I am a 35 year old software engineer working in San Francisco Bay Area.
I have $250,000 in liquid assets. Does it make sense to purchase a home
for $600,000 to $800,000 in Bay Area ?
thanks
pacman
<> wrote in message
news:
> I am a 35 year old software engineer working in San Francisco Bay Area.
> I have $250,000 in liquid assets. Does it make sense to purchase a home
> for $600,000 to $800,000 in Bay Area ?
Why ask here? What makes sense in terms of your individual goals,
intentions, ambitions and means? And of course, the market there, and your
preparatory financing for it.
In article <>,
wrote:
> I am a 35 year old software engineer working in San Francisco Bay Area.
> I have $250,000 in liquid assets. Does it make sense to purchase a home
> for $600,000 to $800,000 in Bay Area ?
If you do so, that would sure solve your problem of having
$250K in liquid assets. The problem is that we are in a market
peak right now. This could very well come back down. If
you were to buy today at $600K to $800K, you could find
yourself 5 years from now still oweing $400K to $600K on
a house that is worth only $300K to $400K. That would lose
your $250K in cash and leave you $100K upside down to boot.
Will this job let you work remotely? If so, then maybe
move to the heartland where you can pay cash for a nice
new home for $100K to $150K, have no house payments, and
still have $100K left over. You could live like a king
and still retire early.
-john-
--
============================================================ ==========
John A. Weeks III 952-432-2708
Newave Communications
============================================================ ==========
John A. Weeks III wrote:
> If you do so, that would sure solve your problem of having
> $250K in liquid assets.
Great line.
We bought 1.5 years ago in Santa Clara and were worried about buying at
the peak. A month ago, had a couple married friends over for dinner
that bought 1.5 years before us who said they had worried about the
same thing. But someday the music might stop and everyone will dive
for a chair.
Some people predict the housing bubble will pop, some say it won't,
some say it will but not everywhere. And there is a lot of demand for
the Bay Area jobs and weather.
On 19 Jul 2005 23:26:01 -0700, wrote:
>
>I am a 35 year old software engineer working in San Francisco Bay Area.
>I have $250,000 in liquid assets. Does it make sense to purchase a home
>for $600,000 to $800,000 in Bay Area ?
>thanks
>pacman
This is my opinion only - but we purchased our first home in Bay Area
in 1976. Wanted to purchased another home closer to work and with
more land, so we sold that one and purchased our current home in
Mountian View. During those 30 years, we have seen minor to moderate
(depending on the area) correction every 6-8 years, a big price
increase for 3-4 years, flat 1-2 years, 6-15% increase - cycles.
Even if you did purchase at high curve, the price will continue to
increase if you sit on it for 8 years. Anyway, that's what I've seen
these past 30 years here. This is said often, but buy a worst looking
home in better areas. Location is so important.
On 19 Jul 2005 23:26:01 -0700, wrote:
>
>I am a 35 year old software engineer working in San Francisco Bay Area.
>I have $250,000 in liquid assets. Does it make sense to purchase a home
>for $600,000 to $800,000 in Bay Area ?
>thanks
>pacman
No!
I think it is risky from the financial side of things. If I want a
house I have no choice.