We are wondering if we should buy a second home or continue putting money into savings.
Our current home is paid off and when we retire in 2.5 years we want to move to another city.
We have about $45,000 in a high yield saving account. We both work and have no house or car payments.
We found a home in a city we want to retire in and wonder if we should buy it now and go down for vacations there or wait and continue to put money in the bank at the high yield interest rate.
House prices could go up in the future but is that a good reason to buy now, have a house payment and not be able to put money money into savings.
When we retire in 2.5 years, we would sell our current home and pay off the new one. Is it smart to buy now or to wait and save money for when we actually retire?
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Are you looking for the perfect math answer or are you looking for someone to help you justify your decision? What we do for our clients who ask a question like this is to play “What if” scenarios on their financial plan with them. Play out the likely factors and really see the impact on your long term plan. If there is a glaring concern, it will be show itself visually for the client. If either path is sound, it becomes more of a feeling answer rather than a math answer. Hope that helps!