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Just a thought, maybe you plan on these things once a year...or budget for one of these items a year and stash it away...As has been said, HVAC, roof, floors, etc could be done in two years or could work for 20 more.
That's called a "sinking fund". You don't just come up with $10,000 all at once for a new roof. You figure how long the current roof will last, how much a new roof will cost then, and put aside equal amounts for however many years. Its part of the long-term expense of a home. Those "sunk costs" are also why rent keeps increasing. Its not the evil landlord trying to squeeze every last nickel out of you, he has his costs to consider.
Our house is 12 yrs old, we've lived in it for 9 yrs. We've already had it painted exterior and interior and added a screened porch. We are meticulous when it comes to maintaing our home.... However I can just see the expenses that will happen over the next 10 years. Water heater, refinishing hardwood floors, HVACs, new carpet,roof, kitchen and bathroom renovations(Will be out of date around 20 yr mark), and yet another exterior paint job. We know that all these things come with home maintenance, but all of these things will likely total in the 50k range when it's all said and done. Seems easier to buy a new construction and not worry about all of the above. I don't love the floor plan, but it's a great neighborhood and we bought it for a very good price. We can afford to maintain it, but a new construction every 10 yrs sounds appealing.
You usually do better by staying put long term unless there is an outside influence on value.
That said, you have a "kneed" and an itch. And, 12 years is a good age to sell.
Well-maintained systems should still have plenty of life in them. The roof is not near aged out.
Like JK said, your "kneed" is as pressing as finance.
I always think it is better to sell or buy something when you don't have to, in orderly and methodical fashion, rather than wait until you are cornered and have little choice. That is when people pay premiums and make mistakes.
That's called a "sinking fund". You don't just come up with $10,000 all at once for a new roof. You figure how long the current roof will last, how much a new roof will cost then, and put aside equal amounts for however many years. Its part of the long-term expense of a home. Those "sunk costs" are also why rent keeps increasing. Its not the evil landlord trying to squeeze every last nickel out of you, he has his costs to consider.
Another evil landlord here --- the 20% tax and insurance increases for some of my rental properties over the past 5 years have steeply narrowed the "profit" I make on properties with long-term tenants because they only get marginal rent increases. And yet, the push back and anger when there are rent increases show how little they understand about the realities of home ownership.
...show how little they understand about the realities of home ownership.
The realities of home ownership have zero bearing on market rates.
If/when the market allows a bigger increase in rent rates few LL's will pass up the opportunity.
(and since the mortgage collapse hit it has been exactly that nearly everywhere)
There will be some juggling between a zero/modest increase over risk of turnover expenses
inherent to raising rents too much or too often -and there should be- but as soon as that tenant
has their own reason to move -as most will in X months/years- the new market rate will be charged.
And if everyone plays their cards right the departing tenant will be gigged for leaving early.
I had no idea that people still built houses that required exterior paint. Maybe out west where stucco is inexplicably popular, but here everyone has vinyl, stone, or brick, none of which need painted pretty much ever.
In my area, brick, stone and stucco are used for accents. Vinyl is considered the "cheap" alternative. When I think vinyl, I think of production builders who do everything as cheaply as possible, or else trailer parks. Almost everything here is masonite siding. Hardiplank has been very popular for the last 10 years or so, because it is fire and water resistant, and you don't have to repaint for about 20 years.
Brick or stone houses are typically more than 50 years old here, and stucco for the whole exterior is almost unheard of.
OP, I think you need to factor in moving expenses to this equation as well. Furniture does not always fit perfectly in new rooms either and sometimes you need to switch out.
I don't know, I have to say that this sort of "let someone else deal with this expense" idea rubs me a bit of the wrong way when I am looking to buy. There is no such thing as meticulous deferred maintenance. Sometimes homeowners think that they need to "get out" before things break. But if you are taking care of it all the way and replacing as you go, why would you be worried about that?
+1. Real estate commissions (6%?) and some (presumably local) moving expenses are where the OP's theory breaks down IMHO. It varies by region but on average, a new house commands a 20% premium too, why keep paying that every 10 years? Changing addresses and various services would be a nuisance too, but not the big factor.
OP, I think you need to factor in moving expenses to this equation as well. Furniture does not always fit perfectly in new rooms either and sometimes you need to switch out.
I don't know, I have to say that this sort of "let someone else deal with this expense" idea rubs me a bit of the wrong way when I am looking to buy. There is no such thing as meticulous deferred maintenance. Sometimes homeowners think that they need to "get out" before things break. But if you are taking care of it all the way and replacing as you go, why would you be worried about that?
Maybe it's because I just don't love the house and the layout to pay for all the things in the future that you can't really see, therefore won't raise the value. There was definitely some things done very cheaply so things will have to be replaced sooner rather than later. Everything was basically builder grade and built before the crash, so those houses were built very fast.
If this house was a ranch however, I wouldn't dream of leaving. That's probably the biggest factor at this point.
Maybe it's because I just don't love the house and the layout to pay for all the things in the future that you can't really see, therefore won't raise the value. There was definitely some things done very cheaply so things will have to be replaced sooner rather than later. Everything was basically builder grade and built before the crash, so those houses were built very fast.
If this house was a ranch however, I wouldn't dream of leaving. That's probably the biggest factor at this point.
Okay, then its not so much about the age of the house-- its more about the house no longer being a good fit, or not being the best fit for your future. It sounds like if you really loved it there, you would be willing to do some upgrades and stay put. But there are other things that are not working.
Buying a house is ALWAYS more expensive than you think it will be.
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