<prompt> Human: I would like to preface this by acknowledging how extremely lucky I am. I grew up rather poor, navigated the community college and UC system somewhat blindly as a transfer student, and managed to luck into an amazing job. I worry that I take a lot of things for granted, but I know that I am doing better than most, for which I am extremely grateful.Heres my income, pre-tax incl. bonuses: 2012: 125k 2013: 170k 2014: 175k 2015: 200kPaychecks after-taxes but not including bonuses take-home: 7800monthSavings cashstocks: 400kTraditional IRA: 20kCurrent housing situation: fully-paid off townhome 300month for HOA I will never sell this place, but can rent it out for 1750month subtracting HOACurrent MONTHLY expenses: On average I spent 1-1.5k a month for food, travel, entertainment, and housing TOTALMisc details: No debts I was born and raised here and will likely spend the next 20 years here Single, but want to settle down in a house with a wifekids -- my current townhouse has noisy neighbors who smoke and keep me up at night. Its paid-off, so I can stay here for a few more years while they slowly chip away at my sanity, but Id like a bigger home and an actual yard for a family--first world problems!QUESTION 1 -- Should I save MORE tax-advantaged for retirement, and why?:I have only been adding 5500 to my traditional IRA each year. I have purposely not been putting money into tax-advantaged retirement accounts no 401k because my company does NOT match, and because I was always planning on buying a single-family house as opposed to the townhome. Am I being foolish with my strategy on liquid highly-taxed savings vs tax-advantaged retirement savings? I know I can reduce my taxable income, but what about the liquidity needed for wanting to buy a house and possibly retire early? Im paying a TON of taxes right now.QUESTION 2 -- Can I afford the proverbial 1m house in the SF Bay Area?:I am going to open houses but it is quite depressing that houses that were 500-750k a few years ago are now 800k-1.25m now. If I buy a 1m house with 20 down 200,000 w property tax of 10k a year included, these are the numbers I get: 30-year fixed at 3.8 is 4,561month -1750 rent 2,811month 15-year fixed at 3.5 is 6,552month -1750 rent 4,802monthI was also told I would save money with a mortgage tax deduction:Plugging in the numbers above, Your first year tax savings is 14,633. -- is this something I need to factor into my monthly mortgage calculations? If so, would my 2,811 30-year mortgage accounting for tax savings actually be 1,592month e.g. 2,811-14,63312??Any guidanceadvice would be appreciated. Thanks!  <response>: OK - fellow Bay Area resident in your income level... who has a condo and wants to buy another 1M home. Going to spew out some thoughts: Does your work have a Roth 401K option? At your income level it may be worth putting money there even if there is no match to take advantage of the Roth benefits. You dont need to save for retirement as I assume between liquid funds and your current home you have a 1M but youre getting hammered on taxes all around when thinking retirement. Your property taxes might be a bit low. Property taxes are about 1.25 in Santa Clara County - not sure where you are looking to buy but on a 1M property youre looking at 1,050 in property taxes per month. Think twice about becoming a landlord - not sure what kind of neighborhood your town-home is in... but tenants have rights and can be a headache. Have you thought if you would be better off from selling the property and having dividend income from a high dividend mutual fund instead? Once you leave this property - youll lose your cap gains exemption after 5 years as well. I would be inclined to sell if my mom didnt want to be my tenant after. Buying a home without the input of your SO can be problematic. Different people want different things for a 1M property. On the flip side, youll need to protect your assets so buying before a good pre-nup can help doPersonally I think you are on the cusp of being able to afford the house. I would recommend three things for you which may not be received well on rpersonalfinance ... 1. First - talk to a mortgage broker and see their thoughts on qualifying you. You have a lot of bonus income which may affect how heshe can qualify you. 2. Second - get a fixed fee financial advisor. Im in my first year with one based in SFSJ and have them in a passive role reviewing and validating my own math and decision making process. 3. Third, if you do decide to rent - get a property management company to do it for you. In the Bay Area - some charge about 5 on monthly gross rent but it spares you of the headaches. 