well. Such as how much it would truly cost to maintain such house, what would be the cost of children, etc

brybogle
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by brybogle » Tue Oct 03, 2017 2:18 pm

Stop the madness. You are earning 300k now, 500k soon, and by the time you retire probably 750k or more. I know you haven't saved up that much yet, but, $800k will seem very small to you by the time you retire. You will probably be earning about that much every year. Worst case, assuming the house becomes worth $0, it delays your early retirement by a year. Best case, it accelerates your early retirement due to increase in nominal house value. There aren't a lot of 20yr periods where real estate has lost value.

That said, you need to improve your savings rate. $8-9k a month on rent and car payments, when your rent is $2.6k, means you're spending $6k on car payments. Either your math is off or you need to trade those Ferraris back into the dealership. ;-)

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by climber2020 » Tue Oct 03, 2017 2:39 pm

drmoneytails wrote:
Tue Oct 03, 2017 10:41 am

I just started my first real job. Yearly income for the next 2.5 years will be around 300k. Afterwards, salary will increase to somewhere around 400-450k.
Our current networth is around 150k. Only debt is aprox 35k (two car loans). No student loans anymore (yay!).
We are currently renting (2600 a month). Other expenses aside from rent and car payment are in the vicinity of 6k per month.

If you just started your first real job out of training, how are you already spending 6000 dollars a month excluding car and rent?

Live like a resident for the next 5 years (see White Coat Investor) and don't buy the house if you're already planning to leave Denver.

The other thing to consider is that most people's first jobs do not work out and they have to move in a few years anyway.

bloom2708
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by bloom2708 » Tue Oct 03, 2017 2:48 pm

You certainly can have both a house and financial independence.

You will have large salaries. Your student loans are paid off. Your spending and saving rate will determine everything. At your salaries, you should be able to save a huge pile and spend a huge pile each year.

Your challenge will to not live like doctors. If you both buy new S class cars every 2 or 3 years, then that will set back your FI goals.

If you buy a $900k house and then 5 years later move to a $1.5 million dollar house, then that will set back your FI goals.

If your wife has a kid and then decides she wants to be a stay at home mom, that will set back your FI goals.

Taxes, travel, private schools, high end furnishings, jewelry, all the trappings are out there to swallow up your nice salaries. Everything you see, hear and read is trying to separate you from your current and future money. :wink:

With your salaries, you could certainly buy an $800k house. You could probably pay it off in 5-7 years if you really tried. But, as mentioned, renting may be a better long term solution.

Spending time here is one way to up your knowledge and set a path of sustainability. Good luck!
Last edited by bloom2708 on Tue Oct 03, 2017 4:43 pm, edited 1 time in total.
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Tue Oct 03, 2017 2:49 pm

brybogle wrote:
Tue Oct 03, 2017 2:18 pm
Stop the madness. You are earning 300k now, 500k soon, and by the time you retire probably 750k or more. I know you haven't saved up that much yet, but, $800k will seem very small to you by the time you retire. You will probably be earning about that much every year. Worst case, assuming the house becomes worth $0, it delays your early retirement by a year. Best case, it accelerates your early retirement due to increase in nominal house value. There aren't a lot of 20yr periods where real estate has lost value.

That said, you need to improve your savings rate. $8-9k a month on rent and car payments, when your rent is $2.6k, means you're spending $6k on car payments. Either your math is off or you need to trade those Ferraris back into the dealership. ;-)
I apologize, that was a typo. We spend a total of 8-9k a month with rent and car payment, and taking rent and car payments out, we spend 3-4k.
We are definitely not driving any ferraris, lol.

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Tue Oct 03, 2017 2:51 pm

climber2020 wrote:
Tue Oct 03, 2017 2:39 pm
drmoneytails wrote:
Tue Oct 03, 2017 10:41 am

I just started my first real job. Yearly income for the next 2.5 years will be around 300k. Afterwards, salary will increase to somewhere around 400-450k.
Our current networth is around 150k. Only debt is aprox 35k (two car loans). No student loans anymore (yay!).
We are currently renting (2600 a month). Other expenses aside from rent and car payment are in the vicinity of 6k per month.

