Home Affordability
How much home should we buy? Family of 4 + dog. TC: 600K NW: 3.5M Wife wants a $3M home but I think it is too much since I am the only earner and it would make us house poor. We have been renting for a while now and feel we should have a nice home for our family. Where we live, there are no houses below 1.5M. Age: Early 40s, Most of the NW is in Stocks/ETFs (401K included)
Is your quesrion how much can you afford or how much should you buy ? Affordability is very different to what makes sense to buy. You can easily afford a $3M home, the question is do you need a $3M home?
This is the wrong way to look at affordability. Check with your lender how much you may get approved for(probably 4mn) and buy the max possible. A bigger loan is a better loan.
Wow, why? This is extremely bad advice
How did you end up with 3.5M stocks and zero real estate?
401k?
We had a home which we sold a few years ago and moved to a different place. We waited for market to soften and then covid happened and everything skyrocketed. (Including our investments so cannot complain that much)