Background:
I've moved to the SF's bay area. around 3.5 years ago to work in a tech company, have a wife and small child and we're considering buying a condo or townhouse (houses are too ridiculously expensive and I assume they're more expensive to maintain).
The facts are:
- We are willing to pay at most 750k, which limits our options quite a bit but we prefer to err on the side of not living paycheck-by-paycheck. So, a 20% downpayment would be 150k;
- We're a single-income family and our yearly income before taxes is 230k. All expenses considered, we've been able to save ~4.5k per month during the last 3.5 years;
- We have ~125k in savings, plus ~60k in stock and we may also borrow ~45k from my 401k. If we borrow from my 401k, we could end up with 20k in savings + 60k in stock after the downpayment, part of which would be used to pay for the closing costs and the rest would become our emergency fund.
- We have no debt.
Do you think we should go forward with this? Are we underestimating the closing costs thus we'd need to save more for an emergency fund?
Submitted February 10, 2017 at 06:56PM by WhatIsMyMyPassAgain http://ift.tt/2l32GPE
