Author Topic: Is it time to move??????  (Read 2164 times)

mommy214

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Is it time to move??????
« on: February 04, 2019, 05:45:49 PM »
Hi Everyone,
I am wondering what your thoughts on moving to a new home. Below are my financial facts and the situation. Here goes ................

I have lived in my current home for 12 years I bought  it for 95k in 2007. This is my first home and now I have a seven year old and a 3 year old taking p my 950 sq. In the past 12 years we have finished the basement added 1/2 bath, undated the kitchen and so on. I currently owe 52k that I refinanced two years ago for a 15 year fixed mortgage. My current house payment with taxes and insurance is 700 per month. I think my home is now worth 137,000k +/-.

More on my fiances
I make around 50k per year have 70k in investments 50k witch I can get my hands on. I have 23k in an Ally for savings. I would like to move to a large home for 200k +/- in a better school district. The kicker is my husband is currently in school not working and will not finish till December 2020.

My question is with all that above is it a good financial choice to move now or wait?



mommy214

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Is it time to move??????
« Reply #1 on: February 04, 2019, 05:53:33 PM »
Hi Everyone,
I am wondering what your thoughts on moving to a new home. Below are my financial facts and the situation. Here goes ................

I have lived in my current home for 12 years I bought  it for 95k in 2007. This is my first home and now I have a seven year old and a 3 year old taking p my 950 sq. In the past 12 years we have finished the basement added 1/2 bath, undated the kitchen and so on. I currently owe 52k that I refinanced two years ago for a 15 year fixed mortgage. My current house payment with taxes and insurance is 700 per month. I think my home is now worth 137,000k +/-.

More on my fiances
I make around 50k per year have 70k in investments 50k witch I can get my hands on. I have 23k in an Ally for savings. I would like to move to a large home for 200k +/- in a better school district. The kicker is my husband is currently in school not working and will not finish till December 2020.

My question is with all that above is it a good financial choice to move now or wait?



SunnyDays

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Re: Is it time to move??????
« Reply #2 on: February 04, 2019, 08:00:00 PM »
Doesn't seem like a good plan to move now.  You would be extending the amortization period considerably on a pricier house, not to mention the increased costs of property taxes, utilities, etc.  Your husband will be done school in only 2 years, and your kids are still young enough that the quality of schools shouldn't make a difference yet.  950 sq ft is not that small for 4 people.  I would wait until 2021 when your husband will likely be working again and see what kind of an income he's earning in order to make a more sound decision at that time.

Chrissy

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Re: Is it time to move??????
« Reply #3 on: February 04, 2019, 08:50:24 PM »
The safer choice, financially, is to wait a year--at least until your husband is out of college--possibly until he has a job.  However, if the school is bad or mediocre, I'd move now.  If it's good, but the other district is just better... I dunno, that's a tough one.

kimmarg

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Re: Is it time to move??????
« Reply #4 on: February 05, 2019, 02:40:50 AM »
I would say wait. You only have a mortgage for $52k right now and you're paying $700/month so going up to a $200k house is going to at least double if not triple your mortgage...with no additional income since your spouse is in school.  Keep the cheaper mortgage! Look into other ways to get your kids to a different school. $700/month buys a whole lotta kid enrichment classes if that's your worry.

Chrissy

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Re: Is it time to move??????
« Reply #5 on: February 05, 2019, 07:02:50 AM »
If she puts her current equity and her savings into the new house, then the new mortgage will be $100k, 30-yr.  Not that much more expensive because she's on a 15-yr mortgage right now.

I think the worrying factor is an emergency.  Buying a new place means they're not as resilient because they've put nearly everything into the new house.

AlexMar

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Re: Is it time to move??????
« Reply #6 on: February 05, 2019, 07:24:49 AM »
Financially, no.  Stay put.  It's not as bad as you probably think it is.

The REAL question is the school district.  Is the 7 yr olds school THAT bad or are you making it out to be worse than it is to justify moving?  I live in an area with truly bad schools and it's a big deal.  So I get it.  But just make sure it's not just a bad grade on a website driving your decision.  If you are having genuine issues, then you may very well need to move.  OR can you get your child transferred without moving?

mommy214

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Re: Is it time to move??????
« Reply #7 on: February 05, 2019, 07:53:13 AM »
Hi everyone,
Thank you so much for the feed back. So the school could be tolerated for a year or two more its not the education i feel there are no opportunities to make friends for my kids here. With that said we could stay a few more years and it would not kill us.

My thought process was this:
sell my current home for for 137k then subtract my mortgage 50k that leaves me 87k to put into a new house. After i subtract closing and selling I would like to put about 60k down on a larger house. I believe my payment would only go up 250 per month and be around 1000.00.

