Here’s a question I’ve been hearing a lot this year… “I have a lot of equity in my home. I’m thinking about selling and putting that money in the bank before the market goes down again. Should I?”
Of course the answer is, it depends. You still need to live somewhere, so are you planning to rent, or buy a cheaper home? It makes sense to rent if you’ll be moving out of the area (because you’d be selling soon anyway). It also makes sense to rent if you can rent significantly cheaper than you can buy, and then you invest the difference. Or it makes sense to rent if you plan to share a home with someone else.
On the other hand, it makes sense to buy if you already want to downsize, or have your eye on a location that’s less expensive…and good properties are available.
Financial experts don’t recommend selling and then renting at a high amount if you’re simply planning to wait for the market to cool off. It may be many years before the market cools off enough to buy again at a lower price. And in that time, interest rates will likely rise, further offsetting any gain you might get through a lower price. (Of course, the situation could turn out to be different..no one knows for sure.)
Selling now might be the right decision for you, or not. My advice is to do a lot of research. First, reach out to me to find out what your house is worth. Pick my brain about where the market is going, thencompare rentals and potential homes to buy. If you decide to sell, we’ll cross that bridge when we get to it.