Buy or Postpone : Bay area housing confusion

Nov 17, 2019 17 Comments

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.



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TOP 17 Comments
  • Uber fgd135
    Don't forget homeownership can come with some very expensive surprises (needing a new roof, discovering a foundation leak, broken appliances...)
    Nov 17, 2019 4
    • Uber fgd135
      Water seeping through your house's foundation, usually due to cracks or gaps in the concrete. V expensive to fix
      Nov 17, 2019
    • New / Project

      New Project

      You mean French drain? Roughly 10 k for 25x 25 feet basement. (Location depending)
      Nov 17, 2019
  • Facebook public2
    5x TC is a no brainer if you plan to live there and enjoy for at least 7 years. Lock that historical interest rate!
    Nov 17, 2019 0
  • Bose


    U cant afford it realistically if u cant pay 20%. Also on h1b if u r a solo earnrr its more risk
    Nov 17, 2019 0
  • Intel zgklodg
    Don’t buy in the Bay Area- the brand is that there are homeless everywhere with poop and needles on the street.
    Nov 17, 2019 5
    • Uber fgd135
      Was being sarcastic. I don't even have a car.
      Nov 17, 2019
    • Intel zgklodg
      Obvs, you Uber everywhere.
      Nov 17, 2019
  • Qualcomm mosfetqcom
    Sooner the better? If you have patience, you can always time the market because when it crashes, it really crashes. If this is your first time home purchase, then multiply your estimated expense by 1.5 to 2 and you will get the actual number. There are so much hidden expenses aside from the principal and interest.
    Nov 17, 2019 0
  • Apple Okidoki
    Can you rent out rooms in it and cover most of your mortgage if needed?
    Nov 17, 2019 1
    • Veritas vrtass
      We thought about those options. But with that filters the houses we are getting are not something where i can spend next 5-8 years. So we decided not to worry about that factor.
      Nov 17, 2019
  • Arista Networks rBi1nrp
    How much are other investments/net-worth and income from investments? How stable will they be in a downturn?
    Nov 19, 2019 0


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