How much money do I need to buy a house in cash?
Sounds like a rhetorical question, but it isn’t for me.
I am thinking of how much money I would need above and beyond the actual purchase price (plus all the fees and so on) of buying a house.
I’d need renovation / repair money (just in case), current living money, and an emergency stash at the very least.
Plus I’d also not want to put 90% of my net worth into a home.
So if I were to buy a $360,000 home and put down $180,000 in cash towards it, I would need:
- Home: $180,000
- Other Fees / Closing Costs: $20,000 (totally guessing at this number here)
- Repair Money: $10,000 (also guessing at this one)
- Current Living Money: $20,000
- Emergency Money: $50,000
..which would leave me with 30% of my net worth in liquid assets and 70% in my home, a ratio that would slowly go down over time as I build more liquid assets and my home becomes less and less important in my overall net worth picture.
TOTAL CASH REQUIRED TO BUY A HOME IN CASH:
This is doable. I can definitely do this, especially if I don’t feel the need to buy a home right now (which I don’t).
Am I missing anything?