patrick.net

i would wait. the deleveraging is still taking place. i think prices will continue to fall in a bubbly area like Marin. inflation is basically zero now, so don't fret about inflation decreasing your purchasing power.

it sounds like you need to talk to a (good) financial adviser about your risk tolerance. your ability sounds high, but your willingness seems low, so you should be properly counseled to reconcile the difference. i would recommend a CFA or CFP because these credentials weed out a lot of people who know nothing (full disclosure: I am a CFA Level 3 candidate).

We had signed the purchase contract for 300 K the day Obama was elected - not by design, just happened. I was horrified by what was going on (in the economy) and weighed backing out through several sleepless nights up to the last moment driving to to the closing, but eventually signed: I have a habit of following through with whatever was planned and started pretty much no matter what. At least that was about the cheapest house we looked at - I congratulated myself on resisting the 400 K one we really liked.

We put 25% down, 15-yr. loan. I made a mental point of paying all back ASAP. In 3 months one of our cars (uninsured) was totaled. We fortunately got 10 K settlement from the other guy's company but the new one was 20 K - there goes much of the savings cushion. In a month my wife got pregnant. Just before she stopped working, we refi-d the house for 170 K at a lower rate as those dropped much over 2009 - there went the remaining savings. Then our other (old) car died. That was OK while wife was not working, but then we had to share a car for nearly a year while saving for a new one (40 K). Had to cash out some of my investment account for that. Last month as the clouds were gathering over the Wall St., I cashed most of the remaining stocks and paid off the loan balance of 95 K.

Now I drive past that 400 K house every day and regret not swinging it. Who could have thought?