What to do with home sales proceeds? (Virginia Beach, Falls Church: real estate, renters)

[booztedgt]

I was a first time homebuyer 4 yrs ago in Virginia Beach, and now that my townhouse is under contract I'm about to be a first time homeseller. I moved to Falls Church and am currently renting, and still have 10 months left on my lease. I should consider myself lucky I suppose, but I will be making money on the sale, and when it's all over I'll have a nice chunk of change that I have no idea what to do with. I plan on using it as a downpayment for the next house I buy....but since I just moved to the area and I think prices are still outrageous here, the housing market is still dropping, and I'm not sure how long I'll stay here....buying a house here may not be the best decision. So I can either tuck it away in a safe 5% Money market account, or maybe buy an investment rental property. The stock market seems too volatile right now, and I don't want to risk losing basically my nest egg. What do people usually do in these situations? I figure with an investment property for rental I still have access to my capital (via a home equity LOC or loan), I'm making money off the rental and any price appreciation in the property (or risk depreciation in this market), plus with the housing market in bad shape I'm thinking there will be plenty of renters (like myself). What do you all think?

[twinmma]

get a financial advisor. that's what they are there for.

[pythagras]

ING has very good rates on savings accounts. Its not a accessible as money in your bank, but you can get the money or deposit it within a day or two. Savings might be the safest place if you plan on using the money in the next year or two (it sounds like you might when real estate bottoms). The economy might have a rough time this year, so I don't think a short term mutual-fund/stock market investment will pay off big returns.

[Fairfax Mom]

put it in something safe - like a CD - take it out in a year with no penalty - I might be wrong - but try not to trust "financial advisors" too too much - they want their commission - .
I remember when we made a profit on our home and got that big check and I put it in my bank account and for a little while I felt rich!

[scimitar12]

I agree with twinmma; get professional advice from a financial advisor. Getting 5% on your money isn't bad considering today's housing crash and the stock market, but get tyhe advice anyway.

I would keep renting. Renting isn't a bad way to go. Heck if you bought property now you will more than likely loose much of your down payment as house values continue to head south.

[car54]

I'll hold it for you!