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Posted on 1/7/26 at 3:44 pm to Jax-Tiger
quote:
How old are you? When do you plan to retire?
I'm guessing that you have 20+ years until retirement. If you didn't invest another cent, and just let what you have grow, you will probably have at least $4M in 20 years.
I'm not suggesting that you DON'T put away the $5K into a brokerage account or put money into your 401k, but if finances get tight for some reason, you could stop those payments temporarily, if needed.
It sounds like you have quite a buffer to utilize if you get too far out over your skis with the house, or in the event that your wife loses her job, etc. Especially since your income is likely to go up in the near future, and any shortfalls would only last until your income catches up.
I am 36 and wife is 33.
I don't see myself retiring before 60 but would like the option.
I don't see my wife working until 60 and want to make sure that is an option for her.
If we did this, we would definitely not be able to put $5K a month in the brokerage account but think we could continue to put something there and increase back up to $5K a month over time.
Posted on 1/7/26 at 3:45 pm to POCKET
If she kept her job your good.now run the numbers without her salary since you said there’s a chance she will stay at home. Basically how likely is that chance? Not likely your find however if she does stay home it will be tight
Posted on 1/7/26 at 3:46 pm to POCKET
I will say I've been house poor, and I don't want to go back there again. We moved into a bigger, nicer house that we could afford at the time, but then added an "unplanned blessing" to our family and ended up needing to put the kids in private school. That tuition then made our affordable house not so affordable anymore. All that being said, just make sure you have enough margin for things life throws at you unexpectedly.
Posted on 1/7/26 at 3:47 pm to POCKET
quote:
Same homes in neighborhood are selling for $450K and more and we still owe $260K so we should get ~$200K out of selling current home. Depending when we actually did this (thinking with in next 6 months), we would most likely pull ~$100K of the total ~$600K out of taxable investments
Don’t forget those realtor commissions. I bought a house in Montgomery County last year and the tax rates can go from 1.5% to 3.4%. That’s about a $16,000 difference without homestead. Me being new to the area the mud tax was a shock in how much that changed things.
We struggled with area also because my wife works in North Houston off 45 and it’s about a 20 minute commute to where we live in Spring off 99. I’m in North Conroe but only have to be at the office a few hours couple days a week.
This post was edited on 1/7/26 at 3:51 pm
Posted on 1/7/26 at 3:49 pm to notsince98
quote:
The increased costs will come from something. Is that acceptable? Does the OP have any idea how much the change is going to be? Bigger houses are more expensive in every way, usually in ways people dont consider.
My post is not about what "can the OP afford" but do they really want to? Some people do less and want a nicer house. Some people want less of a house and spend more on other things. Everyone has a limit and have to decide what is best for them.
This is what worries me some. We are putting $5K a month in a brokerage account now. I have budgeted for how I think the new house will increase our monthly expenses and tried to do so conservatively, but I have also heard it always costs more than what you think it will cost.
I think we can afford it, but I can't decide if we should afford it and there are downfalls to it.
When we bought our first house, we bought conservatively and regret that now as our salaries have more than doubled since and in hind-sight we could have afforded more.
I'm trying to find the right balance now between not being too conservative and not getting uot over skis too much
Posted on 1/7/26 at 3:52 pm to POCKET
If I were you, I’d wait on the house. Better to be crammed in a little tight than not be able to save as much as you want. Plus it encourages you and your wife to not buy as much shite because there’s limited space. 
I have the opposite problem you have. I have a huge house and want to downsize because some of the kids moved out. I have to decide whether to be ok with paying cash for a house, wait until rates drop more, or just stay where I’m at.
I never believed being mortgage free was a great idea, but I’m sort of changing my mind on it. Being mortgage free will allow me to keep my taxable income quite low in retirement (still 15+ years away).
I have the opposite problem you have. I have a huge house and want to downsize because some of the kids moved out. I have to decide whether to be ok with paying cash for a house, wait until rates drop more, or just stay where I’m at.
I never believed being mortgage free was a great idea, but I’m sort of changing my mind on it. Being mortgage free will allow me to keep my taxable income quite low in retirement (still 15+ years away).
Posted on 1/7/26 at 3:52 pm to Mingo Was His NameO
quote:
It doesn’t matter when the baby is actually a baby, but having three mobile kids in a 3 story townhouse that is probably too small would suck.
This is where wife is at
We can make it work, but it won't be the most ideal layout
Basically we have an office on our 2nd floor off our living room / kitchen and two kids are going to need to share that room. 1 kid is in there now and its working, but putting 2 kids in there is going to that much tougher.
Edit: By the way, appreciate all the responses. Helpful to think about and get different thoughts / perspectives.
This post was edited on 1/7/26 at 3:55 pm
Posted on 1/7/26 at 4:12 pm to POCKET
Let the newborn in your room for next six months or year, then move. Too much to do now. Let the rates fall, build equity.
Congrats on making great decisions thus far. You've put yourself in a position that, really, either decision is going to be fine for you.
Congrats on making great decisions thus far. You've put yourself in a position that, really, either decision is going to be fine for you.
Posted on 1/7/26 at 4:40 pm to POCKET
I've been in almost the same situation, was slightly younger, one kid, and in the same area of Houston.
I'll say this, you should invest in your best quality of life. You are SO far ahead of where you need to be especially if you want to continue working and not looking to retire at 45 or something crazy aggressive.
If what yall want is to move out of the city into a bigger house and a yard, then do it. If you want to stay more central then id consider staying a few extra years saving up and seeing if you get that significant salary bump. Here is the other thing, nothing precludes you from moving, not like it, and moving somewhere else. Will you waste a little money? Sure, but the point is to use your money to give yourself the best life. You could damn near pay for the 800k house in cash if you wanted and still be a good place retirement wise and just continue to save more. Its highly likely that over the next 10 years a good house in a good neighborhood in Houston will appreciate not all that less than the S&P 500.
