Another rent vs buy.
I am selling my house and will make between $450K to $475K.
I am moving to a high cost of living area. Buying a townhouse will be $750K and renting a similar townhouse will be $3200 a month.
1.Does having money to put down factor in the decision at all of which is financially better?
2.There is no real scenario where, if I am pretty sure I will move again in 1 to 5 years that buying is the better option? Unless I want to be a landlord and rent out the house I bought?
3.If I rent I think I would put the profit from the house sale in a high yield savings account, I think the one I have now is around 4.1%. I am a little scared to put the profit in VOO because I am scared of the volatility not knowing when I would need it. What is the school of thought on what to do with that money if I rent?
Side notes, I am retired, no kids at home, we have pensions that cover all expenses, there is no option of staying in my current home, The move will bring me closer to my kids and grandkids. I am not scared of the market; I have a 457 with $1.2million in a 2 fund portfolio 75% in VOO.
I have read the other threads where people say that it really is a lifestyle choice, and in my mind it feels very cool to minimalize my stuff to what can fit into a 20 foot Uhaul truck and move every 2 years to some place new and exciting, but I bet after the first move I would hate it.
I have seen the NY Times calculator, but some of the cost seem over inflated.
I am selling my house and will make between $450K to $475K.
I am moving to a high cost of living area. Buying a townhouse will be $750K and renting a similar townhouse will be $3200 a month.
1.Does having money to put down factor in the decision at all of which is financially better?
2.There is no real scenario where, if I am pretty sure I will move again in 1 to 5 years that buying is the better option? Unless I want to be a landlord and rent out the house I bought?
3.If I rent I think I would put the profit from the house sale in a high yield savings account, I think the one I have now is around 4.1%. I am a little scared to put the profit in VOO because I am scared of the volatility not knowing when I would need it. What is the school of thought on what to do with that money if I rent?
Side notes, I am retired, no kids at home, we have pensions that cover all expenses, there is no option of staying in my current home, The move will bring me closer to my kids and grandkids. I am not scared of the market; I have a 457 with $1.2million in a 2 fund portfolio 75% in VOO.
I have read the other threads where people say that it really is a lifestyle choice, and in my mind it feels very cool to minimalize my stuff to what can fit into a 20 foot Uhaul truck and move every 2 years to some place new and exciting, but I bet after the first move I would hate it.
I have seen the NY Times calculator, but some of the cost seem over inflated.
Statistics: Posted by 2ball — Sun Oct 27, 2024 9:33 pm — Replies 2 — Views 209