Also I have 23k in an emergency fund so I think I have that covered. I think my home value is at its peak and i would like to capitalize well the getting is good.

Also I did not say earlier my husband does have a part time job so we are not down money because I worked par time and now I work full time.

We current live on  50k per year and all his pay is extra.

Thank you so much for the feed back I am loving all the help  thank you again

AlexMar

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Re: Is it time to move??????
« Reply #8 on: February 05, 2019, 08:08:46 AM »
So the school is fine.  Don't move.  No opportunities to make friends, I find that a little odd.  I'm not sure what to make of it.  Why would packing up and moving be so much different?  I understand if your child is having difficulty making friends... but no opportunity to do so?  If the education is fine, then that means you should stay right where you are.

One of the biggest challenges with FIRE is lifestyle inflation.  Which is exactly what you are wanting to do.  "It's only $250 per month!", "My child may find it easier to make friends" , "Having a 3rd bathroom is really important!"...  You can absolutely come up with a million reasons why moving is the right idea.

My suggestion would be to do FIRE math.  Meaning, how many more years of employment will this move cost you.  Then say "Ok, do I think it's worth working 4 extra years to hit my FIRE goals to have a little bigger house?"  Maybe it is.  Maybe it isn't.  But you aren't going to find a lot of people telling you to move because you want a little bigger house when you seem to already have a house that fits your needs.  Don't stress it though.  Do what is right for you, but make sure you clearly understand how this effects longer term financial goals.  Talking about monthly payment increases and if you can "afford it" is a habit you want to get out of.  Don't view things that way.

mommy214

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Re: Is it time to move??????
« Reply #9 on: February 05, 2019, 08:47:08 AM »
I hear you all loud and clear donít move :). It hard for me to accept because there are so many issues with weíre we live I could live  with them probbly but do I want to? I could list them all the last factor I have to offer is my son will be out of daycare and starting school. I pay about 500 per month for his daycare and think that when he is done I could put that into a new house.

One more peice if info we live right outside of Detroit MI. It was fine when we did not have kids.

Does not seem like Iím going to convince you all itís a good idea to movie ha ha my husband does not want to move.
This has been Helpful to get a different perspective thanks again.

AlexMar

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Re: Is it time to move??????
« Reply #10 on: February 05, 2019, 11:11:10 AM »
I hear you all loud and clear donít move :). It hard for me to accept because there are so many issues with weíre we live I could live  with them probbly but do I want to? I could list them all the last factor I have to offer is my son will be out of daycare and starting school. I pay about 500 per month for his daycare and think that when he is done I could put that into a new house.

One more peice if info we live right outside of Detroit MI. It was fine when we did not have kids.

Does not seem like Iím going to convince you all itís a good idea to movie ha ha my husband does not want to move.
This has been Helpful to get a different perspective thanks again.

You can convince me it's ok to move!  People move.  There are perfectly valid reasons to do so.  I would say that your husband not wanting to move is telling.  It suggests that your living situation is perfectly fine, at least in his opinion.  That $500/mo would fully fund an IRA, by the way.  I'll reiterate it again, too - LIFESTYLE INFLATION.  We just saved $500... put it towards a new house.  I just got a raise, put it towards a new car.... etc.  Lifestyle Inflation is what will screw you out of your financial goals.  It's ok to inflate a little bit depending on your starting point, but be VERY aware of it.

mm1970

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Re: Is it time to move??????
« Reply #11 on: February 05, 2019, 11:58:17 AM »
I hear you all loud and clear donít move :). It hard for me to accept because there are so many issues with weíre we live I could live  with them probbly but do I want to? I could list them all the last factor I have to offer is my son will be out of daycare and starting school. I pay about 500 per month for his daycare and think that when he is done I could put that into a new house.

One more peice if info we live right outside of Detroit MI. It was fine when we did not have kids.

Does not seem like Iím going to convince you all itís a good idea to movie ha ha my husband does not want to move.
This has been Helpful to get a different perspective thanks again.

I wouldn't move, but inertia is a powerful force for me.

I'd wait until your husband finishes school and chooses a FT job.  Seems more sensible to wait until you are both somewhat "settled" into work.

mommy214

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Re: Is it time to move??????
« Reply #12 on: February 05, 2019, 12:49:12 PM »
In all fairness my husband would never move he loves his house. :)

So most of the time we get raises or extra cash we do save it. I am a saving maniac. That is why I have staid in this house for so long.

My biggest motivation for moving is school district, neighborhood and function of my home. Im not sure if my husband getting a FT job really matters. Because he has had them in the past and the income we make is the same 80k +/- per year. Either he works full time or I do. The other thought I have is what if he was a stay at home dad there would only be one income mine.  So the way I see it our income will be the same no mater what house we live in.

