| To stay or sell... from a financial perspective |
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adamjohnson
Member
Cash: $ 5.45
Posts: 20
Joined: 18 Aug 2016
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| To stay or sell... from a financial perspective |
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This is our 2nd home and we bought it pre kids. It doesn’t meet our needs post kids very well... layout issues, so we thought about moving to a better well suited home in the same area...Here’s the kicker however...we’ve been in this house for 10 years (it’s 14 yrs old) and have a low interest rate and low payments. The new mortgage because this area has really grown in price, would be $1,000 extra per month on a newer 4 to 5 year old home. Since our home is 14 years old, we are going to have major system replacements in the next 8 years such as roof, hvac x 2, exterior paint again, carpet, refinish hardwood floors, and kitchen or bathroom renovations in the next 10 years. We plan on staying in either this house or the next 13 more years. Our current house would be close to 30 years old at the time and def would require renovated rooms to sell. As of right now...everything is still on trend.
more: sun quảng an, sun láng hạ
Calculating the financials of staying verses going and having a $1,000 extra on the payment, on paper it appears to be fairly even since our current house will require a lot of money dumped into it. Our income is around $140,000 and would be looking at a 3 to 5 year old house around $440,000 with 20% or more down. The newer home will be a while before systems fail and won’t require renovations, although the payment $1,000 more per month and the interest rate much higher than our current one. We bought the current one for 290,000.
more: sun láng hạ
Is it smarter to just stay and dump a lot of money into this one or just buy the newer upgraded place if you were in our situation?[/url]
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Mon Sep 10, 2018 9:00 am |
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ken-do-nim
Full Member
Cash: $ 16.50
Posts: 81
Joined: 08 Sep 2016
Location: Mansfield, MA
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Hi there! You probably already made your decision, but some thoughts:
1) I disagree with a number of your assertions. A 14 year old house won't need a new roof for a long time to come. I also don't see why the kitchen and bath need renovations.
2) Ripping up carpets and putting in hardwood floors is labor-intensive to get the furniture moved out of the way, but not particularly expensive in the long run.
3) Heating units, exterior paint, it's all part of home maintenance but will it need it for sure in the next 10 years? You don't really know that. For comparison, I've been in my house for 13 years and I've changed a heater once, and the roof and outside paint are still fine.
So that brings us to the "layout" problems. Can you solve it with an addition on the first floor? First floor extensions keep their value.
Other things to think about: commutes to work from old vs new, neighborhood, school districts, etc.
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Mon Dec 03, 2018 9:38 pm |
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eBod
Member
Cash: $ 3.20
Posts: 16
Joined: 19 Sep 2022
Location: New Zealand
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If I were in this situation, I'd go for the new, bigger house. At least this way you have a definitive figure for the extra cost. Renovations almost always go over budget, so you never know what the outcome will be. Sounds like you're going to be in the same position either way, so you may as well upgrade while you're at it! Sure, it'll require extending yourself, but it'll be a wiser decision long-term.
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Thu Nov 24, 2022 8:43 pm |
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