tl;dr: when do the numbers make sense to sell a house and buy a condo?
My wife and I bought a far too large house in the upper midwest last year. We bought big because we saw a lot of different directions in our lives at the time and we wanted the flexibility to make the house what we wanted. Namely, either her dad or my mom might move in with us, or we might have multiple kids that would "require" a large house (this place has a large unfinished basement and two other areas that would just need a door and a closet to become additional bedrooms).
Well, those possibilities have narrowed quite a bit. Her dad isn't going to move in (may be going into assisted living within year or two) and my mom is pretty set on moving to the PNW or Minneapolis to be with family, so we're left with "what if we have a kid". We're trying for our first right now but the way things are going it might not happen for a while or at all.
We keep seeing these listings for condos, all basically the same age and design (the builder must have churned them out in 2001ish). Lots of them are very well kept, open, airy, and still have 3bd/2ba and are ~1300sqft, which is about how much space we use now of our 2500sqft 3bd/3ba clown house.
The numbers on the current house:
- Bought house for $275k
- We've spent $27k on repairs (painting in and out, replaced all the flooring, replaced landscaping, replaced a broken window, replaced closet doors)
- It's going to need a new roof and a new AC compressor within the next five years
- Realtor WAG (before exterior paint and landscaping): $330k, Zillow Zestimate: $360k
The condos in the complex we keep coming back to in the same bedroom community we live in now are selling for about $160k for the design we want. HOA fee seems to be ~$250/mo. I haven't looked into the HOA's finances yet, but I assume it's fine since the units seem to be selling quickly.
Complications:
- We can't get a new mortgage until May 2016 at the earliest because the banks won't touch us until they see 2 years of self-employment income.
- If we sell before March 2016 we'll have to pay capital gains taxes on our rather substantial gains (~$5k of taxes)
- Once her dad isn't living alone in his house anymore we're going to start slow traveling but would like to keep a home base.
Questions:
- Does it make sense to exit this house next May and buy something smaller in the same area? Or should we wait until we know if we're going to move to a different area of the country?
- What drawbacks are there to living in an upper-level condo in an 8-plex? Obviously noise, can't pick our neighbors, etc.