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Old 03-29-2018, 11:41 AM
 
828 posts, read 956,013 times
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I bought my house approx 3 years ago, getting exactly what I _thought_ I wanted then, and now realizing between the house/property, and what I want out of life has changed...there's really nothing I enjoy about it, or the area, now.

I'm also concerned about the economics of trying to sell my house while attempting to buy another one, and what I'll have to do if I either can't find a house after accepting an offer on mine or having to carry two mortgages for a while if I can't sell mine in a quick fashion.

At this point, I'm seriously considering selling my house first, and renting something for a while...possibly a long while. The maintenance of the place has turned out to be a lot for me to handle by myself, though that will be mitigated somewhat as I'll be moving from rural property that's an hour from work to a much smaller city property 15-20 minutes from work. My intention/hope is also to get a smaller house than I have now.

The biggest driving factor for me to buy when I did was the low interest rates, combined with a sort of rent control for myself - more or less locking in a monthly housing cost, and ultimately, 30 years from now, not having a mortgage/rent payment at all. Realistically, I bought before I was really financially, and personally, ready to do so, thinking I'd suffer a few years just to be able take advantage of a low in the market.

But now, after running the numbers..my monthly cost has gone up roughly 3% a year due to taxes and insurance going up, which I understand is right about the average for rent costs to go up each year. Which really only leaves "not having a payment 30 years from now". I know I'd still have taxes and insurance to deal with, which currently is about 10% of my total monthly housing costs, though I'd expect that would continue to be a small portion of overall costs even 30 years down the road. Thankfully, home values have risen enough that if I sold now, I'd expect that I'd come out at least $20K ahead after paying commissions, closing costs, loan balance, etc.

I'm seriously considering selling the house, and renting something for a while. I suspect that eventually I'd find an area that I'm happy with long term, and I'd want to buy again..but that might be 5 or 10 years down the road. My only real concern is here is losing out on those 5 or 10 years of equity building, and home costs continuing to rise. Not so much that I'd be priced out of the buying market, but rather that if I don't buy again now, that I'll be spending much more later. But is that even a realistic concern?
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Old 03-29-2018, 12:32 PM
 
6,103 posts, read 3,266,484 times
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Is it a concern? Sure. Both the appreciation and rising interest rates from historic lows will likely make purchasing significantly more expensive in that time frame, unless there's another recession/bubble pop. But finding a location you will be happy with long term is more important I would say.

In the same sort of boat. Purchased a house a year and a half ago. Street we are on has gotten busier due to people using it as a bypass for the town's main street and the location was a bit of a compromise with no good views but of other neighbors. It was new construction so no maintenance costs to speak of though.

We are going to build a new place. Found a much better location with mountain, lake, and tree views. Well off any main road. Quieter, more private.

Debated selling our current place as it has appreciated a good $70k in that time(thanks Portland area real estate market!), but we are settling on renting it out. Rent would take in $5-600/month more than our mortgage. Which also means preserving that crazy low interest rate and continuing to build equity. If we decide being a landlord isn’t for us, it would sell in a week.

Last edited by notnamed; 03-29-2018 at 12:42 PM..
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Old 03-30-2018, 08:42 AM
 
Location: Columbia, SC
8,844 posts, read 17,440,566 times
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I'd be more concerned about interest rates. The prices will reset IMO at some point in the mid 2020's. Rates will go up and may not come back down.

So if you want to lock in a payment buy now.
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