Here's the scenario:

*75 year old lady sells property for $850,000
*Assumption: After paying off all debt, she has $775,000 remaining.

Q. Should she purchase a new home via an all cash offer?
Q. Should she put a "significant" down payment down and finance at the current rates.
Q. Should she move to a rental property?

Thanks in advance!

1. Fully retired
2. Potential short-term part-time employment, mainly to stay active.
3. Ideally, prefers to own a home, and intends to stay in it for the next ten years.

Does she have sufficient income from investments/retirement/SSA that she doesn't need any of the cash from the sale for living expenses… now or in 10 years?

I fully agree but wanted to get some unbiased opinions. To answer an earlier question, there is a teacher retirement account and that is it.

pay cash for something

Buford T. Justice said:

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Here's the scenario:

*75 year old lady sells property for $850,000
*Assumption: After paying off all debt, she has $775,000 remaining.

Q. Should she purchase a new home via an all cash offer?
Q. Should she put a "significant" down payment down and finance at the current rates.
Q. Should she move to a rental property?

Thanks in advance!

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Is the decision to sell already made? If she can stay out a few more years I would wait out to see how far IR decline in the next 24-36 months. It would change most posters answers significantly imho.

I personally wouldn't take out a mortgage with current rates at that age and the situation you described. I just did but drastically diff life situation.

As others have noted- lots of details that would factor into my thought process if this was my mother.

Depending on what she is ok to rent, with the given info, that's prob the best call and punt for a year or two. Much better ways to utilize that influx of cash than paying down 5.5-7% debt (have not checked recent mortgage rates since I moved)

She has sold and is in the process of moving out.
Her plan is to move from SE Texas to College Station, and there is a huge difference in price, as you all already know.

Not immediately buying a house, but intends to rent on a short-term basis to see what the options are in the fall, possibly into the spring.

I definitely advised not making a full cash offer on anything, and to only put down a down payment that might make the monthly mortgage very palatable.

But, at this age, I think that it might be better to rent.

Buford T. Justice said:

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She has sold and is in the process of moving out.
Her plan is to move from SE Texas to College Station, and there is a huge difference in price, as you all already know.

Not immediately buying a house, but intends to rent on a short-term basis to see what the options are in the fall, possibly into the spring.

I definitely advised not making a full cash offer on anything, and to only put down a down payment that might make the monthly mortgage very palatable.

But, at this age, I think that it might be better to rent.

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I'd think so out of simplicity at least for now. If money was cheap still it'd be different.

Only other thought I have is it depends what she's looking for. Link below is close to town. 100k or less down. $2500/month PI. Super ballpark to $3k/month ~$36k/year for the house.

Leaves her with (total high level numbers for example sake) $31.5k a year (10 year thinking).

No idea on pension/retirement/SS etc. but if that supplements to get well above what she's comfortable with having to spend a year then I think it's worth looking into now and certainly 2-3 yeats from now. She's refi when they come down anyway.

Sorry for the novel but had some fun on HAR thinking about this as my mom and in laws aren't there yet but will be before I know it.

https://s.hartech.io/66a6f04E2c14C

Rent for a couple years. It won't hurt. Renting could cost her $40,000 over next 2 years and no maintenance or upkeep. She can feel out the town more, get a feel for various locations. No reason to overpay for something with a high interest rate to boot. Invest the rest in ladder bonds, high yield savings accounts, etc., and keep cash on hand.

The social aspect, to me, is going to be a big factor.
If it was me, I would much rather be in an independent living facility, versus home alone.

Buy with a reverse mortgage. Interesting option. One time cash hit 30-40% from what I have been told, no payments, sell and recover equity or give it back, no issue either way. Find someone local and reputable, not someone on TV.