The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: scarab007 on July 26, 2013, 02:59:10 PM
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Hello Everyone,
Great forum and I am really new here, but wanted to get in on the action. Have a little scenario that I would like to get thoughts on.
Here goes: Wife purchased a condo in San Diego a few weeks before we started dating. This was about the time when it was real estate crazy and we all know what happened with that. Fast forward today and we still have the place today, about 7 years now. It went negative equity, but did not want to take the short sell hit on credit as we were buying other properties that were at a discount.
We now live in the bay area and have been renting the place for a few years with about 1k out of pocket a month. The market has actually caught up in that area and we could sell now and cover agent fees.
We keep going back and forth as we love San Diego and could see us vacationing when were older or living a few months out of the year. The condo can be paid off in a small amount of time and we could have it as a second home. Or should we sell it as we go negative 1k a month and get out of it. That money could be used for property up here or just go into savings?
Just confused on it and keep flip flopping on it. Thoughts?
JE
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If you are losing money on it every month, it would almost certainly make more sense to sell it, and apply the money you'll be keeping to your savings. I don't think it's worth throwing away money every month based on the possibility that you might one day retire there. Condos generally don't hold their value as well over the long term as freestanding homes (well, maybe in Manhattan they do), so aren't worth betting on appreciation, and you are stuck with HOA fees and HOA hassles for all eternity.
I say sell and invest.
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Thanks Hamster, I am on the same thinking as you. I just like that it's back to a value we can dump it and take the small loss we have already.
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Money leak? Plug it.
You could put that 1k away in investing and buy another home when you retire if you want a different local.
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So... if I were uber rich, I'd fly myself in my own plane to my vacation home. It's unlikely that is going to happen, so when I vacation, I rent a hotel room. ;)
If it's super important to you to have a second home base in San Diego -- that's one thing. But if you're looking to justify it as a cost savings, I think it's going to be hard to do.
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So... if I were uber rich, I'd fly myself in my own plane to my vacation home. It's unlikely that is going to happen, so when I vacation, I rent a hotel room. ;)
If it's super important to you to have a second home base in San Diego -- that's one thing. But if you're looking to justify it as a cost savings, I think it's going to be hard to do.
Ha, a plane to my vacation home would be great. Not super important to have a second home, more if were going to move back. We would already have a place as the area is nice and developing great.