Author Topic: Trading houses  (Read 557 times)

Mcsavesalot

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Trading houses
« on: June 14, 2020, 09:38:12 AM »
We currently live in a 400k house. We are getting ready to put it on the market and we've already bought our new house. The new house is 400 sq\ft smaller @ 1,600sq\ft. Both owned outright. After running the numbers it was a pretty big difference in monthly bills.
Here's the breakdown
$100,000 difference in house prices
Invested @6% for 10 years ends up being a $82,202 profit.
We plan on investing the difference in household bills, this is around $300 a month.
This would bring our 10 year profit at $95,524. Not to mention the having the 100k initial investment bringing the total invested over a 10 year to 195,524 instead of having that locked up in my primary.  It's almost an extra 1k a month in 10 years in our pocket to just live in a bit more of a modest house. I'd preferably live in an apartment and invest all all my capital but the wife wasn't too fond of that idea so a more humble house it is. Let me know if I'm over looking anything! I've also kicked around the idea of taking a 100k heloc to invest and use it like a mortgage but I don't know if that's something I want to do quite yet.