Cash Savings Vs Investments to buy home

Wayfair / IT
BossTown

Go to company page Wayfair IT

BossTown
Jul 15, 2021 7 Comments

Hey folks
I am looking for a home and would need some advice on how to do the down payment
I have around 100k in investments in Charles, Vanguard and Fidilety say around 20-25k each in their main ETFs and 20-30k Vested RSUs ( not long term)

I also have around 100k or May be more in cash

How should I do my down payment for my first home.
Recently had the baby so need some cash reserves as well

Tc: 225K/ 9yoe

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TOP 7 Comments
  • We kept all our income in cash over 2-3 years with the purpose of buying a house and I massively regretted it. Ended up buying with 300k in savings account. Could have been closer to 500k if I had invested it in a simple index fund during that period.
    Jul 16, 2021 0
  • Don’t keep any cash. Always invest into houses and stonks
    Jul 15, 2021 1
  • Wayfair / IT
    BossTown

    Go to company page Wayfair IT

    BossTown
    OP
    How much cash in hand is good balance?
    Jul 15, 2021 1
  • Amazon
    dYQM85

    Go to company page Amazon

    dYQM85
    We kept our down payment in cash for almost 2 years with the purpose of buying a house, was a terrible decision in hindsight. I think with Seattle and Bay Area, most buyers are paid in stock so their buying power is directly related to stock market. So in some sense keeping it in stock market is okay even if you are worried about a crash (if stocks crash it should also slow down the housing market in these places)
    Jul 16, 2021 0
  • VMware
    vmworry

    Go to company page VMware

    vmworry
    When we were looking for a house, we kept like 60% of our downpayment in cash. We were worried if there would be a crash right after our offer is accepted.
    Jul 15, 2021 0