Investing to save for a mortgage down payment

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Sukhoi

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Dec 5, 1999
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I have a good chunk of change to use as a down payment on a mortgage, but I am not planning on buying a house for another couple years or longer. My thought is to do 20% S&P 500 index fund, 40% medium term bond fund, 40% CDs. Is this too aggressive? Even if the stock market drops another 50%, I only lose 10% of my total investment while I have potential to make decent change if the stock market goes up a bit.

Also, are there any investment types I should be using in particular because this money is to be used as a first-time home buyer? I already max out the $5K/yr into my Roth IRA for retirement, so IRA type accounts are not available for this investment.
 
Jul 10, 2007
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buy now.

low interest rates + $8k credit + low housing prices + lots of foreclosures/short sales = great time
 

SampSon

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Jan 3, 2006
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No real investment advise from me unfortunately, but if you're not putting down 20% on a mortgage then only put down the minimum.
Not sure if you're actually able to buy a house right now, but rates may be significantly higher in a couple years, not too high but high enough where you may want to strongly consider getting in now.
 

Sukhoi

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Dec 5, 1999
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Yeah the timing sucks. I know I should be buying right now, but my personal situation won't let me. Somewhat questionable job status, possibly moving in a year, possibly getting married in a couple years, etc.
 

acheron

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May 27, 2008
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Originally posted by: Sukhoi
Yeah the timing sucks. I know I should be buying right now, but my personal situation won't let me. Somewhat questionable job status, possibly moving in a year, possibly getting married in a couple years, etc.

your timing won't suck as much as mine did when I bought a couple years ago. :)
 

SampSon

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Jan 3, 2006
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Originally posted by: Sukhoi
Yeah the timing sucks. I know I should be buying right now, but my personal situation won't let me. Somewhat questionable job status, possibly moving in a year, possibly getting married in a couple years, etc.
The moving and the job are definite factors.

Though purchasing a house while interest rates are at historic lows and the market is depressed should definitely trump getting married, no matter what the woman says.
 
Jul 10, 2007
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Originally posted by: Sukhoi
Yeah the timing sucks. I know I should be buying right now, but my personal situation won't let me. Somewhat questionable job status, possibly moving in a year, possibly getting married in a couple years, etc.

buy now and use it as an investment/rental property.
 
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