UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: CashRulez One star, 50 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127801  
Subject: wrestling with the idea of a new home Date: 12/20/2013 7:33 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I was fortunate enought to buy a home near the bottom of the real estate bust in Spring 2011. With the recovery, I have accumulated a nice amount of equity and have also refinanced 3 times to a rate of 3.75%.

This was a starter home for me and my wife but we planned to live in it for the long-term as we are both live-below-our-means type of people. However, over the last year we were blessed with a son and have plans for one more child. Given that he is the oldest grandchild on both sides, parents come and visit quite a bit and often stay days and even weeks at a time. Long story short, we think we are going to out-grow our house.

We have 3 options:

1. Sell our home and use the equity to purchase a new one.
2. Keep the home, rent it out and dip into the stock and savings to fund a new purchase. We will be cash flow positive in a desireable area which is appealing. Dipping into my stocks which I am a strong believer in, is not)
3. Stay put and continue to live below our means.

Since the market has recovered so strongly, it's tough paying twice as much as I paid for my house for one more bedroom and 600 more square feet. However, it may make sense to make this move now rather than later when rates are back to "normal."

Have any of you ever been in this situation? What did you decide? Are you happy with your decision? Do you have any regrets?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement