Hello all! ![:beer]( "beer")
I purchased a $260k home next to an expanding highway in a fast growing exurb area in late 2019 in order to be close to work in the nearby big city 30 min away. I refinanced for a 30 year 2.9% rate in 2020. Then COVID hit, and I started working remotely and for better pay. Then came a 7k fence upgrade because the dogs were getting out, then after home warranty expired, a 1k roof repair, $500 plumbing repair, a few broken appliances, 2 new babies and high risk medical bills, added insulation , upgraded electrical and solar (we own EV’s and live in a hot desert)... Basically, a lot has already been sunk into this home, and its still in need of cosmetic work.
Additionally, the general area, lifestyle, and vibes have changed for the worse since we purchased (what hasn’t changed since covid?). And now, our worsening parents health issues an hour away back home and all this “a home purchase is forever” talk all make us wish we were never succumbed to the social pressures of purchasing this home. Heck, it was our parents and friends / family that encouraged it, presumably out of tradition!!
Now we want out (for the health and happiness of our family), but are trying to plan around minimizing the financial hit from selling it off so early. The home is worth roughly 350-400k now so there is equity in it. I know I’m getting a good deal at 2.9%, and no way I could rent even a small apartment for less than my monthly mortgage payment and insurance.
On the bright side, the parents are getting their home expanded and upgraded with 400sq ft additional space, as well as grandson moving out which means we have a decent low cost living space available for us that’s in a better area.
General wisdom says a home purchase is for life (Or at least to stay for 10 years to minimize the pinch of the buying / selling costs.). But is there any way to minimize the pinch of selling so early?
Floating ideas:
1. Pay the loan down faster for the next few years using my extra funds sitting in taxable (there will be long term capital gains). Would it be OK to sell before 10 years then?
2. Rent the place out while we collect the mortgage payment and live back home again with the parents.
3. Tough it out and stay the full 10 years then sell when the area inevitably explodes with development.
4. Sell ASAP and just cut the losses now.
What would you do in our situation?
I purchased a $260k home next to an expanding highway in a fast growing exurb area in late 2019 in order to be close to work in the nearby big city 30 min away. I refinanced for a 30 year 2.9% rate in 2020. Then COVID hit, and I started working remotely and for better pay. Then came a 7k fence upgrade because the dogs were getting out, then after home warranty expired, a 1k roof repair, $500 plumbing repair, a few broken appliances, 2 new babies and high risk medical bills, added insulation , upgraded electrical and solar (we own EV’s and live in a hot desert)... Basically, a lot has already been sunk into this home, and its still in need of cosmetic work. Additionally, the general area, lifestyle, and vibes have changed for the worse since we purchased (what hasn’t changed since covid?). And now, our worsening parents health issues an hour away back home and all this “a home purchase is forever” talk all make us wish we were never succumbed to the social pressures of purchasing this home. Heck, it was our parents and friends / family that encouraged it, presumably out of tradition!!
Now we want out (for the health and happiness of our family), but are trying to plan around minimizing the financial hit from selling it off so early. The home is worth roughly 350-400k now so there is equity in it. I know I’m getting a good deal at 2.9%, and no way I could rent even a small apartment for less than my monthly mortgage payment and insurance.
On the bright side, the parents are getting their home expanded and upgraded with 400sq ft additional space, as well as grandson moving out which means we have a decent low cost living space available for us that’s in a better area.
General wisdom says a home purchase is for life (Or at least to stay for 10 years to minimize the pinch of the buying / selling costs.). But is there any way to minimize the pinch of selling so early?
Floating ideas:
1. Pay the loan down faster for the next few years using my extra funds sitting in taxable (there will be long term capital gains). Would it be OK to sell before 10 years then?
2. Rent the place out while we collect the mortgage payment and live back home again with the parents.
3. Tough it out and stay the full 10 years then sell when the area inevitably explodes with development.
4. Sell ASAP and just cut the losses now.
What would you do in our situation?
Statistics: Posted by eyedrop — Sun Mar 10, 2024 11:44 pm — Replies 24 — Views 1436