Should I Buy New House? (Houston, Taylor: daycare, buying, school)

[Failed Engineer]

You haven't made a compelling case for spending more money so I'd say stay put.

[Lowexpectations]

Originally Posted by dd1153

housing boom is macro / micro market scale . houston is booming as a city compared to the rest of the country right now . if rates hit 10% then economies must be able to support, ie fed not raising rates right now.

Your broad brush fails though, mortgage rates in the 70s pushing close to 10 or high teens in the 80s weren't tied to some booming economy. It simply varies and the fed funds rate isn't the decision maker to long term mortgage rates

[jtothemak]

We are in a similar situation. With the slowdown of more expensive homes and the less than 250k homes still going strong we decided to build a new house in a neighbor that is more desirable to us. However we are going from a 1600sqft house and it has plenty of equity to cover our 20% down payment. My wife has some student loan debt also that the original goal was to pay off quickly but we do not plan on having kids and will not have that added expense and can afford to be a little more selfish with our expenses.

If you want real money advise look up Dave Ramsey or Suzie Orman and follow what they say. Work to live fully debt free with everything including your house paid off. Live as simply as possible enjoy not having the stress of debt on your shoulders.

[Lowexpectations]

Originally Posted by jtothemak

We are in a similar situation. With the slowdown of more expensive homes and the less than 250k homes still going strong we decided to build a new house in a neighbor that is more desirable to us. However we are going from a 1600sqft house and it has plenty of equity to cover our 20% down payment. My wife has some student loan debt also that the original goal was to pay off quickly but we do not plan on having kids and will not have that added expense and can afford to be a little more selfish with our expenses.

If you want real money advise look up Dave Ramsey or Suzie Orman and follow what they say. Work to live fully debt free with everything including your house paid off. Live as simply as possible enjoy not having the stress of debt on your shoulders.

If you want real money advice skip Dave and Suzie. If you need really basic financial advice look them up and then take it with a grain of salt

[Failed Engineer]

Quite frankly, Ramsey and Orman are idiots. The only reason their advice is effective is that the vast majority of people live well above their means and cutting out the fat in terms of optional spending is always a good thing. But the whole idea of being debt free is dumb when the cost of capital is as cheap as it is these days. But you should borrow for good reasons, not spending and carrying credit card balances.

[jtothemak]

Originally Posted by Failed Engineer

Quite frankly, Ramsey and Orman are idiots. The only reason their advice is effective is that the vast majority of people live well above their means and cutting out the fat in terms of optional spending is always a good thing. But the whole idea of being debt free is dumb when the cost of capital is as cheap as it is these days. But you should borrow for good reasons, not spending and carrying credit card balances.

Yes but the typical American consumer is an idiot and does not understand the concept of living within their means and good vs bad debt etc. You have to keep it simple for stupid and what better for simple is pay off everything. Keep in mind only 20% of American households make over 100k a year and 100k is not a lot of money.

[Lowexpectations]

Originally Posted by jtothemak

Yes but the typical American consumer is an idiot and does not understand the concept of living within their means and good vs bad debt etc. You have to keep it simple for stupid and what better for simple is pay off everything. Keep in mind only 20% of American households make over 100k a year and 100k is not a lot of money.

The HH in the US that make 100k or more is more than 20% but even if it wasn't, you make more than 80% of all other HH well that would suggest it is a lot of money comparatively speaking

[jtothemak]

Originally Posted by Lowexpectations

The HH in the US that make 100k or more is more than 20% but even if it wasn't, you make more than 80% of all other HH well that would suggest it is a lot of money comparatively speaking

Trying looking it up. I was shocked too. Why do think the middle class is disappearing in this country.

[Lowexpectations]

Originally Posted by jtothemak

Trying looking it up. I was shocked too. Why do think the middle class is disappearing in this country.

I have looked it up and the upper end of the 4th quintile is over 100k meaning over 20% make above 100k


And you skipped the more important point

[houstonbuyer14]

hi guys,

thanks for all the inputs and advice. The reason I ask this question is that because we are used to live within our needs and save money. Now we are in between of should we get the new house which is what we want but not what we needs ( financially I think we can afford it)or should we continue to save money but at the same time we are worried that by the time we need to new house, it would not be $350k for what we really want.

For those who ask about my current house, it is worth 200k and we owe about 100k on it.

Thanks again.