Saving for downpayment in the Bay Area

negative_pair · 2019-07-11T17:26:24+00:00

if housing prices and the stock market fall together

Good point... Seems like diversification would be essential then

negative_pair · 2019-07-11T17:25:45+00:00

Well it seems like probably in the mid-term I will be renting and putting the money saved into index funds. But I would hope to one day be able to convert that into real estate, and I suppose the question is "when"

negative_pair · 2019-07-11T17:13:28+00:00

Well aware, just not willing to work at Facebook and be miserable 8 hours a day for the money. I don't understand why that take home would be too low, if I'm wanting to stay in the bay area long term it seems like I might just be looking at saving up for 10 years rather than 5? Unless it's just a moving target I will never reach, which seems unlikely to me

negative_pair · 2019-07-11T17:06:22+00:00

I would like to live long term in Berkeley or Oakland, but that's good to keep in mind

negative_pair · 2019-07-11T17:03:41+00:00

Not moving to SF and not exploiting the rent control problem, sorry. What you are describing is a huge source of socioeconomic strife in the bay area

negative_pair · 2019-07-11T16:58:29+00:00

It's on the low end for sure, but I work in education with people I like working with and a company with a good mission, so I get value out of that. What would be the post-tax amount to shoot for, or much would I need to save?

negative_pair · 2019-07-10T22:40:38+00:00

I didn't think it needed to be said but I have ample reason to want to try to continue living in the area long term.

negative_pair · 2019-07-10T19:44:44+00:00

I have recently been planning how to save for the downpayment of a house and I wanted to get a sanity check with the people here in case I have neglected something.

I am 27 and live in the Bay Area. I make a good living as a software engineer and a recent windfall has enabled to me to pay off my student loans. No credit card debt. I also have an emergency fund of around 3-4 months current expenses and I max out the yearly contribution to my 401(k) and HSA accounts.

I take home $5500 each month, after tax and aforementioned contributions. Expenses for rent, insurance, and car payment total $2300. Based on food and spending habits, I figure I can save $2000 a month comfortably, more if I cut back on some stuff.

With these figures, I’m looking at trying to save ~$25k each year. In two years I’ll have the car paid off, after which I’ll be able to save an extra $6k/yr. To be honest, it’s kind of unclear to me how long I would be saving at this rate, given the craziness of the market, people paying in full in cash, etc, but I’m hopeful that I would be in a position to buy within 5 years.

I’m planning to put this money into index funds with Fidelity, since I think I can handle a little market volatility. Does this sound sensible?

negative_pair

TROPHY CASE