Author Topic: Re-calibrating Down Payment Needs  (Read 1086 times)

benjordan

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Re-calibrating Down Payment Needs
« on: December 09, 2015, 12:28:26 PM »
I currently have $100k in cash which I was planning on using as a down payment for a duplex in my area (Northern NJ) but I'm close to taking a job in Bermuda. I would be there for a minimum of 2 years, and upon returning to the U.S. I assume I'd rent at least a year.

The time horizon of "needing" the money is still relatively short at ~3 years.

I hate having the cash laying around doing nothing for me, is it crazy to invest like 20-30k in the stock market?

Jack

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Re: Re-calibrating Down Payment Needs
« Reply #1 on: December 09, 2015, 12:43:05 PM »
I hate having the cash laying around doing nothing for me, is it crazy to invest like 20-30k in the stock market?

I don't think it is; I think it's reasonable to treat it like a "conservative/fixed-income"-type portfolio: maybe 20% stocks, another chunk in bonds, and the rest cash or something.

Of course, that assumes you "need" buy a house in three years. if your attitude is cavalier and/or patient enough that if the market tanked you'd be okay with simply waiting for it to recover before buying the house (or buying a cheaper house, or buying a house with a lower-percentage down payment), then you could put even 100% into stocks and not worry.