: Rent vs Buy / All-Cash vs Low Interest Rate [Covid-19] My current landlord has indicated he wants to put the rental I live in on the market, which will likely have me looking for a new residence in the next 6-12 weeks (my

Vote Up Vote Down   0 Reactions

Login to give Reaction!

Rent vs Buy / All-Cash vs Low Interest Rate [Covid-19]
My current landlord has indicated he wants to put the rental I live in on the market, which will likely have me looking for a new residence in the next 6-12 weeks (my lease goes for 12 weeks, but my landlord has indicated he would be interested in having it end early). While I suspect my lease agreement gives me some protections, I don't think I want to be in a rental property if the landlord/realtor is actively showing the property during a pandemic. As such, I'm trying to stay on the 6 week timeline.

I'm currently weighing my options and would appreciate some input, especially given the uncertainty with the pandemic.

First question: Rent vs Buy?

Rent scenario. I look at another rental and see what happens with the housing market over the next 9-12 months This option doesn't seem super appealing, as I've wanted to own a home for a long time and don't like the idea of moving, only to have to move again down the road.
Buy scenario. I cross my fingers and hope to find a home to purchase on a very accelerated timetable. I've already contacted my realtor, who I worked with previously when I was looking at homes. They basically indicated the timelines would be very tight, but it's possible.

Second question. Mortgage at a very low interest rate vs All cash?

If I buy, should I pursue an "all-cash" purchase or seek a very low interest mortgage (15 year fixed?)? If I do go the "all-cash" option, it would likely exhaust most/all of my non-retirement savings. While things could be temporarily tight if I go with the all-cash option, I will have an influx of cash later this fall; which would replenish a 1+ year emergency fund.

In my ideal situation, I would renew my current lease, stay in my rental, and look to see what happens with the housing market over the next several months. That choice might not be up to me.

The one other option I'm considering is selling/storing my household goods and finding a very short-term rental, allowing myself to make all of these decisions on a slightly less aggressive timetable.

(0)

Login to post a comment!