On a worldwide site, be very careful about any specific advice you get. The single biggest factor in whether or not to buy is your local market. For example, I live in a city where it's a great idea to buy a home now and rent it out. That's because the home represents a solid investment. There's a lot of new construction selling out quickly, many people are coming here, and it's inflation proof.
There are other parts of the country where this would be a terrible idea. As an investment, if you could take that money and put it towards a blue chip mutual fund, you could make a lot of interest over the next 5 or 10 years. In the wrong market, the value of your home would be volatile, and it could fall 50 percent over that same time period. Some markets are in a bubble, meaning they're guaranteed to adjust down.
It's a good problem to have! But do this responsibly. Talk to a realtor (ideally you'd know the person) to get an idea of housing trends. Then talk to your financial advisor (or get one if you don't have one. It doesn't cost anything and it sounds like you're ready for one). After this, you'll have a much better idea how to put your money to work.
There's some math involved here, because there are costs associated with renting your home and also closing costs, etc. Flip side, there would be rent costs if you decide to keep renting. So you'd factor this in, too. But honestly, this sounds fun to do your comparison shopping.
· 11 months ago