Post by greatcoastal on Jul 19, 2017 12:56:42 GMT -5
My divorce will most likely be final in the fall. I am hoping to have a significant amount of cash to spend on a house. paid in full.
here's my dilemma. The housing market is reaching an all time high, again. Very similar to when the bubble burst 5 or 6 yrs ago. Some are predicting another burst in two years. Prices will drop significantly.
Paying the maximum price right now would get me a house in the school district.
I also will have a rental house, perhaps two to keep. They are small 4/2 ,but would get the job done. So what to do? Buy, rent, sell, move into a rental?
Possitives to buying now:
School bus for transportation
3rd house paid in full.
Neighborhood kids go to the same school.
If prices drop in two years, I can sell. maybe loose a few thousand.
In two years two of my boys will no longer be living with me (maybe) I could move to a smaller house.
Prices could continue to rise in the next four years. All but one of my children will be done with H.S. by then.
I could just keep the house for the next 15 yrs and ride out the market.
I don't disturb my tenants. They get to continue living in the rentals.
Negatives to buying now.
Prices could drop a lot in the next months or two years. ( I will now be loosing tens of thousands)
The house may sit on the market for months decreasing in value, more and more.
I could rent it, and mostly break even on it.(not so bad).
Improvements made to the property will be of no value due to the significant price drop in the market.
It's a sellers market, I will be paying full price.
Positives to moving into the rental.
I purchased the rentals at the bottom of the market. The house payments and taxes would be 70% cheaper than paying rent on a similar house.
I will have enough money to pay off the loan on both rentals, and still have money to spare.
My boys could continue to live at the rental, with roommates, and pay me rent. If I want to purchase another house in a few years.
In two years I will be 55 yrs old. That opens up a bigger market of retirement housing to invest in. (can you say- The Villages-STD's- LOL!)
With my kids gone every other week, I could spend money to make improvements. ( we could live with the mess) In turn making money on the value of the house.
The rental is just a few miles from the school district I want to live in.
They are safe communities.
The two rental homes are just a mile apart from each other.
The rental is even closer to the H.S. and college where my kids go to, than the house we live in now.
The rental is close to where I hope to get a job ,in the future.
Negatives to moving into the rental.
I have to oust my tenants. (That's a big one for me. I know it's business but it's... emotionally hard) I've gone above and beyond for my tenants, and I want to remain that way.
I will be loosing thousands in added yearly income.
Not in the school district. (that's a big one too) The kids in the neighborhood will be going to a different school. I will have to figure out transportation to school and home while working on the weeks I have the kids. 2 of my sons are driving, that helps, but is an added burden on them.
The kitchens are small. The bathrooms are small. The houses are still 1960. style kitchen and baths. (a lot more sharing of bathrooms, and space than we have had to do)
Smaller bedrooms, smaller closets. Lots of downsizing.
I'll need to widen the driveway and add a car port. (although I see that as investing in the value of the property)
Lastly, I could rent a house for the next few years and watch the market. However paying rent would cost me more than moving into one of my rental homes. A significant amount more, but it would be doable.
Thanks for reading this! So much to think about!
here's my dilemma. The housing market is reaching an all time high, again. Very similar to when the bubble burst 5 or 6 yrs ago. Some are predicting another burst in two years. Prices will drop significantly.
Paying the maximum price right now would get me a house in the school district.
I also will have a rental house, perhaps two to keep. They are small 4/2 ,but would get the job done. So what to do? Buy, rent, sell, move into a rental?
Possitives to buying now:
School bus for transportation
3rd house paid in full.
Neighborhood kids go to the same school.
If prices drop in two years, I can sell. maybe loose a few thousand.
In two years two of my boys will no longer be living with me (maybe) I could move to a smaller house.
Prices could continue to rise in the next four years. All but one of my children will be done with H.S. by then.
I could just keep the house for the next 15 yrs and ride out the market.
I don't disturb my tenants. They get to continue living in the rentals.
Negatives to buying now.
Prices could drop a lot in the next months or two years. ( I will now be loosing tens of thousands)
The house may sit on the market for months decreasing in value, more and more.
I could rent it, and mostly break even on it.(not so bad).
Improvements made to the property will be of no value due to the significant price drop in the market.
It's a sellers market, I will be paying full price.
Positives to moving into the rental.
I purchased the rentals at the bottom of the market. The house payments and taxes would be 70% cheaper than paying rent on a similar house.
I will have enough money to pay off the loan on both rentals, and still have money to spare.
My boys could continue to live at the rental, with roommates, and pay me rent. If I want to purchase another house in a few years.
In two years I will be 55 yrs old. That opens up a bigger market of retirement housing to invest in. (can you say- The Villages-STD's- LOL!)
With my kids gone every other week, I could spend money to make improvements. ( we could live with the mess) In turn making money on the value of the house.
The rental is just a few miles from the school district I want to live in.
They are safe communities.
The two rental homes are just a mile apart from each other.
The rental is even closer to the H.S. and college where my kids go to, than the house we live in now.
The rental is close to where I hope to get a job ,in the future.
Negatives to moving into the rental.
I have to oust my tenants. (That's a big one for me. I know it's business but it's... emotionally hard) I've gone above and beyond for my tenants, and I want to remain that way.
I will be loosing thousands in added yearly income.
Not in the school district. (that's a big one too) The kids in the neighborhood will be going to a different school. I will have to figure out transportation to school and home while working on the weeks I have the kids. 2 of my sons are driving, that helps, but is an added burden on them.
The kitchens are small. The bathrooms are small. The houses are still 1960. style kitchen and baths. (a lot more sharing of bathrooms, and space than we have had to do)
Smaller bedrooms, smaller closets. Lots of downsizing.
I'll need to widen the driveway and add a car port. (although I see that as investing in the value of the property)
Lastly, I could rent a house for the next few years and watch the market. However paying rent would cost me more than moving into one of my rental homes. A significant amount more, but it would be doable.
Thanks for reading this! So much to think about!
