Temporarily parking proceeds from home sale into PP ?

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Coffee
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Temporarily parking proceeds from home sale into PP ?

Post by Coffee »

Hi, Guys:

We own our home, free and clear.  But we're planning on selling it and then moving into a rental while we search for another home.  (Which could take anywhere from two to 14 months, I'd imagine?). 

Would it be better to put the proceeds of the home sale into our PP, or just park it in cash for now?

Thanks.
- Coffee.
"Now remember, when things look bad and it looks like you're not gonna make it, then you gotta get mean. I mean plumb, mad-dog mean. 'Cause if you lose your head and you give up then you neither live nor win. That's just the way it is. "
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MediumTex
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Re: Temporarily parking proceeds from home sale into PP ?

Post by MediumTex »

Given that you are apparently certain to need the money in 14 months or less, I would hold it in cash.

You might, however, be able to do well over this period with some combination of CDs and other cash-like instruments.
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moda0306
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Re: Temporarily parking proceeds from home sale into PP ?

Post by moda0306 »

100% REIT's... that way, if housing explodes during those months, you are in the best position to have the $$ necessary to get what you want.

JK!
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."

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AdamA
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Re: Temporarily parking proceeds from home sale into PP ?

Post by AdamA »

If you hurry, you can still place a bet on the NCAA finals with it. 
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Re: Temporarily parking proceeds from home sale into PP ?

Post by Gumby »

In all seriousness.. Although unlikely, it is possible to lose money in the PP over an 18 month period. Therefore, short term investments are more appropriate.
Nothing I say should be construed as advice or expertise. I am only sharing opinions which may or may not be applicable in any given case.
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