Home › Forums › Closed Forums › Buying and Selling RE › Sell now and rent or stay put?
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August 12, 2007 at 10:42 AM #9818August 12, 2007 at 11:06 AM #73715temeculaguyParticipant
This idea may not be met with applause but I say stay put. You pay 2k and get the tax benefit, 2k rent would actually cost you more. You’ve got a hedge bet in case we are all wrong but if we are not and you lose 20% value, so will your move up house. If things really tank, you can get the move up house without a jumbo and keep the starter as a rental. I say all three scenarios are covered by staying put and selling now may be a little late and placing all your bets on one scenario, a year or two ago it was a good play but sales are slower now. The other thing to consider is that you don’t have kids yet and you both work, getting abigger house and then having kids doubles your expenses and halves your income, if you can afford your current house on one earners income you may want to extend your stay in the starter home. Having kids can be stressful enough, better to do it with a comfortable payment. Move up if things get real cheap and don’t worry about it until they near school age, it’s irrelevent to a baby where it lives as long as it has someone with them and that someone isn’t pulling their hair out and taking meds because of the stress.
August 12, 2007 at 11:06 AM #73834temeculaguyParticipantThis idea may not be met with applause but I say stay put. You pay 2k and get the tax benefit, 2k rent would actually cost you more. You’ve got a hedge bet in case we are all wrong but if we are not and you lose 20% value, so will your move up house. If things really tank, you can get the move up house without a jumbo and keep the starter as a rental. I say all three scenarios are covered by staying put and selling now may be a little late and placing all your bets on one scenario, a year or two ago it was a good play but sales are slower now. The other thing to consider is that you don’t have kids yet and you both work, getting abigger house and then having kids doubles your expenses and halves your income, if you can afford your current house on one earners income you may want to extend your stay in the starter home. Having kids can be stressful enough, better to do it with a comfortable payment. Move up if things get real cheap and don’t worry about it until they near school age, it’s irrelevent to a baby where it lives as long as it has someone with them and that someone isn’t pulling their hair out and taking meds because of the stress.
August 12, 2007 at 11:06 AM #73841temeculaguyParticipantThis idea may not be met with applause but I say stay put. You pay 2k and get the tax benefit, 2k rent would actually cost you more. You’ve got a hedge bet in case we are all wrong but if we are not and you lose 20% value, so will your move up house. If things really tank, you can get the move up house without a jumbo and keep the starter as a rental. I say all three scenarios are covered by staying put and selling now may be a little late and placing all your bets on one scenario, a year or two ago it was a good play but sales are slower now. The other thing to consider is that you don’t have kids yet and you both work, getting abigger house and then having kids doubles your expenses and halves your income, if you can afford your current house on one earners income you may want to extend your stay in the starter home. Having kids can be stressful enough, better to do it with a comfortable payment. Move up if things get real cheap and don’t worry about it until they near school age, it’s irrelevent to a baby where it lives as long as it has someone with them and that someone isn’t pulling their hair out and taking meds because of the stress.
August 12, 2007 at 12:20 PM #73745TheBreezeParticipantOne of the problems with trying to sell now is that you are very likely to have to price your home below the current ‘market’ price to get it to move. That’s not an easy thing for most people to do — especially when you will be selling voluntarily. It’s much easier psychologically to sell on the way up as you can price your home at the current market and then sell at an above market price.
You’re in a tough situation. The housing market could still drop 40% from here. However, you may have to price your house 10% below market to get it to sell. I’m not sure what I would do in your spot. Probably stay put.
August 12, 2007 at 12:20 PM #73870TheBreezeParticipantOne of the problems with trying to sell now is that you are very likely to have to price your home below the current ‘market’ price to get it to move. That’s not an easy thing for most people to do — especially when you will be selling voluntarily. It’s much easier psychologically to sell on the way up as you can price your home at the current market and then sell at an above market price.
You’re in a tough situation. The housing market could still drop 40% from here. However, you may have to price your house 10% below market to get it to sell. I’m not sure what I would do in your spot. Probably stay put.
