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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: perigee on April 07, 2016, 12:42:38 PM

Title: Interesting Housing Dilemma
Post by: perigee on April 07, 2016, 12:42:38 PM
Selling my place with owner financing for right around a million, the kicker I will have the ability to stay here till it's paid for and the contract is for five years.  The reality is I don't like living here, it's far from everything and I have another empty chunk of land that would be more convenient.  The issue with that place is that it will eventually be sold to developers, so no sense in putting a permanent home on it. The cost to put a manufactured home with the size and features I want would probably eat up most of the $200k down payment that I would receive.

Do I stay and live rent free for five years?  Do I put a home on the other place and rent it out?  Do I move to the other place?  Do I buy a house in the city I really want to live in?

No real debt, monthly expenses are mainly just universal bills that we all face, utility, insurance, food etc..  Living on the other place would be great for tax reasons, but I am going to be hit by massive taxes even with the exemption.

Thanks for any thoughts or insights.
Title: Re: Interesting Housing Dilemma
Post by: forummm on April 07, 2016, 12:52:15 PM
You'd have to really not like living there to be willing to give up 5 years of free rent, and wasting $200k on a temporary house that will get demolished.
Title: Re: Interesting Housing Dilemma
Post by: former player on April 07, 2016, 12:59:37 PM
What happens to the house you are selling if you don't live in it?  Houses that are left empty tend to lose value, and if you let the buyer live there you lose your leverage for payment of $800k.    Personally, I'd be thinking hard about backing out of that deal and selling for less with the money up front.

I don't see any advantage in you living on the empty land that is to be developed.

I suspect that you have enough money to live somewhere you will be happy and no reason to live somewhere you will not be happy.  5 years is too long not to be happy.
Title: Re: Interesting Housing Dilemma
Post by: perigee on April 07, 2016, 03:57:01 PM
Thanks for the replies!

It was funny as I read them I agreed with both even though they are complete opposites!

The post was getting long so let me add then when I sold the empty property I would move the home to the area I want to live in forever.  I would then live in that till I built a custom home, at which point I would then rent out the manufactured home.

If I moved out the buyer would probably rent out the house.

Former player, the price is really as low as I am willing to go, I did tell the buyer I would need an additional $100k in the fall and I am waiting to hear back from him.

Thanks again for these helpful posts, if anyone else has anything to add, I would love to read it, even "here's what I would do" post would be great!