We sold our house 6 weeks ago or so ago (significant cash out) and moved across the country, and we decided to rent for a bit and gamble that the market would collapse more. But we hate renting and we are already capitulating and putting an offer on a house we found and love. Even with our cash the mortgage will be about the same as before, due to the interest rates. So now we will be gambling that the interest rates will not continue up for long, and that they will decrease below their current level within a couple years. It feels wrong from an investment perspective, but it feels right from a life decision perspective, and it feels right from a security perspective (owning a place we can secure, and where we can grow a garden, etc.), and in the event of a currency crisis it would be bad to be super long cash. Side note: we don't have kids or pets, so it's just my wife and me; and we both have family nearby.
What would you do? And why?
Buy land with the cash, get your well, septic and electric, then live in a 5th wheel while you build or secure your house. There are really nice prefabs out there or if it's just the 2 of you, might go with something like Lancaster Log Cabins park model (my dream house if I didn't have a huge family). This way you avoid high interest rates and going into debt slavery to the (((banks))).
We talked about doing that as well. I don't think we'd do well in an RV. Half of our issue is that we've become spoiled :/
It has it's downsides, but you can spruce it up to be more homey, like putting a carport awning or pole barn over it, making a deck and outdoor kitchen, patio furniture. But I realize that's not everyone's cup of tea. I suspect they are just going to keep raising interest rates to "curb" inflation. What if the interest rates goes to the double digits?
Another option is looking specifically for property where the owner is willing to finance, you could negotiate a better rate. People who outright own their homes and don't want the tax burden are more likely to owner finance.
That's a great idea actually (people who are willing to finance). We got excited about one option we thought was that, but then we found out after the fact it was actually just a temporary ate buydown they were gonna pay for (aka nonsense).