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alexm2816 t1_iuiwle1 wrote

>Should I be investing my down payment or have it in cash, CDs, or Treasuries?

I don't want to crush your dreams on supporting a million dollar home with a $100k income but considering your timeline is likely many years out investing your down payment likely serves the best growth potential. Certainly there is risk involved but the length of time is likely great enough that you can weather ups and downs before needing liquidity.

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figs1023 OP t1_iuixd2w wrote

It would technically be a $500,000 home, since it is being split equally between me and my partner. A $150,000 down payment leaves me with a $350,000 loan. That's a $2,446 monthly payment.

We would probably seek to find something where we could rent a room out (avg $1,000/month where we live, which would bring the loan down to $2,000/month for me), or buy the house and rent the entire thing out until our equity is high enough to afford to live in the whole house (or until rates are low enough to refinance and comfortably afford the monthly payments).

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darkhorsehance t1_iuj0nlb wrote

Don’t forget it’s going to cost you something to actually buy the house. In CA, most closing costs go to the seller but there are still buyer costs. You’ll also have a 12.5k property tax bill every year, homeowners insurance, flood/earthquake (maybe), gas/electric/garbage/water/internet/landscaping/etc, maintenance costs (on a million dollar house, expect around 10k a year, assuming no major work like roof), and furnishing the house when you move in.

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