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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 127680  
Subject: wrestling with the idea of a new home Date: 12/20/2013 7:33 AM
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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?
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