Personal experience had a big home it was brand new 4bd 4bath 3400 sq ft monster with a game room and theater and we ultimately sold and DOWNSIZED to 2300 sq ft 1980s home with a big corner lot and I’ve never been happier. With the internet rates as high as they are we pay about the same as before but can’t put a price on sanity. So glad we dumped gargantua. My advice to people is buy a place that feels like a home and not like a magazine spread you’ll be better off!
These comments are wild. We’re aiming to move from a 300k home to a 600k home. Have about 100k of equity and will bring another 50k to close. 25% down is plenty. Payment will be manageable.
For those saying it’s unrealistic to pay off first home then move onto a bigger home is because most are buying a home they want but simply can’t “afford”. Just because you can make timely payments doesn’t mean you can afford it.
"Most" says who? The reason it's unrealistic to someone following TMG FOO is because pre-paying low-interest debt (like a mortgage) is the *last* step. It simply doesn't make sense to prioritize low-interest mortgage debt over investing for retirement, so if you are following the FOO you are waiting an arbitrarily long time to upgrade, often to a degree that's untenable. If you want to move to a better neighborhood for schools, or your family has grown, or you need to be closer to an aging relative, those aren't decisions you can just push of 10-15 years to fit some arbitrary debt guideline. And if you can do it while still making financially-sound decisions, why wouldn't you?
If you can afford it, bigger home is better but cost lot more in expenses like property tax, utilities, services like cleaning, grass cutting, etc…😮 If you double/triple the size like 5,000 to 15,000 sq. ft., must more enjoyable living in your home.😊
I don't know how TMG's feel about it, but we had the best of both worlds by using a bridge loan when we upgraded houses. We didn't have to have a contingency to buy a house, so we had a more competitive offer, but we still were able to put a big chunk of money down on the new house without having to put in any of our own cash. We ended up being able to be extra flexible in our move-in date, which was what gave us the edge on our offer for our dream home. And we only ended up having 1 month of double-payments (which we planned for in advance, so it wasn't an emergency). Edit: just got to the end, and TMG wouldn't approve! I made some pretty conservative calculations, so it would have had to have been a series of pretty catastrophic events, timed just right, to leave us in the lurch.
That's just not realistic for 99% of people, nor is it in line with the Financial Order of Operations. Maybe if you're nearing retirement, but hopefully no 35-year old is rushing to pay down that mortgage unless they are already saving 25% gross in the market.
@@andrewmitchell571 I agree with you! However, we do have to take responsibility in the fact that it is a *choice* to upgrade. From a strictly financial standpoint, it makes sense to stay in the house for as long as possible so that it’s paid off and appreciates. You can then sell it and upgrade with an enormous down payment! From a real-life standpoint, you’re choosing not to make the financially savvy decision to get the kids in a better high school, avoid crime, move closer to your job/family, etc. At the end of the day, it is a choice to upgrade which calls for sacrifice.
@@FreeGraceNotes ?? I purchase my first shelter (house) with a $5 an hour household income at 10% interest. So it's all relative. If you purchase a dream home first it's a forever debt. (Renting from the bank)
I agree with Ken. The real qs is why one would want to upgrade. And it is realistic if one had a plan from get go. I am 39 and building my dream home right now but I also paid off my home within 5 years of buying it when I was 32. Yes not do-able for all and everyone because it requires lots of discipline and also good income. So realistic or not, it all depends on diff variables. The home I am building is 2 times the price of my existing home because that is what and where I wanted to build so I planned and saved and then all my 100% $$$ when I sell my paid off home will go to new home directly and not gonna go and start buying Lambo and shit 🤣. So if anyone tells you - not realistic or do-able, it's not true. Everything and anything is possible if you put your head right.