If you just started your first real job out of training, how are you already spending 6000 dollars a month excluding car and rent?

Live like a resident for the next 5 years (see White Coat Investor) and don't buy the house if you're already planning to leave Denver.

The other thing to consider is that most people's first jobs do not work out and they have to move in a few years anyway.
My bad, that was a typo. We spend a total of 8k-9k a month including rent and car payment. Car payments + rent total 4k (I am trying to get rid of the car payment asap).
I still think we are spending a lot of money and we are actively trying to cut some bills to improve our cash flow

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Tue Oct 03, 2017 2:53 pm

I appreciate all the replies!

We are going to wait to make such a big move and purchasing a home until at least one year into this job. So far everything is working great but as you guys pointed out, it is my first real job so I need to give it some time.

Wellfleet
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by Wellfleet » Tue Oct 03, 2017 3:41 pm

You also might consider renting a nicer place that has some amenities that could keep you from wanting a house so quickly.

We got really tired of shared and often broken laundry, poor parking, noisy neighbors and non-responsive landlords...but the place was cheap.

In net, it might have been cheaper to rent a nicer place that fixed those things so we could hold off the desire to buy. Good luck!

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by mrsytf » Tue Oct 03, 2017 4:23 pm

300k gross is you and your wife? Or just you? Why is your wife working part-tile? If I was your wife and wanted to buy a home in a HCOl area, I would be working full time and overtime especially with no kids in the picture! Make hay while the sun shines. Once you have children, she may opt to be a SAhM or go back to part-time.

But with a 12-28 month time frame her added income could help to knock out one or both car payments that's costing you $1400/month.

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by bigred77 » Tue Oct 03, 2017 4:42 pm

You are looking to buy a house 2X salary in 3 years. You don't have to worry. You can probably afford the $1.3M McMansion if that floats your boat without causing yourself any financial stress. Denver is pricey but you have it better than a number of other large cities in terms of housing prices.

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Wed Oct 04, 2017 6:27 am

mrsytf wrote:
Tue Oct 03, 2017 4:23 pm
300k gross is you and your wife? Or just you? Why is your wife working part-tile? If I was your wife and wanted to buy a home in a HCOl area, I would be working full time and overtime especially with no kids in the picture! Make hay while the sun shines. Once you have children, she may opt to be a SAhM or go back to part-time.

But with a 12-28 month time frame her added income could help to knock out one or both car payments that's costing you $1400/month.
300 for the both of us. She is working part time only for a myriad of reasons, one of them being that she is also enrolled in full time time graduate school.

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by Frisco Kid » Wed Oct 04, 2017 7:52 am

Lot's of things happening in your life right now. New job for you, wife in graduate school, kids possibly in a year. Sit back for awhile and see how all these things turn out. As others have said, your future earnings will give you many choices.Congrats on paying off your student loans, are we to assume your wife has/will have some?

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by mrsytf » Wed Oct 04, 2017 6:59 pm

If your wife is in an NP program with a potential future salary increase then your future home sounds like it is more within your reach. I personally would wait until after you have kiddos to buy, those little ones have a way of interrupting even the best laid plans.

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by runner540 » Wed Oct 04, 2017 7:12 pm

drmoneytails wrote:
Tue Oct 03, 2017 2:53 pm
I appreciate all the replies!

We are going to wait to make such a big move and purchasing a home until at least one year into this job. So far everything is working great but as you guys pointed out, it is my first real job so I need to give it some time.
Good call. The work of these economists says that the Denver market strongly favors renting right now: https://business.fau.edu/departments/fi ... nd-graphs/

This methodology considers all the financial costs and benefits of renting and buying.

