To sell,or not to sell

[mjdavis0411]

I have the opportunity to sell my house which will allow the payoff of all my debt.  All of it.  With about 20k savings left.  We would rent from the new owner while we saved more for a larger downpayment and the perfect parcel of land.  We had no intentions to remain here til we died.  We were on a plan to be somewhere else in about 10 to 12 years.  This speeds up that timeline by about 10 years.  I am 45 and was raised to believe that home ownership was the proof of success.   I feel like that's just ridiculous...lol. I don't know if it's better to remain, with debt, and have to wait about 6 years before we could even start to safe or to be debt free and save faster with a big chunk to start. 

[Weisass]

I think  it is hard to answer this question without knowing more… about your goals, your finances, etc.  I think others have said it before on other posts, but it might be wise to consider a case study.

[Metalcat]

In the entire history of your time knowing your parents, have they ever had just silly or dumb ideas about things that make you shake your head?

If so, then why does it matter what they instilled in you when you were young about owning real estate.

Owning real estate doesn't matter. There are entire sophisticated  European regions where there's no expectation to own and it's not the norm.

Decide for yourself if the benefits of ownerships outweigh the downsides and risks.

You don't need permission from strangers on the internet to stop caring about owning a home. But if you need it, I'll happily give it. Home ownership is utterly meaningless unless it specifically benefits you in ways that matter to you.

Of it doesn't benefit you, then why do it???

Because your parents told you it was important when you were young and not experienced enough to formulate a position for yourself.

Your parents aren't the source of infallible wisdom, it only felt like that when you were too young to know better. So don't base your major adult decisions on beliefs from your youth that you only picked up because you lacked the knowledge to challenge them.

In short, do what's right for you, and if you want us to help, then really dig in and ask the questions that you need specific help with. Don't seek permission or approval from us. Only you can know what's right for you, and we can help you answer specific questions and explore specific risks that you might not be aware of.

But to make us useful, you have to use us to get the knowledge you need to make your own decisions. Not to help you make it.

[Morning Glory]

A cash out refi is another option,  if you plan on staying there a few years anyway and you think it would be easy to sell later. You could post numbers for both scenarios.

I will say I sleep much better now that I'm a renter.

[six-car-habit]

 It seems like the motivation on selling your current house is twofold -
a] Start saving now at a higher rate than you could if your kept the mortgage/ current home.
b] acquire money for a downpayment for a piece of "raw" land , which also could accelerate your moving to a different locale.

 If you buy a piece of land, unless you intend to just build a lean-to, or live out of a tent.... aren't you setting yourself up to be building a different style of house you desire, in a different place ?  Eventually this land purchase likely leads you to being a homeowner again.

Unless you never build on the property and just keep it for hunting/ camping / fishing - which at this point you'd be better off having that money in a retirement account, than wrapped up in a 'vacation' property.

It's not necessary to view building your own home on a piece of empty land as a proof of sucess, but it seems reasonable to be proud of that, if accomplished.

  Timeline and associated snafu's to build on raw land have a good chance to be longer + more frustrating than either renting or buying a 'finished' home.

[mjdavis0411]

I guess I made it look as if I was attempting to get permission from strangers,  which was not the intention.   I was looking more at what more financially educated people than I thought about becoming debt free vs owning a home for the sake of owning a home.  And to be honest,  now that I have actually typed that out and read it, I know my answer.   Thank you for your input.

[yachi]

There really isn't enough information to advise on whether this is a good decision for you or not.  This could be a good option in some situations, but a much worse option in others.  If I were buying your property and renting it back to you, I'd have to charge more in rent than my costs.  So you're trading your mortgage payment for a higher rent payment.

What other options do you have?
   Can you refinance instead and get enough out to pay these debts?
   Since you seem unable to save with your current debts, can you declare bankruptcy and make them go away?  Typically you can remain in your house, and keep your house equity.
   Are you making tons of money and better served by being frugal to pay off your debts?
   Can you refinance your debt into lower payments?
   Can you negotiate a lower payoff amount on your debt?

It sounds like you have been unable to save for 45 years.  That's not great.  But your plan isn't really to save for retirement after your house is sold.  It's to save for a new house on a great piece of land.  That's additional consumption, and will demand more of your income.

I think you should take a hard look at your income and your expenses to find a way to save more.

[Metalcat]

I guess I made it look as if I was attempting to get permission from strangers,  which was not the intention.   I was looking more at what more financially educated people than I thought about becoming debt free vs owning a home for the sake of owning a home.  And to be honest,  now that I have actually typed that out and read it, I know my answer.   Thank you for your input.

When you know what's right for you, you just know.

Come back and ask anything and everything in terms of details, but good on your for just knowing your own mind. A lot of people can't do that.