okay, i'm just floored (Boston, Arlington: townhouse, buy, living)

[thinkingotherthings]

Originally Posted by msRB311

If you're paying $3500 a month to rent I'm curious as to why you're willing to pay $7800 a month to own?

It used to be that people paid less on owning a home than on renting.

Is owning a home and paying that much more for it really worth it?

Part of it is about space and location. We are paying 3500/mo for a 3-bd/2-ba apartment in Waltham – which, while certainly on the come up, is still a solidly second-tier city with average schools. We are looking for either 3-bd + office or 4-bd, and 2.5 baths. Depending on which town we're talking about, and townhouse/condo or SFH, we could be looking at 5k to 8k in rent anyways. (Waltham is still in play for us, but we are also looking to see if we can sneak into a nearby tier 1 town.)

Also, rent goes up every year; home ownership costs do too, but not by nearly as much – just property taxes and maintenance costs. Add to that building equity over time, and I think it definitely makes sense financially.

Beyond that, we just really want to own our own property. Even though our landlord is a nice guy, there's an undeniable appeal about owning a home that's yours.

Originally Posted by simplexsimon

So $40k/year in excess cash after bonuses, after the big mortgage, and after daycare.

One of you could take an almost 80% pay cut ($40k cut on $200k) and you’d still be within budget and you still have levers like retirement savings to pull if needed. Survive the daycare period and you’re that much further along.

Believe me I’m all about strong personal finances but my question is is your risk aversion costing you anything? I’m not trying to make you spend money, but hope you see the numbers objectively as you’ve laid out.

I appreciate the input; always helps to get more perspectives as we figure out what number we're truly comfortable with.

[id77]

Originally Posted by jayrandom

I mean, you've made up an income and a budget and decided it was untenable. It absolutely is doable with the budget you've made, just not in a way you would feel comfortable with. I have to admit I wouldn't feel all that comfortable at $8k PITI, but if forced I could definitely make it work.

My concern with that level of housing cost isn't so much the monthly budget but the ability to withstand long stretches of temporary un- or under- employment.

Yes it is doable, though the trade-off is a nicer home now versus a comfortable retirement later. Or having a liquid nest egg versus being house rich/cash poor. That's a pretty rough trade-off.

[simplexsimon]

Originally Posted by id77

Yes it is doable, though the trade-off is a nicer home now versus a comfortable retirement later. Or having a liquid nest egg versus being house rich/cash poor. That's a pretty rough trade-off.

I agree if the goal is early retirement. At $300-400k HHI, one could have both the nicer home and the comfortable retirement especially if one's expenses outside of housing and daycare (both of which will be gone in retirement) is $60k/year like thinkingotherthings. I have a similar cost structure and am happy to see some CD members aren't a bunch of spendthrifts.

[G-fused]

It's a fine house that is staged well, the few thousand they put into staging probably yielded an additional couple hundred grand. I'm glad I'm not looking to buy.

[msRB311]

Originally Posted by G-fused

It's a fine house that is staged well, the few thousand they put into staging probably yielded an additional couple hundred grand. I'm glad I'm not looking to buy.

Same

[atf487]

Originally Posted by simplexsimon

Do people have a problem with $1.4m with this house in particular or how expensive houses are all over? It's all relative...if a family wants to live as close to the city as possible but have a SFH, a yard, and a town with good schools, what are their options and prices?

I think this forum skews older and it's just a market with different fundamentals than what has been true for most people's lives. All the options are expensive. We don't have enough homes in the places people want to live; there's a ton of demand for walkable towns with good schools, older generations aren't moving out of their homes as often since they can't downsize in a cost effective way, and zoning/local politics makes it very hard to build new things. I think younger buyers (in general, not always) are more likely to sacrifice space for a good location, which is why you see bidding wars on 1500sqft homes in the inner-ring suburbs.

We closed on a place in Arlington two months ago; we were looking for a SFH but ended up with a condo since we felt like we couldn't afford a SFH in the towns we'd want to live in, and were missing our window with rates starting to rise. I saw a ton of listings that went for significantly over asking and the Kelwyn Manor house doesn't shock me.

[fabfan84]

If this floors you, you haven't been paying attention for several years now.

[mwj119]

Originally Posted by Jimbo21

https://www.redfin.com/MA/Arlington/...4/home/8403972


3 bed, 1.5 bath, 1727 SF. listed $1.095M, sold $1.405M. wtf.

What's that old saying? Location, Location, Location?

1 mile walk to alewife. A quick bike ride to Davis Sq. Nice, quiet residential street. Good shape.

Not surprised at all to be honest. Very few towns are as well positioned as Arlington. Might as well be Cambridge West.

[msRB311]

I just happened to notice this one in Arlington that just sold 4 days ago :

https://www.redfin.com/MA/Arlington/...4/home/8409681

It's a tear down. Someone really cant move right into that house at all yet it still sold for 785k. House needs to be gutted.

[Brave Stranger]

Originally Posted by msRB311

I just happened to notice this one in Arlington that just sold 4 days ago :

https://www.redfin.com/MA/Arlington/...4/home/8409681

It's a tear down. Someone really cant move right into that house at all yet it still sold for 785k. House needs to be gutted.

That's about the common price for a tear-down around town. Depends on the location of the lot.