“Furniture in every room of the house? Took 3 years after moving in.” - Jim Dahle, M.D.
General observations only. Does not constitute tax, legal, or investment advice. Full disclaimer.
“Ideally, a fine painting, like a house, is neither a speculation nor an investment; it is a purchase. Its value consists solely of the pleasure and utility it provides now and in the future. The dividend the painting provides is of the non-financial variety.” - William Bernstein, M.D.
“One house, one spouse, one job. Divorce cuts your assets and future income in half. Do it twice and you'll likely never build wealth.” - Jim Dahle, M.D.
“For doctors the biggest culprit is usually that big fat Doctor House limiting your mortgage to two times your gross income will make a huge difference.” - Jim Dahle, M.D.
“We lust after a Beemer and a 6,000 square foot house, only to find that they quickly lose their allure, and that maintaining them commands way too much time and money. Worst of all, the cost of all this stuff necessities wasting our lives at jobs we despise and so prevents us from doing the things we love.” - William Bernstein, M.D.
“After four years, we upgraded to the big doctor house- 4400 sq ft, 100 mile view, lots of other doctors in the neighborhood, top three elementary schools in the state etc. Was it worth it to wait? Definitely.” - Jim Dahle, M.D.
“On average, a house is a terrible investment, because its real value doesn’t increase by much more than about 1% per year after inflation.” - William Bernstein, M.D.
“Most advice I have read recommends against residents buying a home unless you know you are going to stay in that area after residency, and even then, your concept of a ‘resident house’ is likely different than your concept of an ‘attending house’.” - Benjamin Meyer, M.D.
“When your income sucks, don’t buy a house. 47% of gross spent on housing was insane. No wonder we needed a co-signer.” - Jim Dahle, M.D.
“Downgrade Your Lifestyle. If you have already upgraded your lifestyle too much to be able to put $100K a year toward those loans and some hardcore budgeting can’t solve the problem, you may need to sell your cars and drive beaters or even sell your house and find a cheaper rental house for a few years.” - Jim Dahle, M.D.
“I recommend you save 20 percent of your gross income for retirement. If you got to save for college or a boat you want or another house or whatever that’s above and beyond the 20 percent.” - Jim Dahle, M.D.
“Like most other Americans you probably spend too much. You should be saving 20% of your gross income, and that doesn't count saving for college, a house down payment, a vacation, a new car, or student loan payments. Do ‘Future You’ a favor and leave her something to live on later.” - Jim Dahle, M.D.
“Buy a house when you are in a stable professional and social situation, not before. It's not the American Dream, it's not a no-brainer, it's not enough to just compare the mortgage payment to the rent payment, and renting is not throwing away money.” - Jim Dahle, M.D.
“Most calculations of a break-even period demonstrate that it typically takes three to five years just to break even when comparing buying and renting a house.” - Jim Dahle, M.D.
“You’ve got expenses, you have maintenance, you have upkeep, you have taxes to pay, so it’s really not a great investment. It’s an expense, and the less you can spend on your house, probably the better off you are.” - William Bernstein, M.D.
“Just because you are a doctor or your children deserve a nice house in a safe neighborhood, a safe car, and ‘the best’ when it comes to their education doesn’t mean you can actually afford to give them those things. Those are generally excuses for overspending.” - Jim Dahle, M.D.