I posted this on an old blog post but soon realized there was a whole forum where I could ask for advice.
I happened across this blog about 2 years ago and found it immensely refreshing. It got me taking a closer look, a much closer look, at all my spending and overall life decisions. I paid off student loans, got rid of cable, sold my car, cancelled my house cleaning, started going to Costco, et cetera...
Most of these decisions were easy. This on isn't. I would love to get some feedback/advice from fellow Mustachians.
Should I sell my house and buy a smaller one? Both my wife and I have hour long commutes (each way), tech jobs, in San Francisco. We both want to switch careers and work locally. We bought a major major fixer upper and I have been fixing it up for 4 years, hence the increase in value (that plus the insane market). We aren't really sure what to do, but we are thinking that it might be a good idea to sell our big house, even with the low property taxes and low interest rate, and downsize. But it's only a savings of $500 per month, and we actually could put a studio in and make $1200 or more in our current house. We've discussed it so much that we're just confused at this point. Would love some sound advice.
Current loan: $480,000
Current property taxes: $7000
Current interest rate: 3.75%
Total mortgage (including property taxes and insurance)= $2980
Estimated current home value: $1,300,000
Current home: 5 bedroom, 4 bath, with attached room that could be converted to studio apt. Double lot. Private road. Very private, on country road, serene. In the trees.
OR
Proposed load: $250,000
Proposed property taxes: $14,000
Current interest rate: 4.75%
Total mortgage (including property taxes and insurance)= $2400
New purchase price: $950,000
Potential new home: 3 bedroom, 2 batch, regular house in a subdivision
Is it worth it? Doubling my property taxes and getting into a loan with a higher interest rate seems like I could be making a bad move.
Lastly, we think about moving out of the area all of the time. We could pocket that $700,000, own a house outright in another state, and get to hang out with our 2 and 4 year olds, ride our bikes more often, et cetera.. We have no debt and a nice nest egg. The issue is that we are from the area, have family nearby, aging parents, and a community. It feels like home and we feel very conflicted about leaving it.
Any thoughts/advice would be appreciated.