Author Topic: Best way to save for buying new house in 3 - 4 years?  (Read 1338 times)

mattdc79

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Best way to save for buying new house in 3 - 4 years?
« on: November 14, 2014, 09:01:32 PM »
My family and I are hoping to move to a mustachian sized, anti-mustachian priced home in a new city in 3 - 4 years. I'm confident the proceeds from the sale of our current home will cover at least a 25% down payment for this new home, but that would still leave us with a very significant monthly mortgage payment, so I am inclined to put down closer to 40 or 50%.

My question is where should I be putting our money for the next 3 - 4 years to save for this down payment?:

- TIPS
- Bond Index Fund
- Pay down current mortgage and use a bridge or home equity loan to buy the new house
- Savings Account
- Invest normally and just put 20-25% down and suck up the higher mortgage payments
- OR something else entirely

Any suggestions would be greatly appreciated.

Thank you

SwordGuy

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Re: Best way to save for buying new house in 3 - 4 years?
« Reply #1 on: November 14, 2014, 09:02:48 PM »
Have you looked at purchasing a foreclosure that needs a bit of fixing up?  You can end up saving 50% or more...

TheThirstyStag

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Re: Best way to save for buying new house in 3 - 4 years?
« Reply #2 on: November 14, 2014, 09:56:21 PM »
With a 3-4 year time frame, a bond index fund seems to be a good strategy.  Maybe do a 70/30 bond/equities mix  Anything longer and I would look into something more aggressive.