Author Topic: Should I sell my house to move closer to work?  (Read 1896 times)

civil

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Should I sell my house to move closer to work?
« on: November 02, 2015, 06:47:35 PM »
I've had my house for 2.5 years now. Ownership is okay, I love the house, and I wouldn't trade the learning curve of the past couple years, but there are a lot of expenses and I've been debating selling and moving closer to my new job. I'm having trouble wrapping my head around the numbers here. I cannot find a safe location where rent+utils is less than mortgage+utils in my area... so that's in favor of owning since at least I'm paying down principal. It's the repairs/maintenance that annoy me, averaging around $330/mo. I will likely remain in the area for 3 more years.

Market Value: 320,000
Original Purchase price: 290,000
Original Mortgage Amount: 265,000
Interest Rate: 3.5%
Mortgage Term: 30 years
Term remaining: 27.5 years
Amount remaining on mortgage: 240,000
Gross Rents: --
Principal and Interest (the P&I of your PITI - should match with the above info): 1190/mo
Taxes and Insurance (the T&I of your PITI): 451/mo
HOA costs: 120/year
Deferred maintenance notes: furnace is really old (>20 years). There is also a mini-split which was replaced recently.
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.): nope

Current commutes: 25-60min depending on traffic (me); boyfriend has 40-90min for one more year, then 25-60min starting late 2016
Commutes closer to work: 15min (me); 10-15min(boyfriend) going to 15min starting late 2016.
Rents in target area: $2000/mo. Rents have been increasing by about 6%/year.
Utils are about the same for rent vs own, about $280 for electric/water/internet. As a homeowner I also pay $250/yr for sewer
Target area would require an extra $75/mo each in gym membership (requirement for boyfriend's work)

How would you crunch the numbers? Should I move?

CowboyAndIndian

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Re: Should I sell my house to move closer to work?
« Reply #1 on: November 03, 2015, 06:33:50 AM »
.... I will likely remain in the area for 3 more years....

It does not make sense buying a house for 3 years.

There are expenses that you need for buying/selling (e.g brokers fees, lawyers, title insurance etc) which you will not recoup by living in the house for 3 years.

So, go ahead sell this house and then rent closer.

pbkmaine

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Re: Should I sell my house to move closer to work?
« Reply #2 on: November 03, 2015, 06:51:42 AM »
Agree. Sell and rent.


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Bearded Man

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Re: Should I sell my house to move closer to work?
« Reply #3 on: November 04, 2015, 10:21:04 AM »
Why not keep the house as a rental? Have you looked at the rents for a similar house to yours and compared it to what your mortgage is? No transaction costs, cash flow, and someone else pays down your mortgage, while you get tax benefits such as depreciation.

civil

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Re: Should I sell my house to move closer to work?
« Reply #4 on: November 04, 2015, 12:38:45 PM »
Why not keep the house as a rental? Have you looked at the rents for a similar house to yours and compared it to what your mortgage is? No transaction costs, cash flow, and someone else pays down your mortgage, while you get tax benefits such as depreciation.

I have considered it, but rents are about $1800-2300 for similar houses in my area now, which isn't enough to justify renting for me. The rents have gone down in the past year. I also can't stomach the thought of being a landlord for a full house. Renters around here are pretty rough on houses. Even renting out rooms was a crap shoot, and then I could check up on the house every day. It's not for me.