Author Topic: Weighing in - Stay or move to save and invest more?  (Read 1746 times)

Nudel

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Weighing in - Stay or move to save and invest more?
« on: July 29, 2013, 08:03:53 AM »
Question - what other things should I consider when debating to stay or move to save $.

Five years ago bought an 1800 sq ft place pre MMM. It's big for two people. Mortgage is paid off. Taxes are approx $3100/year. Had to do a bunch of work. Now have new interior paint job, new roof, hardwood flooring. Semi-detached was built in 1999.

Same approx distance from work are homes approx 1000-1200 sq ft for about $2500-$2700 taxes per year. These range in age built from 50's to 80's.

I am pondering do I consider moving to a less expensive house to invest the difference of $15-30K and to also save 400-600 per year in taxes? I've already adjusted for real estate fees, land transfer, mover. Both areas have grocery, library, other places I like to go within what I would consider to be walking or biking distance.

While ultimately I know that the decision is on my side of the keyboard. I'd like to hear what other pieces people people in similar situations have considered.

fiveoclockshadow

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Re: Weighing in - Stay or move to save and invest more?
« Reply #1 on: July 29, 2013, 08:35:17 AM »
One thing to consider is how long you think you will be in the area.  If you expect your location to be stable for a number of years then I think it makes some sense to downsize.  However, if you know or feel it is likely you will move anyway in the near term (say three to five years) you can just wait to downsize until you need to move anyway.  That way you don't pay any additional transaction costs.  It sound like you've got a good handle on all the costs involved so you should be able to figure out what the break-even point is as far as how long you need to stay in the new downsized house for it to be a net win.

SunshineGirl

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Re: Weighing in - Stay or move to save and invest more?
« Reply #2 on: July 29, 2013, 09:30:02 AM »
I think it depends on your entire financial picture, but I'd lean toward staying put. You've got the house to where you want it, and the difference in taxes is not that great. If it was several thousand, it would be more of a factor in my mind, but $3100 ain't bad! And if you take the transaction costs of selling and buying and divide that out into years of tax differential payments, it cancels out.

$50/month difference, basically. Ten years of paying the additional property tax is only $10K.

And you already know your neighborhood and your neighbors - your next neighbors could be jerks or there could be loud dogs, or...the list goes on.