Buy or Postpone : Bay area housing confusion
For simplicity keeping everything in proportions.
TC : X ( 66% base and 33% stocks)
Interested House Prices : 4.5 - 5 times of TC
Liquid assets = Down payment I can pay : 15%
Backup after down payment : 401K (1/4 of tc)
Married, No kids, H1B, Solo earner
Location : Bay area
Age : 29
Is it worth taking a risk?
Things considered and hence getting confused.
Take the risk:
- Sooner the better
- Can not time the market, its the long term commitment
- Will help avoid unnecessary expenses since mortgage will keep things under control
- Emotional attachment
- Bay area prices wont go down. (there can be correction in the price but not much)
Do not take the risk:
- Wait till i can pay 20% down payment and also have some liquid assets as a back up
- Instead of living with stress, stay on rent, stay happy and get a good night sleep without worrying about economy, job security, mortgage
- let economy settle down : slowdown is world wide, stock market is flakey
I will keep updating above list.