Should I buy a house, and if so how much should I spend?

[KrazyHorse]

polls do not work from phone. Please enter your suggestion manually. Budget is 1-3 MM in southwest connecticut/NYC suburbs (on Long Island Sound). Beachfront with 4 br, modern, tennis court and pool will probably run me ~2.5 to 3.

I am crowd sourcing in anticipation of impeccable poly wisdom. Please do not disappoint.

[100% Wolf]

Buy something far cheaper and donate the rest to charity.

[Hauldren Collider]

Try to find one in a city/state that doesn't suck. Requirements for not sucking: being at least 100 miles south of where you are now. It's too ****ing cold.

[pchang]

In your market, you are better off renting and banking the difference. Exception if you really want to stay there long term. Remember, it is about how much you keep. I came this close to telling my boss I quit yesterday. Then, he backed off and gave me what I wanted. FU money = freedom.

[Aeson]

How much of the budget should be reserved for stocking the bar?

[KrazyHorse]

In your market, you are better off renting and banking the difference. Exception if you really want to stay there long term. Remember, it is about how much you keep. I came this close to telling my boss I quit yesterday. Then, he backed off and gave me what I wanted. FU money = freedom.

agreed, except rental market is **** - difficult to find reasonable places

[KrazyHorse]

I don't actually want to tell my boss to go **** himself (I find my job interesting and challenging). Key is knowing that I can and still enjoy a middle class lifestyle without ever working again. Not quite there yet (3-4 years away).

[KrazyHorse]

How much of the budget should be reserved for stocking the bar?

"When it doesn't matter what the drinks cost it's always happy hour".

[pchang]

I remember there was nothing good for under 2 in those areas. However, I thought the stuff at 2.5 was pretty decent. Put down enough to avoid PMI. PMI is just a rip off. Also, don't skimp on flood insurance. They can handle the wind. It's storm surge that gets you.

[Aeson]

For that price I can build you a bar with a staff of 50. It will be on the beach and attached to a reasonably large structure that could be referred to as a "castle". We will go over budget by a multiple of 20 and construction will be delayed almost a decade by what can be termed "acts of God" but are really just poor management decisions. You'll still have enough left over to retire with the world's largest bottle of Tanduay rum. As a plus, you will be located near some of the best dive spots in the world.

[rah]

If you truly intend to retire in 3-4 years, buying a house there sounds really silly. Buy something smaller and just suck it up for a few years unless you think the investment value of what you buy will make it worth it. I suspect it won't.

[Felch]

Beachfront is a nice idea, but with global warming coming, why not go for a baller yacht? It doesn't have a tennis court, but it's got the ocean for a swimming pool, three double cabins, two twin cabins, and a pullman for the help. Also be sure and pick up a few cannons, there are a few good ones here in firing condition and with no background checks. With that you'll be all set to rule as the Pirate King of Waterworld.

[pchang]

At <= $1mill, market pretty much follows the economy.
At $1mill < x < $2mill, market lags economy by 6 mo. on the downside, but leads economy by about 3 mo. on the upside
At $2mill < x < $5mill, market stops tracking overall economy and follows the 1%
At >= $5mill, market seems disconnected from reality

I believe that leveraged at 80%, a $2.5+ mill property will have a positive return after 3 years (including transaction costs). Below that, no.

[The Mad Monk]

Living on the beach is overrated, especially with hurricanes and noreasters. Buy something cheaper inland, and either rent a house when you want beachtime, or buy a rental to lease out when you're not using it. Losing a rental property to storm damage is one thing. Having all of your favorite things washed out to sea is quite another.

[molly bloom]

Tuppence ha'penny.