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Buying a much bigger house
Thus said (Warren X):
A friend and I had the following debate when I said that I would one
day like to buy an $800K house, upgrading from my current $200K
condominium apartment, and I would like to hear more opinions on the
matter.
Does "one day" mean in three months, or three years, or thirty years?
I said that we planned to stay in the condo as long as possible,
putting extra money down on the mortgage.
My friend said that we should move to an intermediate house of, say,
$400K, as it would provide more "financial leverage" that would be
required for the big house.
If "one day" means "three years" then I agree with you, although you'll
still need a pretty darn healthy income to get that $800K house (which
will probably run more like $900K or so by then.)
If "one day" means "thirty years" then I agree with your friend,
although you should remember that in thirty years that 800K house will
cost somewhere between a few and several million.
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