I'll say this, you should invest in your best quality of life. You are SO far ahead of where you need to be especially if you want to continue working and not looking to retire at 45 or something crazy aggressive.
If what yall want is to move out of the city into a bigger house and a yard, then do it. If you want to stay more central then id consider staying a few extra years saving up and seeing if you get that significant salary bump. Here is the other thing, nothing precludes you from moving, not like it, and moving somewhere else. Will you waste a little money? Sure, but the point is to use your money to give yourself the best life. You could damn near pay for the 800k house in cash if you wanted and still be a good place retirement wise and just continue to save more. Its highly likely that over the next 10 years a good house in a good neighborhood in Houston will appreciate not all that less than the S&P 500.
Posted on 1/7/26 at 5:04 pm to POCKET
you can either buy the house or continue to invest like you have been. Both are undoubtedly true. Whether you can do both only you can answer
Posted on 1/7/26 at 5:35 pm to POCKET
Yes, you can afford it.
But if I were you, I would stay your current home for at least another 5-8years.
3 bedrooms +office has enough space for a family of 5.
Convenience has more value than space.
But if I were you, I would stay your current home for at least another 5-8years.
3 bedrooms +office has enough space for a family of 5.
Convenience has more value than space.
Posted on 1/7/26 at 5:48 pm to volinktown
quote:
But if I were you, I would stay your current home for at least another 5-8years. 3 bedrooms +office has enough space for a family of 5.
Do you have kids?
Posted on 1/7/26 at 6:13 pm to POCKET
I live in Houston and would highly recommend that you buy a 4-5 bedroom, 2-3 bathroom house in a nice neighborhood.
Most home buyers are families and your current situation in The Heights is most desirable for a single person or s couple without kids.
Home values will continue to increase if you select the right neighborhood. Mortgage rates are likely to decrease 1.5% - 2% at some point over the next 3-5 years, which will allow you to refinance.
The biggest risk in Houston is property tax and homeowner's insurance. Make sure the home is not assessed at too high of a value and does not have a history of flood damage.
Your income will continue to grow. Purchase the home and don't look back!
Most home buyers are families and your current situation in The Heights is most desirable for a single person or s couple without kids.
Home values will continue to increase if you select the right neighborhood. Mortgage rates are likely to decrease 1.5% - 2% at some point over the next 3-5 years, which will allow you to refinance.
The biggest risk in Houston is property tax and homeowner's insurance. Make sure the home is not assessed at too high of a value and does not have a history of flood damage.
Your income will continue to grow. Purchase the home and don't look back!
Posted on 1/7/26 at 6:26 pm to POCKET
What do you do for a living that you can make that much?
Posted on 1/7/26 at 6:40 pm to POCKET
quote:
I am coming to the Money Board for some input on whether we should buy a new house.
How old are you and what age do you plan to retire?
Imo I'd say go for it assuming you aren't trying to retire crazy early. As someone else mentioned, you are way ahead of most. If you work another 20 years without adding another dime in contributions to the $1.3M and assume 6% growth. That nest egg would be ~$4.2M in 20 years.
If it was me, I'd still keep maxing the 401ks and stop the $5k/month contributions to the taxable account. If you do that, in 20 years it would be worth ~$6M. Or you could do a mix and reduce both the monthly 401k and taxable contributions by $2.5k each.
More than likely, you'll be able to refinance to a lower rate in the future and free up more cash for investing etc. Also if you do get big raises in the future is just icing on the cake.
Just make sure you increase your emergency fund to account for the increased house payment.
Posted on 1/7/26 at 7:13 pm to POCKET
You have substantial assets for a couple presumably under 40. You can afford it now if you want it. If rates drop, home prices are probably going up soon after. You can get the house now and refinance later.
But yes, you will need to accept reduced funding to the investments.
But yes, you will need to accept reduced funding to the investments.
Posted on 1/7/26 at 7:42 pm to FieldEngineer
quote:
If I were you, I’d wait on the house. Better to be crammed in a little tight than not be able to save as much as you want. Plus it encourages you and your wife to not buy as much shite because there’s limited space.
Agreed but with the way my mind works, it'll never really feel like we have saved / will save enough and be the right time to do it.
Fully agree that if we have more space we (wife) will feel the need to fill the space. That worries me. Stuff is expensive. Plus, more space means more space for the kids to spread their toys around which doesn't sound fun.
Posted on 1/7/26 at 7:53 pm to houtigerfan
quote:
I live in Houston and would highly recommend that you buy a 4-5 bedroom, 2-3 bathroom house in a nice neighborhood.
Most home buyers are families and your current situation in The Heights is most desirable for a single person or s couple without kids.
Home values will continue to increase if you select the right neighborhood. Mortgage rates are likely to decrease 1.5% - 2% at some point over the next 3-5 years, which will allow you to refinance.
The biggest risk in Houston is property tax and homeowner's insurance. Make sure the home is not assessed at too high of a value and does not have a history of flood damage.
Your income will continue to grow. Purchase the home and don't look back!
That is essentially the idea.
We are thinking Bridgeland which I believe is a nice area (and close to some of my wfies family) but I do hate the taxes there. Could be naive but do not believe there is much flood risk there.
Posted on 1/7/26 at 7:57 pm to BigD43
quote:
What do you do for a living that you can make that much?
I work for a Big 4 accounting firm.
I do appreciate that I make good money (and wife makes good money too), but at the same time it doesn't always feel like that much. I think that is because our friends have similar professions so it just feels normal to us. And because we have treated investing like a required expense for so long that it has limited our discretionary income to some extent.
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