I'm deathly scared of lifestyle creep and truly need a “come to Jesus” gut check here. And yes, we have spoken to our financial advisor, who did not give us a “red flag, abort, don’t do this.” But I still need a stranger’s confirmation or outside opinion and thoughts.
This is essentially a debate over a “$525K Super Easy Mode” home vs. a “$675K Better Long-Term Fit” home.
Us: Married couple, late 30s, both employed, one child and maybe another in the future. Neither of us is planning to become a full-time stay-at-home parent, but we have really valued the mental flexibility. Jobs are stable. Net worth is about $1.4M. We bring home about $16K/month after taxes, before retirement contributions. No debt other than current super tiny mortgage.
Current situation: We've outgrown our home and need better schools. Will sell it. Currently have roughly $7,500+ leftover each month after all required expenses, maxing retirement accounts, and pretty much buying what we want when we want with no worries or even a thought. We like hosting family and friends for dinner and small parties.
Option A: Super Easy Mode home: around $525K. We would put about $425K down and still keep roughly $400K liquid/money market. Great neighborhood, great public schools, near family. Built in the 1970s, about 2,400 sq. ft., and appears to have had meaningful updates rather than just cosmetic flipping, pending inspection. My concerns are older bones, less attractive curb appeal (wife is okay with it, I think it's borderline ugly) and the possibility that we eventually outgrow it. Estimated leftover money: about $6.5K–$7.5K/month.
Option B: Newer/larger home: around $675K. Same down payment and similar remaining liquidity. Same neighborhood, but about 20 years newer, larger, remodeled and overall nicer inside and out. Great curb appeal. It has a dedicated office, bigger family/flex/play/media space, better entertaining setup and more room to grow. Biggest caveat is a 10-year-old roof, but most other major items appear newer, including HVAC. Estimated leftover money: about $5K–$6K/month.... assuming we both keep working and we don't tighten optional expenses.
What would you do? Obviously, neither option puts us anywhere near bankruptcy, but I am struggling with the mental shift from “we live cheaply and are bulletproof” to “we are still very comfortable, but less bulletproof.” My gut says the newer/larger house may be worth it because it could keep us from feeling like we need to move again in 10+ years, and it may be easier to resell if we ever do. Would you pay the premium for the better long-term fit, or preserve maximum flexibility?
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source https://www.reddit.com/r/RealEstate/comments/1u86tou/are_we_overbuying_or_overthinking_525k_easy_mode/
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