Well, the answer to your question is unique for each person. What I would feel comfortable paying is based on my on budget. We are making an offer that would result in a housing payment that would be equivalent to our current rent after you run through the entire year. That would include paying property taxes, homeowners insurance, etc but then getting a refund back. The loss point of view is the interest on the CDs where the cash is currently located.
So suffice it to say that in order to get what I want we will carry a single 417k loan and pay for the rest of the home in cash.
I do project a pretty healthy depreciation on the price of the property but such is life. We will be there at least 18 years and I doubt they will take the offer anyway so it is an appeasement offer more then anything else.
In terms of type of property you pegged it, I want a large lot and neither my wife or myself are fans of new housing, nor will we pay Mello Roos. We also want a cul de sac, we don’t want the back of the home to be against power lines or a busy street…. We would ideally like something with wider easements so your neighbor is not looking into your yard or home. So basically if we can find something in good condition like that in a decent school district we will be okay with it.
Anyways, sorry if that is vague.. Basically our limit is the high 600’s or maybe 700 flat.
