Parking equity for 1 year after sale of home

[Petunia 100]

When I sold my last house, I parked the proceeds in my brokerage account. I went with 70% money market, 15% total stock market index, 15% total intl stock market 8ndex. That turned out profitably. But, I had just divorced and was uncertain when I would buy my next home. I didnt want to park it all in cash for what might turn out to be years.

[Florida2014]

Originally Posted by Mikala43

So far I think the money market is the way to go, that way if we DO see a house we want to buy, say at the 6 month mark, we can withdraw the money without penalty.

I was/am concerned about the housing market increasing in value at a higher rate than the return on the "parked" money.

I guess a little more info.... we are moving from Hawaii to the mainland and pretty much know the area we want to settle.

We would like to do the whole RV tour the states thing for awhile.

I suppose if home values are headed up at the time we would buy, and do the RV thing, as it would make more sense financially... I think.

If the housing market is flat, or going down, I wouldn't feel the same urgency to purchase.

I think that makes sense.

I wouldn't get too caught up in trying to time the housing market price trends. If housing goes up in 6 months, you may think that it will continue to go up and have a sense of urgency to buy, only to see prices drop for the foreseeable future immediately after purchasing.

It sounds like you have ample time here, I think you've got the right mindset....park it in a safe, liquid money market account and search for that perfect home and don't settle for something due to a perceived trend in one direction or the other.

[Mikala43]

Originally Posted by Florida2014

I wouldn't get too caught up in trying to time the housing market price trends. If housing goes up in 6 months, you may think that it will continue to go up and have a sense of urgency to buy, only to see prices drop for the foreseeable future immediately after purchasing.

It sounds like you have ample time here, I think you've got the right mindset....park it in a safe, liquid money market account and search for that perfect home and don't settle for something due to a perceived trend in one direction or the other.

Yeah, trying to time things IS an effort in futility, and I am certainly not knowledgeable enough to accurately predict anything (not sure anyone really is).

I feel better that I have a plan.