August 12, 2007 at 12:20 PM #73863TheBreezeParticipantOne of the problems with trying to sell now is that you are very likely to have to price your home below the current ‘market’ price to get it to move. That’s not an easy thing for most people to do — especially when you will be selling voluntarily. It’s much easier psychologically to sell on the way up as you can price your home at the current market and then sell at an above market price.
You’re in a tough situation. The housing market could still drop 40% from here. However, you may have to price your house 10% below market to get it to sell. I’m not sure what I would do in your spot. Probably stay put.
August 12, 2007 at 12:34 PM #73748JESParticipantI recommend that you go to Borders and read the book called The Paradox of Choice to give you some great insight into the mechanisms that are at play when we humans make decisions. You may come away convinced that buying a new house will not really make you that much happier in the long run. Considering your situation, I would recommend doing everything possible to remain content where you are, especially in light of the current market conditions.
August 12, 2007 at 12:34 PM #73873JESParticipantI recommend that you go to Borders and read the book called The Paradox of Choice to give you some great insight into the mechanisms that are at play when we humans make decisions. You may come away convinced that buying a new house will not really make you that much happier in the long run. Considering your situation, I would recommend doing everything possible to remain content where you are, especially in light of the current market conditions.
August 12, 2007 at 12:34 PM #73866JESParticipantI recommend that you go to Borders and read the book called The Paradox of Choice to give you some great insight into the mechanisms that are at play when we humans make decisions. You may come away convinced that buying a new house will not really make you that much happier in the long run. Considering your situation, I would recommend doing everything possible to remain content where you are, especially in light of the current market conditions.
August 12, 2007 at 1:12 PM #73881NotCrankyParticipantAt this point,given your described scenario, I like the idea of saving this property for a long term rental/part of your nest egg, as long as you can stave off a period of under-employment or your jobs are really secure. Buy your home of choice when timing is good. The current house can be leveraged or sold to pay off your prefered houses if prices rebound. If they don’t it will become a better and better source of income over the years. On the other hand banking more than a couple of grand looks pretty good. I would not sell and buy more house right now.
Best wishesAugust 12, 2007 at 1:12 PM #73889NotCrankyParticipantAt this point,given your described scenario, I like the idea of saving this property for a long term rental/part of your nest egg, as long as you can stave off a period of under-employment or your jobs are really secure. Buy your home of choice when timing is good. The current house can be leveraged or sold to pay off your prefered houses if prices rebound. If they don’t it will become a better and better source of income over the years. On the other hand banking more than a couple of grand looks pretty good. I would not sell and buy more house right now.
Best wishesAugust 12, 2007 at 1:12 PM #73761NotCrankyParticipantAt this point,given your described scenario, I like the idea of saving this property for a long term rental/part of your nest egg, as long as you can stave off a period of under-employment or your jobs are really secure. Buy your home of choice when timing is good. The current house can be leveraged or sold to pay off your prefered houses if prices rebound. If they don’t it will become a better and better source of income over the years. On the other hand banking more than a couple of grand looks pretty good. I would not sell and buy more house right now.
Best wishesAugust 12, 2007 at 1:41 PM #73899one_muggleParticipantAs bad as things might get, market timing is a tough business and generally not recommended with your primary residence.
Anecdotal story: The most risk tolerant person I know suggested to someone that they do the sell/wait/buy tactic for a vacation rental (Myrtle Beach, I think), when the prospective seller mentioned doing the same with his hugely appreciated NYC co-op the comment from Mr Risk Tolerant “You gotta be f–kin nuts!” (That’s NY-speak for “I think that is a bad idea, my friend.”
-one muggle
August 12, 2007 at 1:41 PM #73907one_muggleParticipantAs bad as things might get, market timing is a tough business and generally not recommended with your primary residence.
Anecdotal story: The most risk tolerant person I know suggested to someone that they do the sell/wait/buy tactic for a vacation rental (Myrtle Beach, I think), when the prospective seller mentioned doing the same with his hugely appreciated NYC co-op the comment from Mr Risk Tolerant “You gotta be f–kin nuts!” (That’s NY-speak for “I think that is a bad idea, my friend.”
-one muggle
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