I've been struggling with a decision. Should I stay in my house or sell it and either move into a condo or buy a new house? There are pro's and con's for each.
I live in a rather modest home (especially compared to today's standards). We have one child and we could use a little more room.
I've been considering a larger home but my wife doesn't want a new larger house. She feels that a larger house is more to maintain (cleaning and yard work). I agree.
My wife would like to move into a town home or condo. She wants a maintenance free lifestyle. I am in total agreement with her except for one thing. I don't want another mortgage or rent payment.
We own our home free and clear. I love not having a mortgage payment. Mostly because of the freedom I had. If I quit my job (or got fired) tomorrow, I could work at a fast food restaurant and still maintain my lifestyle (at least for a year or two or three).
I keep coming back to the freedom aspect. I could certainly afford a larger house but I would lose my freedom. So for now, we are staying put in our starter home.
It's not easy. I feel social pressure just like everyone else. My friends are moving into larger homes. Some have asked me when I'm going to move. Luckily I'm antisocial so I don't take the pressure too seriously.
I think you could even make an argument that a larger/nicer home may appreciate faster. You might be right.
The one thing that could push us into a larger home is another child. We certainly aren't planning one right now but another child would almost force us to move.
I have to laugh when I see my friends move into a five bedroom house. I'm glad for their success but I wonder why a couple with one or no kids needs five bedrooms. I guess their wives want to fill every room with furniture (as one of my friends told me). Good luck with all that.
So for now, I'm staying put. The current house needs a few repairs. The bathroom could use an updating. However, the cost of these repairs and improvements doesn't come close to the cost of a new home.
In the end, I think you need to do what feels right for you. If you want a new larger home and can afford it then you should buy one.
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Comments
4 Comments so far
Why would you want to sell in this market? If you decide you want to move, you should consider renting your "modest" house. This plan would require that you take out a mortgage though…which hopefully you could pay for (or at least partially) with the rent payments you receive.
I think you would still be able to take the appreciation tax free so long as you sold it within 3 years from moving out (owner-occupied 24 of the last 60 months). Just an idea…
Real estate markets are localized so you may not necessarily need to fret about selling "in this market". Don't ignore the other half of the transaction- if it is a buyer's market for people shopping for your house it may likely be an even better buyer's market for you looking at a move-up home. Also, starter homes will almost always have buyers- its just a matter of price.
Take a good look at your local market and talk with a realtor. It might be a good time to buy.
I happen to live in a city which has experienced stable growth in home values. We didn't overly benefit from the property value boom. Subsequently, we haven't seen our values plunge. People move here because they want or need to live here- it surely isn't because of the weather or the lack of scenery. This small city isn't awash in speculative properties or second homes. A survey of lenders showed that a very small percentage of loans made were of the unconventional variety which is killing lenders and buyers of the paper.
Ever heard of the saying " He who laughs last laughs best?"
Who cares about keeping up with the Jones.
Money in the bank, and your home paid off is best. You are free!!!! You are out of the rat race!!!!! Good for YOU!!!!!!!!
People are also willing to trade homes for condos and vise versa. my friend at work just did that