Author Topic: To buy a 2nd house/condo or not?  (Read 907 times)


  • Pencil Stache
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To buy a 2nd house/condo or not?
« on: April 08, 2019, 10:11:09 PM »

So I bought a townhome style condo 3 years ago in the SF Bay Area close to San Jose or thereabouts for 440K with a HOA of $300. PITI+HOA is 2300 per month. Happy there. Kid goes to Kinder this year and elementary schools are good. Concern is middle and high. I agree they are 6 years away but the current assigned Jr. High and High schools assigned to our home are bad. Want to move to another part of the town where all schools are good. Now the question is should I buy now?

I don't have to sell my current home to put down 20% on a home up to 950K. I will rent it out and can get $2400 per month on it. There is a detached SFH built in 1954 in the price range. Or there are brand new townhome style condos being built in the 840K range with a $300 HOA. Can't decide. Please help make a decision or talk some sense into me if I acting irresponsibly. All my savings are in VTSAX so I will have to pay tax next year if I withdraw now. I have about 300K in investments (Not including retirement accounts) and most of them are in VTSAX. No other debts. My monthly take home after 401K and taxes is $10K.

Question 1: Should I buy?
Question 2: If not now because I have potential tax liability? Should I start saving in bonds and buy 4 years later just in time for my kid's middle school? The goal I to reduce tax liability.
Question 3: If it doesn't matter, SFH or a brand new townhome condo with HOA?


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