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Two Attending physicians, student loan debt of 660K, Buy 1st home now or delay?

Home Mortgages and Home Buying Two Attending physicians, student loan debt of 660K, Buy 1st home now or delay?

  • Avatar ConfusedMD2020 
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    Example, this thread: 4 pages. 0 OP input.
    Mods close.

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    Lol yikes….can we keep it open a little bit longer.

    #218028 Reply
    Liked by ENT Doc
    Avatar ConfusedMD2020 
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    Ok. Enough for now. Again thanks for the responses. I’ve read all the responses here and Facebook. And I’ve had her read them as much as she can tolerate lol.  I understand most people here are simply very concerned because of the amount of debt that we have and legitimately just want to help and give us good advice. And for that I thank you. I’m going to sleep I think we can all agree that Renting wins in a landslide 10000000 to 0.

    #218029 Reply
    Avatar ConfusedMD2020 
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    And for future reference. Not everyone may be as Internet or forum savvy as you so go easy on em lol. It’s intimidating for some.

    #218030 Reply
    Avatar Tim 
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    “And I’ve had her read them as much as she can tolerate lol. ”
    Geez, that poooor spouse. For her own good, try 15 minute sessions 3x per day for 2 weeks. BEFORE meals. Don’t want her losing her nutrition. “Debt magnetism” is a mutation of “affluenza “.
    https://www.google.com/search?q=affluenza&ie=UTF-8&oe=UTF-8&hl=en-us&client=safari

    Good luck. Watch for any signs of remission.

    #218046 Reply
    Avatar Peds 
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    Ok. Enough for now. Again thanks for the responses. I’ve read all the responses here and Facebook. And I’ve had her read them as much as she can tolerate lol.  I understand most people here are simply very concerned because of the amount of debt that we have and legitimately just want to help and give us good advice. And for that I thank you. I’m going to sleep I think we can all agree that Renting wins in a landslide 10000000 to 0.

    Click to expand…

    and finally closure. thanks.

    #218067 Reply
    Avatar ConfusedMD2020 
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    Status: Physician
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    Joined: 05/27/2019

    Hey guys. This is the OP (the real OP sorta I guess… I’m the fiance who wanted to buy haha). Thanks to all of you who left reasonable comments and advice. I am not a fan of renting because I am a nester and like to customize my space for my needs. That’s why I wanted to, and still want, to buy a home. Regardless, we posted these questions to get multiple opinions as we PLAN for our future.

    I feel like I need to point out a some basic things to some of you about newcomers to this forum and basic decency. 1) I and others on this forum are doctors, not finance majors. It’s great that some of you know everything already but maybe don’t attack those of us who are just learning. If you feel triggered by our dumb questions then maybe just don’t respond.
    2) we posted on multiple sites to get the most info. After discussing some of the initial responses from this platform, I made some concessions and wanted to find out if our new plan was a better financial decision. I prefer to post on Facebook because responses are not anonymous and people choose to tone down the unnecessary attitudes that they feel emboldened to speak with on this forum
    3) I appreciate that some of you would like to speak with me further about my future plans on procreation but I did not ask for that advice and do not want it

    Anyways, I’ll let my man continue to mine this post for helpful tidbits and again, I do appreciate all of you who gave advice without the attitude.

    #218130 Reply
    CordMcNally CordMcNally 
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    I am not a fan of renting because I am a nester and like to customize my space for my needs. That’s why I wanted to, and still want, to buy a home.

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    That’s fine if that’s your reason but just understand that this has the potential to cost you A LOT of money as well as impact future decisions such as cutting back at one (or both) of your jobs, moving, vacationing, retiring, etc. I will say, it isn’t a good reason. You can customize any rented apartment or home nearly just as much as one that you own.

    1) I and others on this forum are doctors, not finance majors. It’s great that some of you know everything already but maybe don’t attack those of us who are just learning. If you feel triggered by our dumb questions then maybe just don’t respond.

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    I don’t think you got attacked…unless you consider people who disagree with your opinion as attacking you.

    I prefer to post on Facebook because responses are not anonymous and people choose to tone down the unnecessary attitudes that they feel emboldened to speak with on this forum

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    I don’t think you’re going to find too many people here who would say things differently in real life. Honest analysis shouldn’t be mistaken for being aggressive.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    Avatar EndoRobert 
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    Hey guys. This is the OP (the real OP sorta I guess… I’m the fiance who wanted to buy haha). Thanks to all of you who left reasonable comments and advice. I am not a fan of renting because I am a nester and like to customize my space for my needs. That’s why I wanted to, and still want, to buy a home. Regardless, we posted these questions to get multiple opinions as we PLAN for our future.

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    I think most people here would want you to get what you want. Whether that be an apartment or a 10,000sqft house (same with kids for that matter).  But you (soon to be you two) have an incredible amount of debt. You also have an incredible income. I doubt you stay in a 500k home very long. Just skip that step, live like two fellows, pay off the debt, save the downpayment for the million dollar home if you truly decide to stay in Atlanta, and give yourself options five years from now.

     

    If people seem/are overly harsh it’s almost always because they don’t want you to be where they have been or where they see colleagues are currently.  Do you realize how miserable it must be to be 45yo, working like crazy, making a household income of high six figures but you can’t cut back because you’re living hand to mouth? Run the amortization tables on $1.5m in debt over even 10 years; it’s a staggering amount!

