jdh56osn in  
Software Engineer  

How much liquid cash should I have after down payment for a house

We are struggling to decide if we can and if we do, what should be our budget to buy a house in this market. We are looking at houses in the Bay Area. Can we afford anything right now, with the following assets? How much liquid cash should we hold on to after making the down payment. Is it a good idea to put less than 20% down for the time being (may be 15%) and reach the 20% after stock vesting/other bonuses? Any input will be helpful.
Thanks in advance!

Cash: $108,000
Stocks value after paying taxes: $174,830
Total liquid asset after taxes ~ $283,000

HH Base: $392,000
HH TC: $527,000

#mortgage #housing #sanfrancisco #bayarea #bayareahousing
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willkyddSales  
I would think about a worst plausible case scenario and how I can deal with it. For example one of you gets laid off and needs six to twelve months to get rehired and maybe gets a % TC cut. House drops x% in value and stocks drop y%. Nobody can tell you for sure what the future holds so you're going to pick your own figures for this worst case, recommendations are going to vary wildly. In my personal view California as a whole is not a great place for long term investment (i.e. house) since it is subject to net outflow of people and companies and an increasingly hostile tax environment - given how large an investment a house is, I would weigh this very heavily in my decision. But the comp and job opportunities are still arguably the best in the world right now so it's a balancing act.
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