Personal Finance

I want to buy the land next to my house for $1.7 million to build a playground for my kids - can I afford it?

David Beren

Published: March 16, 2025 10:33 am

One of the biggest advantages for anyone in the fat or chubby FIRE lifestyle (financial independence, retire early) is that they have the option to improve their lives in a meaningful way. This is especially true when buying land or a larger home that they can use for their children now and as an investment later. 

This is precisely the situation with one Redditor who posted in r/fatFIRE. With a net worth of approximately $12 million, this Redditor is considering a major financial opportunity with short-term and long-term benefits. To be more specific, this Redditor is considering buying the tear-down house next door and keeping the land. 

What an interesting opportunity! This Redditor could make a substantial profit in a few years all while giving the family’s three kids far more space to play right now. 

The Scenario 

Looking at this Redditor’s situation, we know that he is in his mid-40s with three children and lives in a very high-cost-of-living area. The family’s net worth is approximately $12 million, comprising $15 million in assets and a $3 million mortgage. As it stands, the family’s current house is worth about $4 million, so $1 million in equity is already included in their net worth. 

Personal numbers aside, this situation gets interesting because the house next door to the Redditor is a “tear down.” The Redditor is in a situation where he can buy the land for around $1.7 million and is seriously considering doing so. 

The belief is that this is not only a good investment opportunity that can be flipped in a couple of years, but would also increase the available lawn space for the kids to play in right now. The bonus is that they would also not have to deal with any new neighbors until they decide to put the land up for sale. 

Of course, with any large purchase, the Redditor is going back and forth about this as it’s not inexpensive, and he doesn’t want to make the wrong decision. Understandably, he’s considering whether he can resell the property down the road and make a profit or hold it until the family moves. It’s a great investment opportunity in his eyes, so he doesn’t want to pass it up either. 

Buy The House

It’s not all that often that I discover a Reddit comment section that’s mostly in universal agreement, but in the case of this Reddit thread, there are a lot of “just do it” responses. There are a questionable number of pseudo-financial advisors in this thread giving this Redditor advice, of which I am not one, so the honest answer is to get professional help if there is a genuine concern about what to do financially. 

One Redditor’s response arguably sums it up best: “What is the point of having that level of NW if you don’t do this when the opportunity arises?” 

The original poster responds that they are worried about the opportunity cost as they want to reach a net worth of $50 million. The problem here, and what the original poster has to clarify, is that they want to focus heavily on passive returns to build up wealth as they only work 15 hours or less per week and still earn $500,000 annually. 

Given everything the Redditor has clarified, it still doesn’t matter in the recommendation. While this $1.7 million would no longer be “liquid,” it wouldn’t be gone forever, as he could walk out of his current home and stare at this property daily. The bottom line is yes, this Redditor can afford it. They even can afford to buy the land two or three times over. 

If property value in his area holds firm or goes up, as most people expect the real estate market to do, there is very little reason not to make this purchase. In fact, another Redditor points out that the r/fatFIRE Reddit is full of posts from individuals in a similar situation who all regret not buying the house or lot next door. 

Just Do It

To be completely honest, it doesn’t even matter what number this Redditor wants to hit, but what does matter is that he takes advantage of a unique situation. Some of this is more important than wealth in that he will watch his kids play outside, be creative, and enjoy their youth before world problems sink in. In other words, if the question is whether he should buy the house immediately, the answer is do it.