We decided to start out the new year by "downsizing" our house and its utilities/maintenance expenses - and by taking a portion of the proceeds to pay off all outstanding debts.
Hubby is a realtor, so putting the house on the market was a snap. Within 3 days, we had two offers - and ended up with a contract for 5% over our list price. Closing is in mid-Feb. No, I haven't got a clue where we're going to live, but I'm feeling remarkably calm about the whole thing. It's weird.
It's like I'm about to be freed from the chains that have bound me for years. If only we didn't have a high school sophmore still living at home, there is absolutely no doubt what we'd be doing right now...putting family mementos and artwork we've collected in our travels in storage, selling every piece of furniture we own, and getting ready to travel the world while teaching online.
Alas, we still have the kid...and while he's ok with moving, he doesn't want to change schools, "unless we're moving to someplace cool, like Florida, Southern California, or Europe." (Yes, those were his words.)
My dilemma is this. We will have a very significant chunk of money left over after we pay off debts. With CD's paying 5.4%+ and my pessimism about the US economy leading me to believe that interest rates will continue to climb, coupled with our desire to sow our oats in two more years when we send the kid off, I'm thinking putting the equity in a safe place like CDs and renting isn't such a bad idea.
Hubby the realtor looked like he was about to call the priest to come perform an exorcism on me when I suggested such a thing. First, he began talking about "throwing rent money away." I asked him how that was any different than "throwing mortgage interest money away."
Hubby retorted with, "But you can deduct mortgage interest." I told him that was an argument for suckers. I then made an Excel spreadsheet comparing rent v. buy costs over the next two years. My conclusion was to rent. He's now agreeing with me.
I need a sanity check here...since I do need to find a new place for us to live. Please opine.