Author Topic: Relocating for work. What to do with house sale proceeds.  (Read 657 times)

deviation01

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Relocating for work. What to do with house sale proceeds.
« on: March 14, 2019, 03:32:11 PM »
Hi everyone!  This is my first post and I am hoping to learn some valuable information.

Here is the down low.

Sale of house around $50k after closing costs

Debt:
Small loan $1,800.00 no interest no repayment date
School Loan $7,800.00 left at 5.75% interest rate
Personal loan: $8,500.00 left at 11% interest rate
Car Loan: $29,000.00 left at 4.25% interest rate

Liquidish Cash:
$5k in relocation bonus (most will be gone for a relo-cube and rental upfront payments)
$3k bonus from old job
$3.2k investment account



Scenario:
I am relocating due to a new job in a different state.  House is in the process of being sold and closing is in a few weeks.  My real question is, should I repay all debt and be left with about 3-5k in liquid cash?  Should I repay some debt?  I am planning on repaying school and personal loans but debating if I should pony up and fully pay the car leaving me debt free.  What say you great mustaches?

Any advise will be greatly appreciated.  I do plan on purchasing a house at some point in the new location as I dont like renting. 2-3 years.

Better Change

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Re: Relocating for work. What to do with house sale proceeds.
« Reply #1 on: March 15, 2019, 05:30:09 AM »
I would do as you're suggesting and pay off your school/personal loans with the higher interest rates.  I would then sell that ridiculous clown car that has a $29,000 loan (???!!!!) for something used and much cheaper that you own outright.  Add the proceeds to whatever is left from the sale of your home and 1) build up an emergency fund then 2) invest.

Fomerly known as something

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Re: Relocating for work. What to do with house sale proceeds.
« Reply #2 on: March 15, 2019, 05:44:13 AM »
Also if your small loan with no interest is a loan from family or friends it should be paid off yesterday.

FatFI2025

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Re: Relocating for work. What to do with house sale proceeds.
« Reply #3 on: March 15, 2019, 08:42:56 AM »
1) Get a rental home or apt at your new place and pay the security deposit
2) Payoff your current car loan with the $50K and get the pink slip
3) Buy a reliable car you can afford ~$10K
4) Sell the expensive car -- take your time to get a high price
5) Pay off the personal loan

...do all that within three months and then stick around MMM forums and you will be set for a bright financial future

I'm wondering about that $1.8K "loan." If it doesn't have repayment terms, isn't it a gift?

deviation01

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Re: Relocating for work. What to do with house sale proceeds.
« Reply #4 on: March 15, 2019, 02:02:29 PM »
Hi Everyone,

Thank you for the replies. The small personal loan is from my parents that is why it has no payment terms.  They don't want the money back but I insist to return it to them.  There is a long story attached to it but I would like to return the "favor."

The small caveat I didn't mention is that I use that car for my YouTube channel and Instagram.  The income from YouTube is nothing to bribe about but its a hobby that is providing something on the side.

However I do like the other suggestions for a financially bright future.  Lots to think about but I believe I am leaning towards paying everything off to be fully debt free and then building up emergency fund.