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Bad idea to buy house given potential kids + career change?

Hey all! Big financial decisions on the way, and I'm trying not to derail a solid financial situation by bad decisions/timing. Half exciting, half scary.

Question:

With a planned income drop and kids soon, is it safe to buy an $800-850k house now, or is buying at all right now a mistake?

Me + Wife: late 20's, HCOL metro (not VHCOL) w/ no debt

Income

  • Total HHI: $200-250k
    • I make $150k/yr in sales - just got promoted so may make closer to $200k next year.
      • I'd love the career flexibility in 3-5 yrs to do something lower-paid but less stressful, maybe closer to $80-100k/yr
    • Wife: $50k, career growing

Spending

  • ~7k/mo all-in for a very comfortable life. Rent is $3.1k of that.

Savings ($1.05mm, largely from inheritance)

  • 150k total in our 401ks
  • 50k in Roth IRA
  • 25k in managed brokerage
  • 35k in HYSA
  • $765k wife's inheritance
  • All investments (401k, Roth, brokerage, etc) are in index funds (VTWAX or VTSAX/VTIAX)
    • Note: potentially receiving another $500k in the next 2-5 years :(

House

  • Want 2-3 kids, starting in next 2-3 years
  • In-laws live far and have generously offered to help us buy if the house has an ADU they can stay in to visit grandkids. My wife and I love this idea (grandparent support + house support is amazing!!!)
  • ADU homes here run ~$800k–1M
  • In-laws would gift $150–200k as an advance on their estate, not on title
  • Rough plan: ~400k total down, $200k theirs $200k ours. That leaves us at $2,600/mo mortgage, including property tax/insurance/misc it's probably closer to $3.8k. Depending on house price it could be $4100/mo.

So...

  1. Does buying in the next 1-2 years make sense? Or better to wait, given kids + potentially scaling down my income in next few years
  2. How much of the inheritance should I leave in index funds vs. putting into a down payment?
  3. Should we consider decreasing our 401k contributions to improve our monthly take-home given current investment balances? Which could offset much of a pay decrease in my career change.
  4. Anything big I'm missing as a first time home buyer?
submitted by /u/LearningToBee
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1wfvrd3/bad_idea_to_buy_house_given_potential_kids_career/
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