Author Topic: Downpayment Saving 6-8 years  (Read 979 times)

RidetheRain

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Downpayment Saving 6-8 years
« on: March 01, 2017, 12:59:17 PM »
I'm hoping to purchase my first home when I'm ready to move out of the Big City. I'd like to have a decent downpayment on hand in 6-8 years plus money for the associated costs of buying a home. Since I have a horizon a bit longer than short term and a bit shorter than long term, I'm not really sure where I should put the savings.

I plan to set aside about 800/mo which will put me at around 57000 in six years. That will be more than enough for the size of home I'm looking for in the right area. Assuming inflation doesn't go completely out of control and housing prices rise like a poorly tied helium balloon. Here's to hoping!

Right now, I'm considering some of the Vanguard Lifestragety funds which may be more risky than I should be aiming. CDs which seem more or less worthless at current rates. Or just putting the money in a savings account (I have Ally Bank).

Is there something better out there I should try? All home buying advice starts with you having the downpayment. Or worse, explaining how to save money as if you're shovelling cash into a fire. Actual advice given: "Consolidate credit card debt with the lowest interest rate possible. That way some of your payments can be diverted to savings!"

Any ideas?

Joel

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Re: Downpayment Saving 6-8 years
« Reply #1 on: March 01, 2017, 01:06:13 PM »
If you decide to invest the funds, you have to be prepared to wait 2-3 years in case there is a market downtown. Maybe 5 years if you are very conservative.

I'm in the 2-3 year timeframe for house savings, so I have my money at Ally Bank and I am chasing checking/savings sign-up bonuses to park money in other locations temporarily (and earn more than 1%).

How firm is that 8-year timeframe?

RidetheRain

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Re: Downpayment Saving 6-8 years
« Reply #2 on: March 01, 2017, 01:21:49 PM »
8 years is an estimate, but I'd probably start compromising on house price if I was that close.


« Last Edit: March 01, 2017, 02:03:00 PM by RidetheRain »