Other SDR here mrpappy. I guess the main question is what are your goals here? The reason I asked is because of what sdrealtor was getting to… are you content in the home? Are you raising your children in the home? Are you planning on living in the home for the long run or is there a possible relocation in the next few years? If there is no impending relocation, or any financial hardship or possible change of employment status, or any other reason to move, then I take it that you are pondering a sale simply to capitalize on the appreciation of the home. There is absolutely nothing wrong with that and I know many people who have done so. I think that yes you will continue to see depreciation in LCV although it is and I believe will always be a desireable area. So I take it perhaps you are thinking sell now, rent two years, then maybe repurchase at a future discount? (Sorry for all of this guessing)
I guess if you could maybe be a bit more descriptive on why you would be considering the sale, when/where would you be repurchasing, and are there any other factors like kids, family, possible employment status change, etc…
Finally, how sure are you about fetching the 875k that you mentioned? Are you factoring in the closing costs/commissions etc…
In the long run you can guess my predictable answer… Pencil out a few scenarios to see where the numbers take you. In your case there are a few distinct variables to consider, obviously your sales price, the amount of depreciation, and most important the future mortgage that you would get when you do buy. When it is all said and done you may be surprised how some of the results may not yield the overall savings you had hoped for, especially in a higher interest rate environment. It is a tough call.
