I agree with KlangFool who said that you can rent a nicer place. Sounds like you're already planning to move to a new rental. You can rent a SFH.Thanks for the reply. The cash is earning good interest in treasury bills so we’re all good there. I agree with your recommendation that maybe $350k or lower is a better price point at the moment but I don’t like those options and feel better about renting for what $350k gets me when buying.
So then my question is, if I can’t afford the house I want right now and it might take 3, 5, or more years to get what I want, should I just go back to investing and let the market decide when I get a house I like?
If I didn't know when I might buy a house and it could be 5+ years, then I wouldn't treat the money any differently than other new money. I would invest it according to my asset allocation (I only use stock funds in taxable accounts). I would ensure I'm investing as much as I can afford into my tax-advantaged accounts, before going to taxable.
That's kind of what I did a few years ago. I think it was 2019/2020, and I had an idea that I wanted to buy a house in the relatively near future, but I didn't know when that could be. I decided to invest all the cash I had at the time into stock funds (had accumulated during a period before I knew about investing) and invested new money into stock funds. I figured I could start saving cash when I was a year or so away from buying and supplement with investments as needed. I decided last spring that it was time and saved cash over the last year and am now in a position to buy, as soon as I can find a house that I like!
Statistics: Posted by tashnewbie — Wed Mar 27, 2024 7:36 am — Replies 10 — Views 605
