We're selling a house in the states and will do very well (the downturn has not hit our neighborhood at all--doubled our investment in 5 years, not bad) and have a substantial downpayment but even hundreds of thousands of dollars here is really very little. But we also have investments that we could liquidate (not our retirement accounts) to pay the down payment--"total" liquidation would add about 80-85 percent to a downpayment. This would leave us with little reserve. But with a relatively low mortgage, we can save money prettyfast--right now we save pretty well--about 15 percent of after tax income--and that wouldn't change too much with the kinds of mortgage we're considering. Is that stupid?
Pros: more downpayment, nicer house, better neighborhood and/or less mortgage.
Cons: Little reserve. Investments seem to do well now. My wife feels it's insane to get rid of investments and it makes her nervous. She may be right.And related: given your feeling about the market, if you had the cash to buy a house now (we're looking east van) would you? Or does it make sense to keep money in the market until things turn...if they turn (about which I am somewhat doubtful, given what it looks like in our current neighborhood, Kits.)
What should this person do?