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by Archimedes » Wed Oct 04, 2017 7:26 pm

I think you should consider how long you will be in a house that you buy. Buying a nice home when you can afford it and you plan to stay for more than a decade is a very reasonable financial decision. We saved and put down 100k (20%) on a nice large home in a great school district when we had little kids. It was scary, expensive, and I did all my own lawn mowing and home repairs despite being a highly paid professional. But the mortgage and taxes got comfortable after the first year or two. We paid off the mortgage over 20 years and got 1.25M when we sold. It turned out to be a very good investment in a nice place to live and raise a family, and also a positive for our net worth.

You have expensive car payments. I think you might consider reprioritizing. A car is a depreciating asset. A home in a nice area is an appreciating asset. Consider ditching the expensive cars and buy that nice home. I would rather drive a reliable Honda or Toyota for a decade, with no car payments, and own a nice home. Prioritizing a nice home over an expensive vehicle is much more effective for building a large nest egg.

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Wed Oct 04, 2017 8:01 pm

Frisco Kid wrote:
Wed Oct 04, 2017 7:52 am
Lot's of things happening in your life right now. New job for you, wife in graduate school, kids possibly in a year. Sit back for awhile and see how all these things turn out. As others have said, your future earnings will give you many choices.Congrats on paying off your student loans, are we to assume your wife has/will have some?
The student loans we just paid off were hers from nursing school. I was fortunate enough to not have any medical school debt or any other debt except for my car.
We are paying her graduate course out of pocket. We did not want to take any loans for that. She worked full time while she was in the first year of her program and I was moonlighting while in fellowship. Now that we moved and I got a big raise, she has cut down to part time in order to finish her NP.

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Wed Oct 04, 2017 8:07 pm

Archimedes wrote:
Wed Oct 04, 2017 7:26 pm
I think you should consider how long you will be in a house that you buy. Buying a nice home when you can afford it and you plan to stay for more than a decade is a very reasonable financial decision. We saved and put down 100k (20%) on a nice large home in a great school district when we had little kids. It was scary, expensive, and I did all my own lawn mowing and home repairs despite being a highly paid professional. But the mortgage and taxes got comfortable after the first year or two. We paid off the mortgage over 20 years and got 1.25M when we sold. It turned out to be a very good investment in a nice place to live and raise a family, and also a positive for our net worth.

You have expensive car payments. I think you might consider reprioritizing. A car is a depreciating asset. A home in a nice area is an appreciating asset. Consider ditching the expensive cars and buy that nice home. I would rather drive a reliable Honda or Toyota for a decade, with no car payments, and own a nice home. Prioritizing a nice home over an expensive vehicle is much more effective for building a large nest egg.
Thank you for the input!
I agree about the cars. They were not my smartest move. Mine is financed at 3.9% and hers at 2.9%. We owe 10k on mine so I am planning on liquidating it next month- it is not at all an expensive car (small Mazda) but I bought it brand new when I had no credit history with no money down. I can't really go back in time but I can pay it off and then keep it for many years.
My wife loves her current car (subaru crosstrek); and she keeps her vehicles for > 10 years. Last one was a used vehicle that she drove for 12 years until it reached just over 150,000 miles and then the transmission broke - at that point it was costing us more money to maintain the car than to purchase a new one. Since she does keep her cars until they no longer drive, we purchased a brand new car. We probably will pay it faster but at 2.9% I don't feel the urge to pay it off that fast.

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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by emoore » Wed Oct 04, 2017 8:29 pm

I think this post is a little off base. Denver is by no means HCOL. Look at LA or SF or NYC. Much much higher cost of living. And normal houses are now where near $800k. You can get a really nice house for 400-500k. I make less than half of you and have a great life in Denver. I figure I could retire at 55 or younger here. Great place to live.

gator15
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by gator15 » Thu Oct 05, 2017 3:19 am

I'm curious, what neighborhoods are you considering where the prices are $900k? I think you can find something cheaper in a desirable neighborhood. Also, I believe you can easily save $100k annually based off your income. I think the homes you are considering at that price point are among the most expensive homes in most neighborhoods in Denver.

