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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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what made you decide to sell your house/condo/coop?
DH and i bought our first house 1 1/2 years ago and now he thinks we should consider selling and rent an apartment instead to save more money and then buy something again in a few years. i feel like that's taking a step back and like all of the time and effort and money we put into the house will be lost. he thinks we'll make money on the house and despite the economy, i think we would too since our house was sold under market value to begin with, but what he thinks we'll get is unrealistic. it saddens me that he feels this way.
why did you sell your house? anyone sell for the reason my DH wants to consider selling for?
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Posted 5/29/08 9:59 PM  |
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jax1023
LIF Adult
Member since 3/07 1165 total posts
Name:
Jackie
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Re: what made you decide to sell your house/condo/coop?
How much will you be saving by renting? That has to be part of the consideration, if you rent, you'll no longer be building equity and you won;t have the tax benefits from your mortgage.
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| Posted 5/29/08 10:04 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: what made you decide to sell your house/condo/coop?
That's a HUGE step back and I wouldn't do it. You already paid a ton of closing costs. You will pay a seller's transfer tax when you sell. You paid the cost of moving to the house, and will have to pay the cost to move out AND eventually move to a new house. Ouch.
If you are insistent on moving out, rent the house instead. Better financial move IMO.
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| Posted 5/29/08 10:09 PM |
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Kristin616
Member since 8/06 3595 total posts
Name:
Kris
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Re: what made you decide to sell your house/condo/coop?
Posted by ave1024
That's a HUGE step back and I wouldn't do it. You already paid a ton of closing costs. You will pay a seller's transfer tax when you sell. You paid the cost of moving to the house, and will have to pay the cost to move out AND eventually move to a new house. Ouch.
If you are insistent on moving out, rent the house instead. Better financial move IMO.
I completely agree. I think it's taking a step backwards also. How much more money would you be saving renting a place? Is there anyway you can rent out part of your house to loosen up your monthly payments?
Message edited 5/29/2008 10:16:24 PM.
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| Posted 5/29/08 10:15 PM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: what made you decide to sell your house/condo/coop?
Posted by Kristin616
Posted by ave1024
That's a HUGE step back and I wouldn't do it. You already paid a ton of closing costs. You will pay a seller's transfer tax when you sell. You paid the cost of moving to the house, and will have to pay the cost to move out AND eventually move to a new house. Ouch.
If you are insistent on moving out, rent the house instead. Better financial move IMO.
I completely agree. I think it's taking a step backwards also. How much more money would you be saving renting a place? Is there anyway you can rent out part of your house to loosen up your monthly payments?
no, we can't rent out part of our house and i think its a step back too, but DH really wants to consider it. we can afford the payments okay, he thinks we can have a better life without the expense though....
ETA: We'd probably save approx. 1K/month. maybe a little more.
Message edited 5/29/2008 10:29:46 PM.
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| Posted 5/29/08 10:26 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: what made you decide to sell your house/condo/coop?
even with saving $1K a month- you would be losing money
it takes 5 years of living in the house to re-coup the closing cost
so I don't see any benefit to you selling now
don't forget- it isn't free to sell- you have to PAY the real estate agent 3-6%
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| Posted 5/30/08 12:51 AM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: what made you decide to sell your house/condo/coop?
ulnless you were under severe finacial strain I would not even consider it.
In 5 years home values could be on a major upswing again, interest rates could be much higher & you maybe priced out of the market.
Would you be putting the extra 1k in the bank every month or just spending more money on things you want?
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| Posted 5/30/08 6:45 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: what made you decide to sell your house/condo/coop?
Posted by RandJ0806
no, we can't rent out part of our house
I was saying rent the entire house out.
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| Posted 5/30/08 9:09 AM |
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NinaLemon
It's a boy!!!
Member since 10/07 6453 total posts
Name:
Jeannine
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Re: what made you decide to sell your house/condo/coop?
Posted by ave1024
That's a HUGE step back and I wouldn't do it. You already paid a ton of closing costs. You will pay a seller's transfer tax when you sell. You paid the cost of moving to the house, and will have to pay the cost to move out AND eventually move to a new house. Ouch.
If you are insistent on moving out, rent the house instead. Better financial move IMO.
ITA agree - my sister and her DH just did this. My sister wanted to go back to school and the only way they could afford it was to rent out their house and temporarily stay in a family apt. rent free. It is working out for them but it was a huge decision to come to.
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| Posted 5/30/08 10:11 AM |
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Re: what made you decide to sell your house/condo/coop?
In this economy, I wouldn't sell unless ABSOLUTELY necessary. And with the real estate market what it is, you would probably not get what you paid, even if you paid under market 2 years ago. Most people over value what their house is worth and you might not even get what it is appraised for today.
