Author Topic: Worth it to move?  (Read 3198 times)

huckney

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Worth it to move?
« on: July 15, 2015, 12:18:08 PM »
The most recent MMM on selling it if you wouldn't buy it again hit me right in the gut.

Currently living in a house that is much to large for me and my wife. Don't have any kids yet but that will change in roughly 2 years and we will also probably leave this area in 2 years as well. With those factors in mind I am considering selling my house (FSBO) and hoping to get 265K. Other notes - Currently owe 200K, property tax in 1.2%, HOA fee of $200 per year, house is only 2 years old.

Am considering buying a smaller house only a few streets away for 140K, no HOA, house built in 90's and staying in it at least until we move in 2 years.

I had projected that by making this move we would save roughly 10K over the next 2 years due to significantly lower mortgage and property tax payments - even after all the losses due to selling, loan fees etc.

Am I missing something major? Would I be crazy not to do this?

mozar

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Re: Worth it to move?
« Reply #1 on: July 15, 2015, 12:20:52 PM »
I think after your transaction fees, its not worth moving if you plan on moving again in two years.

huckney

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Re: Worth it to move?
« Reply #2 on: July 15, 2015, 12:31:30 PM »
I guess that's my biggest concern. My math was as follows:

Selling @265K and losing 3% meant I would take away 257K or roughly 57K in profit from house.

Buy house for 140K and put 57K down meant loan for 83K which translated to roughly 700/ month mortgage including taxes and insurance.

Current mortgage is 1321/ month which would mean about 15K in savings over the next 2 years. Selling the smaller house would results in a loss of about 4K of those savings but still leave at least 10K.

ysette9

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Re: Worth it to move?
« Reply #3 on: July 15, 2015, 12:42:21 PM »
How about selling and then renting down the street for two years before you leave the area? That way you are only getting hit with half of the transaction fees.

huckney

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Re: Worth it to move?
« Reply #4 on: July 15, 2015, 12:47:04 PM »
That's an excellent proposition but I don't think I could find anywhere to rent for 800/month to generate the same potential cost savings as buying. Having a fenced in back yard for our dog as well as being able to have a home crossfit gym are important and I'm not sure we could get by renting.

With that said... I should look harder for a rental.

StockBeard

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Re: Worth it to move?
« Reply #5 on: July 15, 2015, 01:36:54 PM »
I think after your transaction fees, its not worth moving if you plan on moving again in two years.
Agreed. The small benefit you described doesn't sound worth the hassle to me

huckney

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Re: Worth it to move?
« Reply #6 on: July 21, 2015, 02:01:15 PM »
So crazy update... realized I shouldn't be counting the losses from the sale of my house since I will have to sell that when I move either way. Also found some viable properties that are significantly closer to work. 10 minutes vs my current 30 minutes. With both of these factors thrown together we decided to sell and the house should be on the market by Friday. GOing to look at some houses this afternoon as well.

mozar

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Re: Worth it to move?
« Reply #7 on: July 21, 2015, 06:34:47 PM »
I would still rent though.

huckney

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Re: Worth it to move?
« Reply #8 on: July 24, 2015, 06:38:53 AM »
Buying allows me the opportunity to do some DIY home improvements (which I enjoy doing) as well as add a home crossfit gym. I could also potentially rent out the house I end up buying when it is time to move.

I assume you think I should rent due to the lost transaction fees of buyer/seller agent when I sell the smaller home right?

humbleMouse

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Re: Worth it to move?
« Reply #9 on: July 24, 2015, 06:54:19 AM »
Buying allows me the opportunity to do some DIY home improvements (which I enjoy doing) as well as add a home crossfit gym. I could also potentially rent out the house I end up buying when it is time to move.

I assume you think I should rent due to the lost transaction fees of buyer/seller agent when I sell the smaller home right?

You could look for a situation in which a landlord would lower rent based on your DIY work on the house.  I would ask about that, landlords love it when tenants actually make their unit nicer.

Also, I don't understand what you mean by "add a crossfit gym".  What does a crossfit gym require that you couldn't put in a rental?

I think people are saying rent because the costs and risks associated with buying a house and selling it 2 years later are very high.  These risks do not go away when you say "I might rent it out instead of sell it".