Numbers on buying a place: Finding a Down Payment

I’ve been running the numbers to see if I could afford to buy a place. I have the following amounts outside of registered retirement accounts (in order of preference to use):

  1. Down payment savings: $24,709.14
  2. Next vehicle: $3,213.54
  3. Vacation savings: $2,458.49
  4. Emergency reserves: $18,037.51
  5. Taxable investments that are currently at a loss: $2,901.60
  6. Miscellaneous savings that would take some significant effort to retrieve: $7,005.37
  7. Taxable investments that are currently at a long-term gain: $2,587.44 (selling would cost $168 in long-term capital gains taxes in April plus $9 in commissions) – post-selling value would be $2,578.44
  8. Auto loan payments: $858.94 (not available – will use to make the last payment on the auto loan this month)

Some of the above funds are in CDs. I would currently receive $148.12 in interest (after early withdrawal penalties – yay Ally) for cashing in the CDs.

The first three are a no-brainer to consolidate to use towards a down payment, summing to $30,381.17. What makes me hesitant is that I would need to use up all of my emergency reserves to get even close to a $50,000 down payment – that would bring me up to $48,418.68. And then I would still need to either sell some of my taxable investments which I actually count as part of my retirement investments OR dip into the miscellaneous savings that are tricky to retrieve to surpass $50,000.

But! That doesn’t even include closing costs (a reasonable estimate seems to be $7,500) or paying the real estate agent. So does this math really add up then? It’s quite close, but is it close enough? Would it make sense to put down less than 20%? I would prefer to have $5,000 in savings left over AFTER making a down payment and paying closing costs and realtor’s fees.

Keep in mind that I don’t want to take possession until February 1st and I anticipate about $14,500 in positive cash flow that would go to savings between now and January 31st. I need to tell my apartment building if I am renewing my lease by mid-December or I have to renew for another year.

Readers, how much of a down payment would you feel comfortable putting down given the above numbers?

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