Housing

How much to down pay for $2M house with $1M liquid assets

Google orangeface
Mar 11

TC: $270k (household TC: $650k)

I am looking to purchase a house at about $2M. I have a liquid assets of $1M for down payment. $300k is in US stock/fund so I need to pay some tax. $700k sits in the foreign savings accounts with low interest rates. Any advice? Thanks in advance!

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  • New aqTjlsg
    You need to put down a minimum of 20% as a down payment so that you won't pay PMI. So that is $400k minimum.

    You need emergency fund for 2 to 3 years. So if you monthly spending is $10,000 including mortgage, then you need $240,000 emergency fund.

    $640,000 is already allocated. You only have about $300,000 left.

    Buy a cheaper home between 1.2 - 1.4 millions. You also save a lot with taxes.
    Mar 1110
    • Microsoft Dr. Root
      Wtf ! Why would you need a quarter mil in emergency man? Doesn't make any sense. No one with a tech background is gonna be out of a job in SV for more than a couple of months. And there's always home insurance that you can use for other issues anyway 🤷🏻‍♂️
      Mar 11
    • Facebook public2
      2 to 3 years rofl
      Mar 11
    • Nielsen / Eng
      TrilGates

      NielsenEng

      PRE
      Google
      TrilGatesmore
      You never know which direction life takes you. Quarter mil is not unreasonable. Even a million isn't.
      Mar 11
    • Facebook public2
      It is if you like money.
      Mar 11
    • New aqTjlsg
      If you buying a house for 2 millions, a quarter million emergency fund is not big.
      Mar 11
    • Microsoft / IT
      mb117

      MicrosoftIT

      PRE
      BitTitan
      mb117more
      If you get REALLY sick, think cancer or something like that, a year or two isn't unrealistic.

      Knowing you have money for it will actually make a difference in your recovery.

      I've known friends who have had extended breaks due to cancer and they both followed that rule. One was single and the other was married.

      Both were better off since they didn't need to worry about money.
      Mar 11
    • Google / OtherfbFf44
      I agree with OP. If you put 100k in that in safe investment and the rest in somewhat closer to stocks, you will have a blended safety plus losing less interest.
      Mar 11
    • Okay doomsday prepper, 2 to 3 year E fund. Better stock up on water purification, gasoline, and ammunition while you're at it op.
      Mar 12
    • Facebook public2
      If you get really sick you get disability. See that disability tax you pay with every paycheck...
      Mar 12
    • New
      cipher

      New

      PRE
      Splunk
      ciphermore
      If you have a terminal disease and have life insurance through work they will pay up to 90% of the policy amount prior to a qualifying event. Not to mention you will also receive LTD benefits and SSDI benefits.
      Mar 12
  • Intel thefocal
    700k down. Keep your stocks.
    Mar 110
  • Facebook public2
    20%, don't waste a dollar more. Leveraged money is the best!
    Mar 112
  • Glu Mobile PQSK63
    Some places like Sofi will do 15 or 10% with PMI. With the amount of liquidity, you can probably buy a SFH + rental property in Dublin/Walnut Creek.
    Mar 110
  • Microsoft gfba68
    I'd just put down 20% and invest the rest. You'll be stretched a bit on that TC but not too bad after a few years. Only question is what if you have kids and one of you wants to stay home for a few years? Money will be very tight.
    Mar 110
  • MobileIron loom
    Bringing 700K from India to US is next to impossible unless willing to pay 40% tax
    Mar 112
  • Amazon
    menthos

    Amazon

    PRE
    Microsoft, Oracle
    menthosmore
    Not more than 20% unless you pay more than 5%
    7d0
  • New aqTjlsg
    The more down payment you put down the more you should have emergency fund. If you put down 20%, the bank want to liquidate the moment you are late on your mortgage.
    Mar 120
  • Uber moober
    As others have said. Minimum to avoid additional fees. Which is 20%.
    Mar 110

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