    ENT Doc ENT Doc 
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    So what were the concessions you made? You stated you still want to buy a house.

    You realize you can “nest” in a rental too, right?

    How is Facebook the haven for rational and thoughtful commentary?

    #218258 Reply
    Avatar Tim 
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    Status: Accountant
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    Joined: 09/18/2018

    Two bright docs fixing to takeoff to Atlanta.

    A couple student loans, but the runway is clear and the skies are sunny. Both have carryon baggage (living expenses) but those are free. The loans are oversized luggage, checked and cost a little more.

    Did you overpack? No. Loans are your baggage. You can acquire more baggage when you land. Get a nice 5 piece set when you land (the house). One more storage space.
    Add the practice loans, more 5 piece baggage sets and more storage space.

    The loans stay with you everyday. It’s a PITA that seemed like a good idea at the time. Travel light and add to your loan portfolio when you need it.

    You can “rent” as big or fancy as you want, stuff it with custom furniture that the interior designer picked out.
    All without the “baggage” of the “starter house”.
    The next 5 years are a transition period. You don’t need 3 five piece luggage sets (Student loans, starter house, practice buy in’s). Forget what was purchased, they all get paid out of the same checking account. Even at zero % carrying the loans will be a PITA.

    Travel light, it’s easier and more enjoyable for the next five years and end up paying cash for the “starter house” that has morphed into the “perfect home” or choose your “forever house” (which never is forever). By the way, the interior decorated furniture and crap will end up being replaced (no baggage).

    Congratulations! Enjoy your journey.

    #218289 Reply
    Avatar FIREshrink 
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    Status: Physician
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    Joined: 01/11/2017

    Hippo. Rent for 3-5 years, til student loans are paid off, practice buy ins are paid off, you get to know Atlanta, and you get ready to have your first child. There is no rush. Renting is not throwing money away. It’s exchanging money for a hassle free roof over your head. Good deal at this stage of your life.

    #218302 Reply
    Avatar treesrock 
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    Status: Physician
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    I also agree you should rent.  And I agree with Budgetmaestra, no need for a 2br 2ba if it’s just your fiancé the first year, then just the two of you for the next few years after that.  Put those savings into the student loans.

    Live on a very tight budget because you’ve got a lot of expenses coming up in the next few years.

    And one final thought, put all of these loans on an amortization schedule.  I bet you’ll be surprised how much will already be accounted for each month to achieve the loan repayment goals you’ve set.

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    We will definitely be doing our best to live like residents. I’ve addressed the 2br thing above but yes. I agree

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    I agree with everyone on renting. I disagree about the bedroom thing though.  Who the hell wants to live in a 1br/1ba apartment when its reasonable to afford a 2BR?  As young attendings my spouse and I had friends in town all the time, and that second bedroom was in use both as a guest room and office.  Put a comfy futon in there for guest and set the rest up as a home office and you’re good to go.  Plus when you have people over for dinner who wants them going into your master bath?

    #218322 Reply
    Avatar FIREshrink 
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    Status: Physician
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    Joined: 01/11/2017
    Earnest refinancing bonus

    I think you probably already knew what the forum’s going to answer, especially if you’re a regular reader/lurker.

     

    Why would you prefer to pay a higher monthly amount (4.8K) in mortgage/interest/taxes, and be locked in a location, having to deal with the hassles of owning a house, rather than pay a smaller amount (2.5K) in rent? You will have no equity with a 0% down loan and be “throwing money away” on interest and taxes (though some of it might be deductible)

    Is the 700K in salary guaranteed, if you’re both just joining the practices?

    Click to expand…

    *Other half*

    We’re gonna be renting for sure. And yes 700k is guaranteed.

    Click to expand…

    Only things guaranteed in life are death and taxes.

    #218378 Reply
    Liked by Lordosis, ENT Doc
    hatton1 hatton1 
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    Status: Physician
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    OP many of the frequent posters on this forum are not really anonymous either.  I have met most of the docs who post here regularly.  Not sure why that makes facebook better.

    #218432 Reply
    Avatar Tangler 
    Participant
    Status: Physician
    Posts: 371
    Joined: 08/23/2018

    Here is the thing. I am 46. Many here are older than that. I messed up exactly as you are wanting to and I regret it.

    I bought a house for too much at the wrong time with nothing down after finishing fellowhip. I had 300k of debt, no down payment and i was starting a new job.

    I made the same mistake you are about to make.

    It was foolish of me and i deeply regret it.

    A resident asks: “ is that the right blood vessel to stick? “

    When you talk to a resident about to stick the carotid while attempting a central line do you tell them or just let them poke away? Do you say it firmly?

    You asked if you should poke the carotid with a big needle…….the answer is nope, bad idea.

    go to http://www.futureme.org and send yourself an email that will arrive in the future, say 8 years from now.

    In 8 years see if we were trying to be nasty or just trying to help.

    How did my home turn out? Sold 10 years later for a loss of 200k. Left my first job because it was crap after two years. Was a long distance land lord……tenants tore up house…….house did not appreciate as i hoped, money pit + time sink + stress + huge loss when sold 10 years later. I know, sounds impossible to you. Me too.

    I hate being wrong .

    like everyone i am a stubborn, overconfident, flawed, pattern seeking primate and i would also have been annoyed by this forum back when i made that ridiculous purchase.

    Don’t stick that. It is arterial.

    Rent yourself a really nice place. You deserve to live in a nice place.

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