I saw this $699K worth of 2 bedroom condominium in La Jolla, Ca. For a downpayment I have access to:
- $55K that I can get from the company stocks that I bought
- $15K emergency funds but this will come from my mutual funds
- 401K of $70K and ROTH IRA of about $19K.
I have $3K ESPP and RSU of $25K which I have to be in the company for 4 years for me to get this. I also have about $6K investment out of the country.
I earn about $120K/year before taxes. I lowered my 401K contribution to 8% from 11% to save a little more money for downpayment. However, I have 10% contribution to company stocks. I also contribute 3% to Roth IRA every month.
I am renting a condo for $1600/mo. I am single with no obligations. I am already 38 years of age and would like to have a sound investment. I have my sister and parents in Texas. My work is in San Diego.
$55K downpayment is not even 20% of the condo. I am not sure if this $699K condo is the right property for me considering my finances or should I get a different property where the $55K is the 20% of the property. I do not know whether La Jolla is a good place for me to live for life. I have been here for more than 3 years and found that this is very safe place though very expensive.
- Should I buy this property and ask the agent to lower it to $500K? In this case, the downpayment is still not 20% though. Or should I wait until I have 20% money for downpayment?
- Is $15K emergency funds enough to set aside in case I lose my job? or Should I wait until I have enough emergency funds?
- Is La Jolla, the right place to invest a 2 bedroom condo for $699K for me? The HOA is $495/month
I still want to be able to travel though so I want a mortgage that is not too much for me with some amount left for a travel at least once a year.
What should I do with my dream of buying my first condo?