I have about 70k in investments already and can only put (and don't quote me 5k each year into an IRA cash)? I do that already.

The idea is can I take my equity and roll it into a larger home in a better school district with a bigger yard. :) I am grasping a straws now!!!!!!

THATS ALL I GOT GUYS :)

This has really been great feed back thanks again

Mustache ride

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Re: Is it time to move??????
« Reply #13 on: February 05, 2019, 12:51:56 PM »
You're not capitalizing on your homes peak value if you are planning to buy a more expensive one right after. All thatís doing is selling and then buying at the peak. If anything youíre increasing your ďriskĒ, as a more expensive house will probably decrease in value more in a downturn. Someone above already called this out, but itís worrisome you see this ďextraĒ $500 a month as something that can be spent, particularly because you donít mention anything about having a retirement account.

mommy214

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Re: Is it time to move??????
« Reply #14 on: February 05, 2019, 01:02:41 PM »
I do have a retirement account I have a company managing it for me. I have 50K in investments and 20k+/- in a retirement account, I also have 23k in an ally account for emergency.

I have no intentions of touching this cash.

 This is all great info and helps me think this all out.

charis

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Re: Is it time to move??????
« Reply #15 on: February 05, 2019, 01:29:30 PM »
Why do you feel that your children don't have opportunities to make friends at the current school?  In my experience, young children make friends with the kids in their classes, unless there is a social anxiety or special needs issue, but that isn't usually fixed by just a school change.

mommy214

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Re: Is it time to move??????
« Reply #16 on: February 05, 2019, 01:43:47 PM »
This is a great questions. At the risk of sounding like a JERK the school district is a low income districts and I do not feel like there are quality families for may children to mingle with. For example I took my daughter to a b-day party and the mom had a gun tattoo on her arm. The other family situation her father killed himself, its just one problem after another.

So can my daughter make friends yes but I am not convertible with the friends she could have.

Chrissy

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Re: Is it time to move??????
« Reply #17 on: February 05, 2019, 02:41:54 PM »
Ok, move now.  You can pull this off, it's just a little risky.  Moving doesn't have to have a financial reason; it's TOTALLY VALID to want middle class society for your family.


AlexMar

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Re: Is it time to move??????
« Reply #18 on: February 05, 2019, 03:04:16 PM »
This is a great questions. At the risk of sounding like a JERK the school district is a low income districts and I do not feel like there are quality families for may children to mingle with. For example I took my daughter to a b-day party and the mom had a gun tattoo on her arm. The other family situation her father killed himself, its just one problem after another.

So can my daughter make friends yes but I am not convertible with the friends she could have.

Sounds reasonable to me.  Maybe moving isn't a terrible idea.  As Chrissy says, asking for middle class society isn't unreasonable.

lilsaver

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Re: Is it time to move??????
« Reply #19 on: February 05, 2019, 03:12:10 PM »
Instead of moving, can you do a interdistrict school transfer? Some areas allow this if the school district is really bad. This will let you send your kid to better school in a nearby city, at least until your husband finishes school.

mommy214

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Re: Is it time to move??????
« Reply #20 on: February 05, 2019, 03:35:19 PM »
So I guess the question is how do I get this done and preserve my current financial comfort level. I have never sold property before and if I had an ideal situation I would want to find something for 180k. I think I have a good down payment to keep my house payment low.

We do have school of choice where we live itís just annoying to get them there we could do it for a year or so but would not want it to be long term.

So we will need to move at some point so why not just get it over with now.
« Last Edit: February 05, 2019, 03:37:49 PM by mommy214 »

Just Joe

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Re: Is it time to move??????
« Reply #21 on: February 05, 2019, 05:02:21 PM »
My first step would be go talk to a bank and see what the costs of a larger mortgage will look like. Get pre-approved more or less.

Next makes sure your husband is on board.

Next start haunting the online real estate ads and see what you can get with your budget.

Then - reality check - will it cost what you think it will? Do you have a really good handle on your current budget?

Are you estimating your budget or is it nailed down?

Is there any chance that your husband will need to relocate after graduation to find quality employment?

If so, consider renting in the neighborhoods you want to live in.

