FIREchief wrote: ↑Mon Aug 17, 2020 1:33 am
So you have combined income of $500K and you can't afford a decent place to live?
neverpanic wrote: ↑Mon Aug 17, 2020 3:42 am
Sounds like time for a new thread to convince fyre4ce to go buy a decent home so the family can stretch out and grow.
fyre4ce - Disregard if this is too personal (which means I already know it's too personal), but if your wife were to take a year off, would her job be there at the same earning level when she returned? Or is she limited to taking 6-12 weeks unpaid maternity leave in order to retain her position? $2M is a lot, but financially, you have the means to do it, IMO, as it seems you're realistic about what a future inheritance may look like. It's my lowly opinion that the only reason to forestall the move is if it's likely your wife's income would go to $0 after the birth of your next child.
I don't want to hijack this thread with one about my housing (I have posted other threads on this topic here
) but I will say a few things:
Spouse is an independent contractor in healthcare, and gets paid for both management work (which can be done remotely) and also work in the hospital. "Full" income is about $350k ($500k household), which she earned in 2018 while child-less. In 2019 she earned about $250k with maternity leave. For a variety of reasons the pandemic will probably reduce her future income a bit, and she also has a desire to work slightly less due to the child at home. We are also concerned about her working in the hospital treating COVID patients while pregnant, so I ran some numbers that say if she took 12 months off from hospital work next year and did only management work from home, we would drain our non-retirement assets down to 0 if we bought a $2.1M house today. This is a conservative case but certainly not ridiculous. Her job will definitely be secure if she took a year off.
In any case, we probably can "afford" a $2.0M house, but it's making us both very uncomfortable because it's far closer to the limit of affordability than anything else we've ever bought. Under the circumstances it's probably the right thing to do. An extra $500k in cash would make this purchase much more comfortable. Shocking as it sounds, it's been hard to find a suitable place even though we've been actively looking for months. Inventories are low, demand is high, and the houses in this area are all old and quirky so it's hard to find one we both like. We went after a cheaper place ($1.3M) in a less desirable neighborhood last week, bid $100k over asking, didn't get it- there were 13 offers, and someone went $150k over with a cash offer. So even with everything lined up, sometimes it takes a while to get.