Hi Blind
I am 32yo, live in the Bay and am a happy renter, I rent an apartment close to work spending $3000/mo (probably going up this year). I don’t have a family, I just have a long term girlfriend and probably am not going to have kids, not interested.
My net worth is 1.5M, all invested in Vanguard index funds (mostly VTI and VXUS and a small percentage of muni bonds so I have some dry powder to rebalance in if there’s a crash). I reinvest in the market all that’s left from my paycheck, so about 150-200k a year after tax.
I’m wondering if I should cash out some of my investments (~200-400k) and use it as a down payment buy a small property in the Bay Area, to diversify? I don’t need a house, but I like the fact that with a relatively small down payment I gain leverage by controlling a much larger asset that might appreciate with borrowed money.
What do you think?
Also, please don’t suggest buying a rental out of state etc. it’s not for me, I don’t want to deal with property managers or manage it myself. Maybe later in life once I quit the rat race.
Thanks!
comments
Saying that, the amount of asset you have you can think of buying a house for diversification. Negative side of considering house as an asset is it’s least liquid of all kinds of asset
Go figure how long it’ll take, it will heavily depends on market returns and job market...
Also Wondering if it's possible to ask for significant more salary every year also or that's not typically possible?
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