What we’re seeing with interest rates and inventories is an anomaly that is specifically designed to artificially inflate prices and work in favor of sellers. It will not last forever, even though it could last for longer than most of us think wise.
If I were in your shoes, I’d be thinking very seriously about whether it’s best to sell and then buy or rent the retirement home, or rent your primary house out while renting the retirement home.
This is the time to SELL. The market is on fire with so little inventory and incredibly low interest rates. The bubble was not allowed to fully deflate, but that doesn’t mean they’ll be able to artificially prop up prices indefinitely. If you ever intend to sell, don’t let unrealistic pricing expectations get in your way. Sell sooner rather than later…[/quote]
I understand what you’re saying here, CAR. But my PITI is “affordable” and we NEED someplace to live until kid goes to college. It is neither easy nor cheap to find a rental for pets close to where I need to live right now (here) and I don’t want to move twice. And I need to complete more repairs/replacements before selling, PREFERABLY within one year of putting my property on the market … to offset any possible capital gains tax I might have to pay for the tax year of the sale.
I really don’t care if I can’t get the price I want within a few weeks of marketing my residence. I really don’t have any problem with renting it out as it would have a substantial monthly positive cash flow. This would also give me the option of moving back into it in the future if I wished to come back to the area to live as I wouldn’t likely be able to qualify for a mortgage on my own. I will likely have to pay cash for any future properties I purchase.
I’ll have to take my chances on values increasing in the months/years to come … or not. So far, they have stabilized but I don’t see them (appreciably) increasing around here … yet.
