How Much to Put Down on Primary Residence

[Neil G.]

I'm having trouble deciding how much of a deposit I should put down for my primary residence (or potentially buy it in cash). I'm mainly concerned with opportunity costs of locking up a significant chunk of cash.

Considering the below notes, how might you approach this decision?

A) I'm planning on living in the property for roughly 5 years and then renting it out after me and my wife grow out of the place.

B) The total price of the home is about 25% of my net worth and liquidity isn't much of an issue.

C) I'm a high earner, so I shouldn't be in trouble locking up the cash.

D. My LTR break-even point would be with a 50% down payment (with a 30 yr mortgage at 6.5%)

My personal thoughts are that a 50% down payment on a 30 year mortgage might make some sense. So I can invest the other 50% and I will likely cashflow the property after I convert it to a LTR (I'll hopefully be able to refinance with a lower interest rate).

Please let me know if I'm missing something here or if anyone has any input or disagrees with this brief analysis.

Thank you!