Author Topic: Saving for a house  (Read 1622 times)

The Friendly Russian

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Saving for a house
« on: June 06, 2016, 03:54:36 PM »
Hello there,

I am completely new here and looking for your advice. We are debt free, and we don't have a house. Recently we have decided that we are going to save 3-5 years for a house.  So far we have saved $15K and every month we save $3000.

And we don't know where should we keep this money? Savings account? Money Market, or some investments?

What would you recommend?

Thanks

Bracken_Joy

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Re: Saving for a house
« Reply #1 on: June 06, 2016, 03:58:19 PM »
First of all- wow, that's quite a downpayment. I'm assuming you're in a high COL area?

As for where to save- there are a lot of high interest savings accounts. For a 3-5 year time horizon, I think market investments are a terrible idea. I think some folks do bonds? Most people on here recommend a higher interest savings account, like one on this list: https://www.nerdwallet.com/blog/banking/nerdwallets-best-savings-accounts/

Personally, we do CDs through our credit union, because we don't like to fuss with multiple banks and all that. Lower return, though.

The Friendly Russian

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Re: Saving for a house
« Reply #2 on: June 06, 2016, 04:03:26 PM »
Bracken_Joy thanks a lot. My wife and I we work in IT (deferent sectors though) -  which is good. But we live in SFBA, AC with insane taxes and rent - which is bad.

We've decided to move in CO in 6 month, wait for year, know the area and after that decide if we wanna save more, or just put down whatever we will have.

Bracken_Joy

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Re: Saving for a house
« Reply #3 on: June 06, 2016, 04:08:56 PM »
Bracken_Joy thanks a lot. My wife and I we work in IT (deferent sectors though) -  which is good. But we live in SFBA, AC with insane taxes and rent - which is bad.

We've decided to move in CO in 6 month, wait for year, know the area and after that decide if we wanna save more, or just put down whatever we will have.

A lot of abbreviations there- so you live in San Francisco Bay Area now (I am guessing?) a plan on moving to Colorado?

Be sure to run the Rent Vs. Buy calc http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html, particularly if you're on your way to Denver- I know the market is pretty bonkers there and renting may make more sense.

The Friendly Russian

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Re: Saving for a house
« Reply #4 on: June 06, 2016, 04:13:55 PM »

A lot of abbreviations there- so you live in San Francisco Bay Area now (I am guessing?) a plan on moving to Colorado?

Be sure to run the Rent Vs. Buy calc http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html, particularly if you're on your way to Denver- I know the market is pretty bonkers there and renting may make more sense.

Oh I am sorry. Yes we live in San Francisco Bay Area and moving to Colorado. Likely we are moving to Longmont, CO because my wife's company has an office there

Bracken_Joy

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Re: Saving for a house
« Reply #5 on: June 06, 2016, 04:22:52 PM »

A lot of abbreviations there- so you live in San Francisco Bay Area now (I am guessing?) a plan on moving to Colorado?

Be sure to run the Rent Vs. Buy calc http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html, particularly if you're on your way to Denver- I know the market is pretty bonkers there and renting may make more sense.

Oh I am sorry. Yes we live in San Francisco Bay Area and moving to Colorado. Likely we are moving to Longmont, CO because my wife's company has an office there

Headquarters =) That's where Mr Money Mustache himself lives. Still, Rent vs Buy calc is always a good idea =) Probably less bonkers than SF or Denver though!