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| Posted 5/30/08 10:46 AM |
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Lanabean
Yoginis
Member since 11/05 9202 total posts
Name:
Lana
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Re: what made you decide to sell your house/condo/coop?
The commute was too much for DH and we had a townhouse; we were ready for a house. We got a very good price (really close to ask) and sold in three/four months.
Message edited 5/30/2008 12:39:55 PM.
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| Posted 5/30/08 12:39 PM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: what made you decide to sell your house/condo/coop?
You can always just put it on the market and see what kind of offers you get. I would just factor in a 7% of sales price selling cost (both realtors + closing costs) and moving costs. Plus you may have to make repairs before closing if the sellers demand it or the inspection requires it.
I wouldn't do it though. By the time you sell, rent, save, and are ready to buy again, the market should improve (and then the equity that is back in your house might equal or outweigh your savings.) I would just take any raises or bonuses from now until you are ready to buy and put them aside in savings.
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| Posted 5/30/08 3:28 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: what made you decide to sell your house/condo/coop?
Posted by ave1024
That's a HUGE step back and I wouldn't do it. You already paid a ton of closing costs. You will pay a seller's transfer tax when you sell. You paid the cost of moving to the house, and will have to pay the cost to move out AND eventually move to a new house. Ouch.
If you are insistent on moving out, rent the house instead. Better financial move IMO.
To add to that if you use a broker you will have to pay them anywhere from 2-5% of the the purchase price.
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| Posted 5/30/08 4:01 PM |
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TheWhiteRabbit
Thru the rabbit hole!
Member since 7/06 4412 total posts
Name:
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Re: what made you decide to sell your house/condo/coop?
When you rent, you’re ‘throwing away’ the money. If you’re paying your mortgage your equity is increasing. You said your DH wants to eventually upgrade, say in a year. So if you take the year you may ‘save’ $1000 a month by renting, (but paying out to move and brokers commission and closing costs, ect..) but if you just keep paying into your mortgage you could be increasing your equity by that much or more, so when you sell it you’ll realize a bigger amount in your pocket with which you could use to buy something bigger. And REALISTICALLY will you REALLY put that $1,000 a month away, or just spend it? It’s just financially such a bad idea. Tell him to call your accountant for advice. As long as you can pay your mortgage you should really keep it!
We have a small house now and plan on buying a bigger house next year. We would like to even keep what we have and rent it and buy our next house without selling this one. If we can't, we will sell it, but we would liek to try to keep it, even with how the market is, I don't feel that real estate is ever a bad investment.
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| Posted 5/30/08 4:37 PM |
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alex7-2
LIF Adult
Member since 4/06 1418 total posts
Name:
alycia
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Re: what made you decide to sell your house/condo/coop?
aww im so sorry..this economy has everyone crazy..maybe he just needs to think about it more..we sold our house for a bigger one. i agree with you that its taking a step back..and IMO i think that once you get into an apartment..you dont save.you have good intentions on it.when dh and i moved into our house we put so much $$ into it and i was like "omg when we lived in our apt.we used to have so much extra $$ and what did we spend it on?" well we went to dinner. vacations. etc..you just dont save. i know this economy sucKs right now but i would try and stick it out..because you own this house..apts are great but when you own something its yours and money you get back eventually ..apts..you get your deposit back.
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| Posted 5/30/08 8:57 PM |
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LemonHead
Sour Girl
Member since 3/08 5271 total posts
Name:
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Re: what made you decide to sell your house/condo/coop?
Definitely try to stick it out- I personally could never go from owning my own home back to renting.
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| Posted 5/30/08 9:50 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: what made you decide to sell your house/condo/coop?
Posted by KittyTheStray
When you rent, you’re ‘throwing away’ the money. If you’re paying your mortgage your equity is increasing. You said your DH wants to eventually upgrade, say in a year. So if you take the year you may ‘save’ $1000 a month by renting, (but paying out to move and brokers commission and closing costs, ect..) but if you just keep paying into your mortgage you could be increasing your equity by that much or more, so when you sell it you’ll realize a bigger amount in your pocket with which you could use to buy something bigger. And REALISTICALLY will you REALLY put that $1,000 a month away, or just spend it? It’s just financially such a bad idea. Tell him to call your accountant for advice. As long as you can pay your mortgage you should really keep it!
We have a small house now and plan on buying a bigger house next year. We would like to even keep what we have and rent it and buy our next house without selling this one. If we can't, we will sell it, but we would liek to try to keep it, even with how the market is, I don't feel that real estate is ever a bad investment.
While I generally agree with your post, renting is definitely not throwing money away. You are paying for a place to live.
Remember with a new mortgage, 90% of your housing payment typically goes towards non-equity items (taxes, insurance, and interest).
Paying those items is really no different than renting. You are paying for a place to live.
But again like I said previously, selling would be a horrible financial move right now.
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| Posted 5/31/08 12:03 AM |
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