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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127815  
Subject: Re: Is it crazy to try to buy in the Bay Area no Date: 5/23/2005 5:16 AM
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With good jobs and our rental situation described above, we've been saving roughly $3500-4000 a month to put toward a downpayment or other financial goals if we decide not to buy (that's after funding our IRAs and 401Ks).

From a financial perspective, this says a whole lot. You're putting away $40k or more a year on top of your 401k and IRAs. Continue that for 15 or 20 years, and you're done with the working life.

I'd say you need to weigh the ability to retire at 50 against your desire to own a house right now. Have you thought about where you would like to retire? If it's in the Bay area, perhaps taking the plunge into real estate might make some sense. Otherwise, I'd just keep on socking the money away. By the time you're ready to retire, you can probably pay cash for your retirement dream home.

Some other questions to ponder. Are you going to continue to save this kind of money indefinitely? Or are there plans (children, job/career changes) that would impact your ability to save? How stable are your jobs? Is there any chance either of your employers could go out of business in the forseeable future?

--Peter
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