[Scarlett]

[quote=patientrenter]Scarlett,

I was saying that your situation is an example of why our system is nuts. Why? For one, because you say that you won’t be able to increase your downpayment much over the next few years, so that means you have little future savings available to pay for housing. Since you also don’t have the current price of what you want to buy in cash, my conclusion is that you cannot afford to buy a house for that price. You don’t have the money now, nor do you have the saving power necessary to pay for it in the near future. Yet you consider it normal and rational to buy it anyway. You probably are not unusual. That this kind of behavior is normal in our society is, to me, nuts.
[/quote]

But I am looking to fulfill 3 of the most commonly believed requirements for a rational home purchase, 1. 20% down; 2. home price = 3X gross income (500K); 3. debt to income ratio 28%. Isn’t that enough?! Ok, I understand I don’t have cash reserves beside the downpayment, but I can actually get cash if need be from retirement,life insurance. I am not perfect, but I think I will do ok and pay my mortgage.
I explained above where my money goes – is actually saved/invested for college, insurance, retirement, not spent recklessly. If I wouldn’t put those money there maybe I could pay my mortgage off sooner *if* I wanted to.
I think you may have a problem with 30 yr fixed rate loans then, that THEY shouldn’t exist – if you think I should be able to pay it off in a few years. It’s your opinion, but I think you are going too extreme in the opposite direction.

[Scarlett]

[quote Arraya]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.[/quote]

Interesting graph. Love it. I think that IS the shape. Do you have time units for the X axes?

[Scarlett]

[quote Arraya]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.[/quote]

Interesting graph. Love it. I think that IS the shape. Do you have time units for the X axes?

[Scarlett]

[quote Arraya]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.[/quote]

Interesting graph. Love it. I think that IS the shape. Do you have time units for the X axes?

[Scarlett]

[quote Arraya]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.[/quote]

Interesting graph. Love it. I think that IS the shape. Do you have time units for the X axes?

[Scarlett]

[quote Arraya]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.[/quote]

Interesting graph. Love it. I think that IS the shape. Do you have time units for the X axes?

[Scarlett]

[quote=outtamojo]Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?[/quote]
Plenty for what? To live decently in a pricey area like La Jolla UTC (renting) – yes, but not saving much.

Here is a breakdown:
The take home salary is 12K. Maximizing 401K means 2000/mo. 2000/mo daycare, 1000/mo college funds, 500/mo life insurance; gas,car insurance, car payments 1000/mo. $500 utilities, cable and iphones. So here are 7000$ already accounted for. we have left $5000 at MOST. $2500 rent.
Food is at least $1500.

Then there are clothes, toys/games, books, parks, classes/activities, and other household items…

Only for last couple years we had real income after one of us left finally academia…

Of course all of us going to Europe to see my family and them to see the kids every other year for a few weeks wipes most of the savings those year…

[Scarlett]

[quote=outtamojo]Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?[/quote]
Plenty for what? To live decently in a pricey area like La Jolla UTC (renting) – yes, but not saving much.

Here is a breakdown:
The take home salary is 12K. Maximizing 401K means 2000/mo. 2000/mo daycare, 1000/mo college funds, 500/mo life insurance; gas,car insurance, car payments 1000/mo. $500 utilities, cable and iphones. So here are 7000$ already accounted for. we have left $5000 at MOST. $2500 rent.
Food is at least $1500.

Then there are clothes, toys/games, books, parks, classes/activities, and other household items…

Only for last couple years we had real income after one of us left finally academia…

Of course all of us going to Europe to see my family and them to see the kids every other year for a few weeks wipes most of the savings those year…

[Scarlett]

[quote=outtamojo]Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?[/quote]
Plenty for what? To live decently in a pricey area like La Jolla UTC (renting) – yes, but not saving much.

Here is a breakdown:
The take home salary is 12K. Maximizing 401K means 2000/mo. 2000/mo daycare, 1000/mo college funds, 500/mo life insurance; gas,car insurance, car payments 1000/mo. $500 utilities, cable and iphones. So here are 7000$ already accounted for. we have left $5000 at MOST. $2500 rent.
Food is at least $1500.

Then there are clothes, toys/games, books, parks, classes/activities, and other household items…

Only for last couple years we had real income after one of us left finally academia…

Of course all of us going to Europe to see my family and them to see the kids every other year for a few weeks wipes most of the savings those year…

[Scarlett]

[quote=outtamojo]Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?[/quote]
Plenty for what? To live decently in a pricey area like La Jolla UTC (renting) – yes, but not saving much.

Here is a breakdown:
The take home salary is 12K. Maximizing 401K means 2000/mo. 2000/mo daycare, 1000/mo college funds, 500/mo life insurance; gas,car insurance, car payments 1000/mo. $500 utilities, cable and iphones. So here are 7000$ already accounted for. we have left $5000 at MOST. $2500 rent.
Food is at least $1500.

Then there are clothes, toys/games, books, parks, classes/activities, and other household items…

Only for last couple years we had real income after one of us left finally academia…

Of course all of us going to Europe to see my family and them to see the kids every other year for a few weeks wipes most of the savings those year…

[Scarlett]

[quote=outtamojo]Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?[/quote]
Plenty for what? To live decently in a pricey area like La Jolla UTC (renting) – yes, but not saving much.

Here is a breakdown:
The take home salary is 12K. Maximizing 401K means 2000/mo. 2000/mo daycare, 1000/mo college funds, 500/mo life insurance; gas,car insurance, car payments 1000/mo. $500 utilities, cable and iphones. So here are 7000$ already accounted for. we have left $5000 at MOST. $2500 rent.
Food is at least $1500.

Then there are clothes, toys/games, books, parks, classes/activities, and other household items…

Only for last couple years we had real income after one of us left finally academia…

Of course all of us going to Europe to see my family and them to see the kids every other year for a few weeks wipes most of the savings those year…

[Scarlett]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

I am afraid you’d be right – so let’s be careful what we wish for…

[Scarlett]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

I am afraid you’d be right – so let’s be careful what we wish for…

[Scarlett]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

I am afraid you’d be right – so let’s be careful what we wish for…

[Scarlett]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

I am afraid you’d be right – so let’s be careful what we wish for…

[Author]

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