Continue to rent or buy house?
Sold house in Seattle Eastside last spring at the peak and been renting since then. Have liquid assets around 1.8m and TC 500k. Rent around 3300. Eventually I want to buy house again but so far renting hasn't been that bad (still prefer own house). I can easily get 2-4% guaranteed interest through some safe investment. So 36-72k per year which covers the rent roughly or even more. If I buy I would like to pay cash mostly because of the 7% interest rates. But then I won't get any investment income unless I buy cheaper like say 900k to 1.1m. But those are then in less desirable area or worse house. My previous house I sold it for 2.2m. So I'm used to bit nicer houses and areas.
If meta is really laying off people, probably just to keep some more liquid assets in the short term
Get a margin loan at 1.5-3.5%. Invest the money in treasuries . You get protected from margin call and tresuries give you return.
Omg. This is such a bad idea. Don't listen to this dude, OP. If the market keeps going down you have to put up more cash or sell stocks to cover your margin loan. Your money is locked in for much longer if you want the higher rates to cover margin loan interest too.
Can you read twitter? I said TREASURES BONDS!! You clearlt are one trick pony when it comes to investing.
Why didnât you 1031 exchange it?
Did consider it but it seemed that it mostly works for investment properties so I didn't know how to do it for primary residence.
you are asuming OP had a taxable gain, plus i dont think you can 1031 exchange your primary residence....
One thing to remember is renting is 100% interest.
yup youâre right but at 7% he might be paying a shit ton of interest too and he doesnât have any market crash issue in his mind. If I were him Iâd pay cash for a bargain and get a mortgage on it if the terms become favorable again in 2024, if that bargain doesnât exist yet just wait for it a year or 2 Then invest and beat interestâŚ
Yeah if maximizing money is the goal, maintain free cash flow by putting a large down payment on a house OP enjoys, targeting a particular monthly rate, is the way to go.
We are in a similar situation (albeit less cash). We are waiting hoping as interest rates keep going up we get more bang for our buck. Right now we are in a great and stable rental (no rent increases big house 5 min from work) so we donât really see a reason to buy now and put ourselves in a worse situation. We could be wrong but we think the prices will go down enough to get a better house at the price point we are targeting.
Just purchase a nice house. You can add a mortgage to it later and get a ton of cash for investment. Nobody will refund you the years you lost not enjoying your life.
Get a 5 year rate lock and you can still get it around 5.5% instead of 7.2%. But the catch is that the interests rate can be higher after 5 years. It might be worth a gamble though since 5 years is a long time.
Yoe? Is the 500k after stock đ?
10+, yes after stock crash.