drmoneytails
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Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Thu Oct 05, 2017 6:22 am

emoore wrote:
Wed Oct 04, 2017 8:29 pm
I think this post is a little off base. Denver is by no means HCOL. Look at LA or SF or NYC. Much much higher cost of living. And normal houses are now where near $800k. You can get a really nice house for 400-500k. I make less than half of you and have a great life in Denver. I figure I could retire at 55 or younger here. Great place to live.
Agree that this is not LA or SF, but for us it is HCOL since we are coming from a city with lower cost of living in terms of housing. I guess it is all about perspective.
As I said I am still relatively new to the area so perhaps you are right and we have to do a little more digging.. We were looking in Park hill since I was told they have a good school district.

gator15
Posts: 300
Joined: Sun Mar 18, 2012 8:33 pm

Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by gator15 » Thu Oct 05, 2017 6:54 am

drmoneytails wrote:
Thu Oct 05, 2017 6:22 am
emoore wrote:
Wed Oct 04, 2017 8:29 pm
I think this post is a little off base. Denver is by no means HCOL. Look at LA or SF or NYC. Much much higher cost of living. And normal houses are now where near $800k. You can get a really nice house for 400-500k. I make less than half of you and have a great life in Denver. I figure I could retire at 55 or younger here. Great place to live.
Agree that this is not LA or SF, but for us it is HCOL since we are coming from a city with lower cost of living in terms of housing. I guess it is all about perspective.
As I said I am still relatively new to the area so perhaps you are right and we have to do a little more digging.. We were looking in Park hill since I was told they have a good school district.
I'm quite familiar with Park Hill and there are cheaper houses in that area. Seems like you are looking at houses directly on Montview or a houses within a block of Montview. Most houses in Park Hill are significantly less than $900k. I recommend opening up your search. Park Hill is nice but there are other great neighborhoods with good schools including Stapleton, Lowry, Congress Park etc. You can get nice homes in those areas for a lot less than $900k.

Hug401k
Posts: 186
Joined: Fri Mar 28, 2014 7:49 pm

Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by Hug401k » Thu Oct 05, 2017 12:43 pm

You can afford it. Save until you can put 20% down. Make sure this is where you want your kids running around the house, outside in the yard and at school because that will happen in a blink. (ie a yard may not be important now, but it will be)

The question becomes what can you not afford if you do the house? You may need to give up expensive vacations, car payments, self funding graduate school for now. Pick your priorities.

drmoneytails
Posts: 58
Joined: Fri Nov 25, 2016 1:43 pm

Re: Do I have to choose between buying home in HCOL and FIRE or can I have both?

Post by drmoneytails » Fri Oct 06, 2017 4:18 am

gator15 wrote:
Thu Oct 05, 2017 6:54 am
drmoneytails wrote:
Thu Oct 05, 2017 6:22 am
emoore wrote:
Wed Oct 04, 2017 8:29 pm
I think this post is a little off base. Denver is by no means HCOL. Look at LA or SF or NYC. Much much higher cost of living. And normal houses are now where near $800k. You can get a really nice house for 400-500k. I make less than half of you and have a great life in Denver. I figure I could retire at 55 or younger here. Great place to live.
Agree that this is not LA or SF, but for us it is HCOL since we are coming from a city with lower cost of living in terms of housing. I guess it is all about perspective.
As I said I am still relatively new to the area so perhaps you are right and we have to do a little more digging.. We were looking in Park hill since I was told they have a good school district.
I'm quite familiar with Park Hill and there are cheaper houses in that area. Seems like you are looking at houses directly on Montview or a houses within a block of Montview. Most houses in Park Hill are significantly less than $900k. I recommend opening up your search. Park Hill is nice but there are other great neighborhoods with good schools including Stapleton, Lowry, Congress Park etc. You can get nice homes in those areas for a lot less than $900k.
Ok, that's good to know. Will definitely broaden my search!

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