Need advice on financial situation. Looking to buy house in next 2-3 years.

New
SlowAF

New

SlowAF
3d 11 Comments

Trying to eventually put a down payment on the house in the Bay Area the next couple years…

Cash: $33k
Crypto: $15k
Roth IRA: $59k
Trad IRA: $28k

- recently got burned in my individual stock portfolio .. sold remaining and holding cash
- am I overleveraged too on my IRAs..? to me
not a big deal since I can withdraw Roth contributions w/o penalty
- now I’m aggressively saving cash for down payment .. thought about saving in an index fund but a little riskier…
- I feel like I should be saving more but I been enjoying life the last couple years lol

Open to any feedback on where to store my savings: cash, index funds

TC: 150k

#investments #personalfinance

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TOP 11 Comments
  • Amazon
    spottycat

    Go to company page Amazon

    spottycat
    Look into FHA loans. Can get in with 3.5% down, pay the PMI for a few years, then when the house appreciates enough to get you owing 80% of current value or less - refinance to kill the rest of the PMI
    2d 4
    • Thanks for explaining it to me. Does PMI kick in when the reverse happens? I mean the house price goes down.
      2d
    • Amazon
      spottycat

      Go to company page Amazon

      spottycat
      It's scheduled with your loan, usually for a 9 year period on a 30 year loan. The refinance is what makes it go away. As far as I know, one can't be added later if the house value drops, unless you refinance/second mortgage/etc at that time.
      2d
  • Build your stocks and then leverage your stocks without ever selling them. Try to get a gift from parents for down payment. Housing is seasonal, but you want to be ready to be when it is down
    2d 0
  • you need minimum 200k for 1m house as downpayment in bay area..

    so you need to save atleast 70k per year (without touching ur IRAs)

    plus, you should also think about increasing your TC.. I was in same boat as you 2-3 years ago
    3d 0
  • New
    MSFTTTT

    New

    MSFTTTT
    How much cash did you burn on stocks?
    3d 1
    • New
      SlowAF

      New

      SlowAF
      OP
      about 20k
      3d
  • New
    SlowAF

    New

    SlowAF
    OP
    Yeah I hear you. I’m trying to save, but my industry has a low-ish ceiling (marketing).. gonna try to take part time contract work to boost TC. It’s a struggle to juggle: saving for house, while enjoying my mid 20s, and having a social life (and GF)..in the Bay Area
    2d 0