Quote:
Originally Posted by hnsq
Have you explored moving? I know you say you don't want to move because the market is poor, but what does it hurt to list your house and see what you can get?
The market IS poor, which means you might be able to get a great deal buying a house close to the new job. I would seriously explore moving. Bring a few agents through your house, price it out and try to sell it. Even if you don't get exactly what you want, but a smaller home that is 5 miles from the new job. If your house is paid off, you have some wiggle room.
Assuming gas is at $3.45/gal and you get 20 mi/gal, you will spend $97/week on gas. that is $418/mo on gas. If you sell your home and move closer, you can get a 30 year mortgage on a new house for roughly $90,000 and pay that same amount (I was doing this in my head assuming a 5% APR...so the numbers aren't precise, but they are ballpark). That means you can buy a home for $90k more than what you can sell your house for, live extremely close to work (walking distance maybe?) and be just as well off financially (well...better actually as you save wear and tear on the car, and you also get a few hours back every day).
If it were me, I would definitely sell the home and spend the extra money on a mortgage rather than gas.
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In my situation moving would be challenging. 1) I went back to school after the plant closed and have had a limited income for quite some time. Qualifying for a mortgage would be impossible (although I have excellent credit) 2) Where I am right now is PERFECT for the business I am developing. I am equidistant from three cities (Nashville, Chattanooga & Huntsville) and what I am focusing on would require a broad market. In the long run staying here would be a benefit.
I agree with your analysis though if I intended to take a permanent job in a location so far away. The savings in gas, time and wear and tear on a vehicle would far outweigh any additional mortgage payments.
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