Buying a home in bay area
Hey Blind community! How does one go about saving money to buy a house in 2-3 years, ideally in the bay area when you're starting out with $10k in savings? Higher TC is important but what else? Do you get a robo advisor? Pay 1% to a money manager? Get a high yield savings? All of the above and with what brand? What's possible? To the millionaires out there, how did you do it?
Following....I’m 30 and just got a 70% promotion to where I can save , no savings except 401k
Find a time machine, go back in time and put your money in NFLX circa 2009
Lol got jokes today Amazon
Buying a house back then would have similar effect.
Chase a start up that will IPO like crazy then you may have chance unless each person is making at least 250k each or you can go with a condo or shed.
Saving is not going to get you there nor is investing in diversified funds. You need 200k+ in savings combined with ability to handle a large monthly payment. Only possible if you get IPO lucky or are a couple earning high TC
Over 90% of it is just higher TC. The difference in interest rate when accounting for risk is negligible on that short of a timeline.
The cost of the house will vary A LOT by location. How many years it will take you is based on how much you make and how efficient you are at investing. You look up home prices for different areas online
If the time horizon is only 2-3 years then roboadvisers etc make no difference. You need to wait much longer and save up for a down payment. Or, ask your parents and see if they'll help.
1) Pre-IPO but early enough for huge valuation step up and liquidity event, and get very lucky 2) High TC job. If you have no family, then a $350k+ job should let you sock away a few hundred k in 2-3 years. If you have kids, etc. you will need a $500k+ job to support a family and sock away 150k+ a year in after tax dollars.
$10k savings? Did you miss a zero?
OP said starting out.
Need to start at $100k to stand a chance (e.g., rich parents)