[USER]

Advice needed, pls
I make $90ish k/year as a teacher in CA. My SO of 18 years makes on average about $200k/year, except for this year.

I have been looking to buy a house for about 10 years but it will only be in my name, therefore, I can only use my income.

He has debts and obligations but most of his income goes to our family so it would be used to pay for the house.

His income is also unpredictable. This year he’s only made $50k because I feel like he’s not TRYING to work and he owns his own business.

If he is motivated and working, like he’s always been, he has the ability to make great money.

Anyway, we have about $450k in savings. HYSA just expired and everything is renewing for like 1%. I have never invested any of it so it’s all our savings from hard work.

This frustrates me because the money isn’t doing anything just sitting there.

Where we live (and we have no plans to move for at least the next 5-7 years), houses are around $1m for a little 1950’s original dump.

I was approved for a mortgage loan of $800k with $400k down and $400k financed on my teacher salary alone.

Problem is: I can’t find anything for $800k! It would use most of our savings and everything for $800k is a dump. So I’ve held off on buying but things keep getting more expensive.

I really want to be a homeowner, like realllyyy.

Thing is, we rent a perfectly lovely, brand new house we built from the ground up 5 years ago, for only $2200/month and we are very comfortable. So then I was thinking about buying a duplex locally (within 20ish minutes) to rent out and stay renting in our current home.

That’s why I haven’t ever invested any money because I’ve always felt like I want to buy and it won’t have time to sit and grow.

But here I am, house searching exhausted and indecisive and plain frustrated that I can’t afford anything. What would you do if you were me?

We have no debt. No payments other than the $2200 rent. We like to travel and vaca and eat…lol. But I really want a house!!!

Help, pls!

[Heather]

It seems like you have a great rental situation. Would it scratch your homeowner itch to buy a rental property somewhere else?

[Paula]

Why is he sending so much money to his family? I would stop that now.

[Matthew]

just rent if you like the place. That is cheap, and I don’t think owning a home would be worth it in comparison

[Nicole]

Read Quit Like a Millionaire for a perspective about not buying a house as a path to FI.

[Lisa]

Is your husbands salary consistently $200k. Kinds worries me when you say he’s not working hard this year and only made $50k. That’s a big difference.

In addition, I feel you should never buy a house for the maximum amount you are approved for.

Taxes & Insurance will always increase. I think affording $400k on your salary alone will be difficult but if your husband continues to bring in $150k + every year then y’all will be fine!

I’m wondering why his salary wasn’t included for the loan approval? Probably would be approved for a larger loan.

[Camilo]

look a little further outside of your city where prices may be lower?

[James]

I’d buy the shitty fixer upper.
If I was choosing to rent, I’d invest the money.
Nobody FI/REs off of HYSA rates.

[Debbi]

If you want to have money to keep traveling, I would keep renting.

[Katie]

I’m confused about how you rent a house that you built from the ground up? I would rent forever if you have a nice house that rents for that cheap.

As a teacher you could move to a much lower cost of living area and pay cash for a new house with your savings.

[Armen]

Where do you teach? My mom teaches early education and is barely clearing like 50-60k in LA.

[John]

If you really want to buy a house, you need to stop spending! Do you also have a large retirement account, or is the 450k it?

With housing as low as you have and income that high, you should be able to save much more, if you choose.

Though, personally, even though properties have increased my wealth, if stay a renter at that rate and get invested.

You can always change your mind in the future and you should have a large down payment.

[Tove]

I would start a campaign. Like really, the real estate market is crazy. We have to move from a home beeing a global investment and closer to a human right.

Prices are insane and make everyone miserable.

[Jorge]

Dump the dude. And you need 300k income to even buy a house. CA isn’t for people like you and I anymore. We’re working class unfortunately

[Author]

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