Author Topic: Sell Townhome to Buy Rural Property  (Read 455 times)

Sonoma912

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Sell Townhome to Buy Rural Property
« on: March 20, 2017, 05:03:40 PM »
I currently live in the north bay, and have been debating myself non-stop about what to do with my current property. Let's start out with some facts:

1. 34years old
2. No debt besides the my mortgage.
3. I currently live in a 1200sqft town home(owe about 98k at 3.375% int), and neighboring units are currently selling for 350k+, so about 250k equity.
4. I purchased the property in 2009, but never planned on it being my forever home, and always had in mind to one day sell it in order to buy a rural property.

Since rural properties are also currently highly priced, should I:

1 Continue to pay down the mortgage and wait for a housing market correction? In the meantime continue saving/investing my salary excess.

2. Sell and buy a rural property while interest rates are still low? Problem with this is that I would be locking in higher property taxes, since I'll have a higher mortgage.

I guess what I'm afraid of is that properties values won't come back down, and my country living dream won't become a reality.
On the flipside, I can liquidate some of my savings accounts, pay off the town home, and trade the 9-5 for a part time job(semi-retire). Of course, with this scenario I would continue to live in my current property.

What you you do?

shaybro

  • 5 O'Clock Shadow
  • *
  • Posts: 42
  • Location: PDX Suburb
Re: Sell Townhome to Buy Rural Property
« Reply #1 on: March 20, 2017, 05:11:16 PM »
Would you quit your job if you moved to the country? If so, then consider purchasing land in a much cheaper state like Idaho, Montana, Nevada, or somewhere in the Midwest.

Sonoma912

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Re: Sell Townhome to Buy Rural Property
« Reply #2 on: March 20, 2017, 05:21:38 PM »
Shaybro- Since the rural property will cost more, I'll likely need to continue working full time until I'm 55-65. It's definitely a trade-off right now.

Unfortunately, moving out of state is not something that appeals to me at moment.

shaybro

  • 5 O'Clock Shadow
  • *
  • Posts: 42
  • Location: PDX Suburb
Re: Sell Townhome to Buy Rural Property
« Reply #3 on: March 21, 2017, 07:13:42 PM »
What's the advantage of moving away from the city if you aren't willing to commit to moving away? Are you idealizing what country living would be like without any experience? You can try renting a place in the country and renting out your current home. If you want to stay close to the Bay area but have the "benefits" of country living then I'm glad you are being realistic about working for the remainder of your best years.