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Financial Advice Q: Selling house, what to do with the money?

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Jr. Member
Dec 1, 2013
151 posts
35 upvotes

Financial Advice Q: Selling house, what to do with the money?

Just hoping to get some opinions here...

I recently purchased a pre-con home from a builder. (700K, close in Aug 2015)
Currently own a condo worth about 390K, mortgage is 180K


My original plan was to sell the condo just before the new home closing. But I am thinking about selling it right now and renting until my new place close. Reason being, if the housing price drops, I won't get double "hit" holding two properties at the same time...(it could go the other way, but I am rather risk adverse)

My question is, if I sell the condo right now, I will have about 200K in cash.
What would be a good place to put that money for one year? I do my own stocks trading, but I am not sure about putting this money in stock since I will need it for closing next year so I have a fairly low risk tolerance

What investment would you guys suggest? And what kinda of return do you think I can get in one year?
11 replies
Deal Addict
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Jan 2, 2012
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dexm1202 wrote: What investment would you guys suggest? And what kinda of return do you think I can get in one year?
For just 1 year and if you are completely risk-adverse, then just do a high-interest savings account. Maximize your TFSA to get as much tax-free growth as possible.

I think you can find accounts giving around 2-2.5%. Some places offer higher guaranteed rates for TFSA.
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Mar 23, 2009
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Personally, I would just wait until your house is built. It's a real PITA to move twice, esp. if you're doing it within 18 months.

But if you absolutely must sell, then yeah, a high-interest savings account.
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Jan 27, 2007
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When is your mortgage renewal?

You may have to pay a hefty penalty to get out of your current mortgage that would be higher than any potential investment gains.
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
Jr. Member
Dec 1, 2013
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Thanks for some of the suggestions.
I actually maxed out all my TFSA already.
dutchca wrote: When is your mortgage renewal?

You may have to pay a hefty penalty to get out of your current mortgage that would be higher than any potential investment gains.
actually..one reason I wanted to sell too is because my mortgage renewal is coming up in Sep this year.

I thought even if I renew my mortgage, I would have to apply for another mortgage again since my current mortgage is 180K, where else the new home mortgage is going to be 450K...(so I can't simply port the current mortgage over)
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Mar 8, 2004
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Was just recently in this situation. Maxed out TFSA. Topped up wife's RRSP. The rest is sitting in a HISA while I mull over buying a rental property....problem is that there's a lot of crap out there being marketed as good investments.
Banned
Nov 27, 2006
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dexm1202 wrote: Just hoping to get some opinions here...

I recently purchased a pre-con home from a builder. (700K, close in Aug 2015)
Currently own a condo worth about 390K, mortgage is 180K


My original plan was to sell the condo just before the new home closing. But I am thinking about selling it right now and renting until my new place close. Reason being, if the housing price drops, I won't get double "hit" holding two properties at the same time...(it could go the other way, but I am rather risk adverse)

My question is, if I sell the condo right now, I will have about 200K in cash.
What would be a good place to put that money for one year? I do my own stocks trading, but I am not sure about putting this money in stock since I will need it for closing next year so I have a fairly low risk tolerance

What investment would you guys suggest? And what kinda of return do you think I can get in one year?
wait wait wait wait wait.. let me get this straight


You're risk adverse but you do your own stock trading and want investment advice.

trolololol
Jr. Member
Oct 7, 2013
133 posts
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Toronto
Put it in a 1-year GIC?
I think interest rate is about 1.5%

But honestly, if you diversifies your investment properly, the downside risk is quite low.
Jr. Member
Oct 7, 2013
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sirex wrote: wait wait wait wait wait.. let me get this straight


You're risk adverse but you do your own stock trading and want investment advice.

trolololol
what does doing your own stock trading have anything to being risk adverse...? :facepalm:
many people are well educated enough to handle their own investment and does not need an investment or financial adviser to hold their hands and charge them some management fee

especially with the prevalence of ETF, mutual funds and funds managers are becoming less and less useful...
i guess for those who are too stupid (or too busy) to learn for themselves, financial advisers still serve their purpose...

I do my own investment and i am glad I did...to each their own i guess
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Mar 31, 2008
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Won't you need that 200k to put towards the 700k house? Pretty short time line. You're going to need to be conservative. Maybe a little bit of play money. But a very small portion should be allocated to that.
Jr. Member
Dec 1, 2013
151 posts
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EugW wrote: Personally, I would just wait until your house is built. It's a real PITA to move twice, esp. if you're doing it within 18 months.

But if you absolutely must sell, then yeah, a high-interest savings account.
The moving wont' bother me too much since I live alone and I drive a truck :lol:
I got very little furnitures and belonging in the house anyway.
sirex wrote: wait wait wait wait wait.. let me get this straight


You're risk adverse but you do your own stock trading and want investment advice.

trolololol
you seem rather clueless about finance and investing.. so don't bother

at1212b wrote: Won't you need that 200k to put towards the 700k house? Pretty short time line. You're going to need to be conservative. Maybe a little bit of play money. But a very small portion should be allocated to that.
Yup, hence why I am rather risk-adverse with that 200K. (My margin and TFSA is worth about 60K.. since they are "spare" money to me, I didn't mind doing more risky investment with them, but I need the 200K for closing costs)
menchieseveryday wrote: Put it in a 1-year GIC?
I think interest rate is about 1.5%

But honestly, if you diversifies your investment properly, the downside risk is quite low.
For 200K, would an index fund be a better option vs buying 10-15 different stocks in different industries? (I never invested in any index funds, etf, etc)
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Jan 2, 2012
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dexm1202 wrote: I didn't mind doing more risky investment with them, but I need the 200K for closing costs


For 200K, would an index fund be a better option vs buying 10-15 different stocks in different industries? (I never invested in any index funds, etf, etc)
Just my opinion, but if you truly "need" the 200K and couldn't deal with even a small % drop over 1 year, avoid the stock market and index funds altogether. Stick with guaranteed rates.

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