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Never agreed with the money guys more, currently paying down my first home (condo) and will use the 150k as a 50% down on my next home
Personal experience had a big home it was brand new 4bd 4bath 3400 sq ft monster with a game room and theater and we ultimately sold and DOWNSIZED to 2300 sq ft 1980s home with a big corner lot and I’ve never been happier. With the internet rates as high as they are we pay about the same as before but can’t put a price on sanity. So glad we dumped gargantua. My advice to people is buy a place that feels like a home and not like a magazine spread you’ll be better off!
Be like a hermit crab. Keep them as rentals. Save for the next down payment.
These comments are wild. We’re aiming to move from a 300k home to a 600k home. Have about 100k of equity and will bring another 50k to close. 25% down is plenty. Payment will be manageable.
For those saying it’s unrealistic to pay off first home then move onto a bigger home is because most are buying a home they want but simply can’t “afford”. Just because you can make timely payments doesn’t mean you can afford it.
"Most" says who?
The reason it's unrealistic to someone following TMG FOO is because pre-paying low-interest debt (like a mortgage) is the *last* step. It simply doesn't make sense to prioritize low-interest mortgage debt over investing for retirement, so if you are following the FOO you are waiting an arbitrarily long time to upgrade, often to a degree that's untenable. If you want to move to a better neighborhood for schools, or your family has grown, or you need to be closer to an aging relative, those aren't decisions you can just push of 10-15 years to fit some arbitrary debt guideline. And if you can do it while still making financially-sound decisions, why wouldn't you?
If you can afford it, bigger home is better but cost lot more in expenses like property tax, utilities, services like cleaning, grass cutting, etc…😮 If you double/triple the size like 5,000 to 15,000 sq. ft., must more enjoyable living in your home.😊
I don't know how TMG's feel about it, but we had the best of both worlds by using a bridge loan when we upgraded houses. We didn't have to have a contingency to buy a house, so we had a more competitive offer, but we still were able to put a big chunk of money down on the new house without having to put in any of our own cash. We ended up being able to be extra flexible in our move-in date, which was what gave us the edge on our offer for our dream home. And we only ended up having 1 month of double-payments (which we planned for in advance, so it wasn't an emergency).
Edit: just got to the end, and TMG wouldn't approve! I made some pretty conservative calculations, so it would have had to have been a series of pretty catastrophic events, timed just right, to leave us in the lurch.
: )
Get the first home paid for first. Then you can start saving for the upgrade. A no pressure deal is likely a better deal.
That's just not realistic for 99% of people, nor is it in line with the Financial Order of Operations. Maybe if you're nearing retirement, but hopefully no 35-year old is rushing to pay down that mortgage unless they are already saving 25% gross in the market.
not realistic
@@andrewmitchell571 I agree with you! However, we do have to take responsibility in the fact that it is a *choice* to upgrade. From a strictly financial standpoint, it makes sense to stay in the house for as long as possible so that it’s paid off and appreciates. You can then sell it and upgrade with an enormous down payment! From a real-life standpoint, you’re choosing not to make the financially savvy decision to get the kids in a better high school, avoid crime, move closer to your job/family, etc. At the end of the day, it is a choice to upgrade which calls for sacrifice.
@@FreeGraceNotes ?? I purchase my first shelter (house) with a $5 an hour household income at 10% interest. So it's all relative. If you purchase a dream home first it's a forever debt. (Renting from the bank)
I agree with Ken. The real qs is why one would want to upgrade. And it is realistic if one had a plan from get go. I am 39 and building my dream home right now but I also paid off my home within 5 years of buying it when I was 32. Yes not do-able for all and everyone because it requires lots of discipline and also good income. So realistic or not, it all depends on diff variables. The home I am building is 2 times the price of my existing home because that is what and where I wanted to build so I planned and saved and then all my 100% $$$ when I sell my paid off home will go to new home directly and not gonna go and start buying Lambo and shit 🤣. So if anyone tells you - not realistic or do-able, it's not true. Everything and anything is possible if you put your head right.
Buy with cash! Don’t listen to these goofs. Check out Dave Ramsey (billionaire)
Dave Ramsey is not, and does not claim to be, a billionaire.