Unsurprisingly, 2017’s hot real estate market has carried over to 2018, and while the market isn’t getting any hotter, it’s also not getting any cooler. For more information, check out our blogs on why it’s good to be a seller right now and on why you should sell your home early in 2018.
While letting go of your property might be emotional and uncertain at first, this decision has several amazing perks. One particularly exciting perk: in today’s seller’s market, it’s likely that selling your home will lead to some extra cash. Here are a few creative suggestions concerning what to do with the cash and what you have to look forward to after selling your home.
(If you are looking to sell, let Pickett Street help you with this process. Get in touch with them at (425) 502-5397 or info@pickettstreet.com.)
1. Buy another home.
The most common choice for home sellers is to put the cash they’ve earned through a home sale toward a down payment on a new home. While you should carefully consider what’s right for you and for your family, buying another property is usually a smart, sound way to invest your cash.
2. Pay off high-interest debt.
Eliminating debt from your life can be a very wise and very liberating decision. High-interest debt from credit cards, in addition to student debt, can severely limit your choices and mobility. Using home sale cash to pay off this debt can open up several possibilities, including buying another home, traveling, or opening a retirement savings.
3. Open a growth mutual fund.
Financial experts note that keeping savings in a regular bank account can lead to this money losing value over time; the minimal interest rates for most savings accounts lag behind the rate of inflation. Instead, consider opening a growth mutual fund or adding to an existing retirement savings account.
Additionally, even if you have enough from a home sale to purchase a new house with cash, consider only paying the down payment. Because interest rates for mortgage are still relatively low, it might be financially smart to finance your new home and then invest the rest.
4. Explore.
My parents recently decided to sell their home and live in an RV in order to downsize and travel around the country for a couple of years. I also know a couple who is retiring, selling their home, and planning to live on their boat off the coast of southern California.
I find stories like these to be inspiring reminders that sometimes letting go of your current situation is the wisest and most exciting life decision you can make. For more information about retiring early and embarking on adventures like these, consider attending the next investor meet-up on March 28th that Pickett Street participates in. Each month, the Addicted to ROI group creates a casual space for investors who want to learn more about passive income streams, and this month’s meeting will focus on earning passive income through rental properties.
Finally, whatever you decide to do with your cash after selling, just make sure it fits with your unique financial needs, priorities, and goals. Contact Pickett Street ((425) 502-5397 or info@pickettstreet.com) to talk with a team of amazing and compassionate real estate experts about your home-selling or buying options.