Every sale and purchase of property has thousands of dollars in transaction fees. A person doesn't want to do this any more often than necessary.

crispy

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Re: Is it time to move??????
« Reply #22 on: February 05, 2019, 05:14:55 PM »
I guess I will be the voice of dissent, but I would definitely consider moving. It doesn't seem like a huge financial stretch, but it sounds like it would be worth it to be in a better school district and to get a bit more space.

mommy214

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Re: Is it time to move??????
« Reply #23 on: February 05, 2019, 05:51:38 PM »
Our fiances have not changed in 10 years. We have lost or changed jobs but that it, small changes in daycare more food to feed more people, but Im done having children so that is now fixed. As far as my husbands goes his plan is to be a high school teacher. There should be an opportunity for him when he is done if not he plans to sub until he finds something with in a hour of were we live. The fact is I am at the top of my profession as far as pay goes so that will also not change.

If we do move I do not plan on moving again for a long time.  In general we live on 50k per year (about 3300 per month +/-) and anything extra goes to savings or retirement etc...
When we bought the house we had no kids so the school was not overlay important to us at the time but now we have to kids and its of the upmost importance.

Its to bad the area sucks because I could pay off my house and save even more.

here are a few more financial facts about me:
Credit score is 815
my total debt is 65K
may debt to income is 15%

Dont know if this info will help determine if I can pull of a more expensive house or not. A side note I have no credit card debt and do not plan to.
« Last Edit: February 05, 2019, 06:15:44 PM by mommy214 »

mm1970

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Re: Is it time to move??????
« Reply #24 on: February 05, 2019, 06:40:37 PM »
In all fairness my husband would never move he loves his house. :)

So most of the time we get raises or extra cash we do save it. I am a saving maniac. That is why I have staid in this house for so long.

My biggest motivation for moving is school district, neighborhood and function of my home. Im not sure if my husband getting a FT job really matters. Because he has had them in the past and the income we make is the same 80k +/- per year. Either he works full time or I do. The other thought I have is what if he was a stay at home dad there would only be one income mine.  So the way I see it our income will be the same no mater what house we live in.

I have about 70k in investments already and can only put (and don't quote me 5k each year into an IRA cash)? I do that already.

The idea is can I take my equity and roll it into a larger home in a better school district with a bigger yard. :) I am grasping a straws now!!!!!!

THATS ALL I GOT GUYS :)

This has really been great feed back thanks again

Point I was making about waiting wasn't finances, you've got that covered.

It's location location location.

Better school district, yeah, but you want to avoid an hour commute if you can.  Right?

mommy214

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Re: Is it time to move??????
« Reply #25 on: February 05, 2019, 06:46:59 PM »
An hour commute in Detroit is the norm it is simply unavoidable. I also drive an hour to work 3 day and work remote the other two.  Our city sucks!!!! If its not an accident its construction.

AlexMar

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Re: Is it time to move??????
« Reply #26 on: February 05, 2019, 06:51:57 PM »
An hour commute in Detroit is the norm it is simply unavoidable. I also drive an hour to work 3 day and work remote the other two.  Our city sucks!!!! If its not an accident its construction.

Have you read any of the articles on cars and commuting? The savings calculations living closer to work, etc?  An hour commute is a total disaster! Knowing this info, I'm reverting to back to suggesting not moving until your husband finds his long term employment. Then look at housing options much closer to his work.  Until your husband is actually working, it does seem a little ridiculous to move when you have no idea where he may find a job.  What if leaving the area all together makes the most sense?!

mommy214

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Re: Is it time to move??????
« Reply #27 on: February 05, 2019, 07:07:17 PM »
These are all great thoughts Im loving the feed back.............

So my thought on moving to were your job is goes like this. I have worked for two companies in 12 years and moved cities about 7 times . My husband the same thing he has had numinous jobs and never stays in the same city. If I lived were my job was I would move every two years or so.

So my work base is 1 hour away but we do business in all of Meto Detroit thus the reason I work from home and go to the office.

last note I love my work and have no plans on leaving.

I also ran this idea through my head what if we need to leave the area ! Let me post this Idea according to my husband he love his house and wants to die here. With that said if I never suggested moving he would stay put and he would have to  wait for a job with in an hour commute.

Hunmm all good stuff ...................
« Last Edit: February 05, 2019, 07:16:09 PM by mommy214 »

mommy214

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Re: Is it time to move??????
« Reply #28 on: February 05, 2019, 07:19:21 PM »
An hour commute in Detroit is the norm it is simply unavoidable. I also drive an hour to work 3 day and work remote the other two.  Our city sucks!!!! If its not an accident its construction.

Have you read any of the articles on cars and commuting? The savings calculations living closer to work, etc?  An hour commute is a total disaster! Knowing this info, I'm reverting to back to suggesting not moving until your husband finds his long term employment. Then look at housing options much closer to his work.  Until your husband is actually working, it does seem a little ridiculous to move when you have no idea where he may find a job.  What if leaving the area all together makes the most sense?!

With this info I should have moved a long time ago Ha Ha !!!!!!!!