We're outgrowing our first home. We are getting things organized to be able to put competitive bids on potential homes within the same neighborhood. We don't live in some crazy place like SF or Seattle but our neighborhood is quite idyllic, very few houses go up for sale and when they do they're gone fast.
Our mortgage is 3% and was (geniusly) refinanced by yours truly in 2020 out for 30yrs. Taxes are low, especially compared to the neighboring other inner ring suburb. Basically, i pay less in mortgage/taxes/insurance than I did renting way back in 2012. So I feel confident it would be pretty easy to rent my current single family detached current home for all that plus a little extra which I am going in thinking much of it will have to used for repairs and such. I'm pretty handy and am comfortable with allocating the personal "bandwidth" to be a landlord of a house within walking distance.
My question is more related to any financial blind spots I haven't considered or whether selling would be the more advantageous route. We can cover the costs of this plus a new home, though I obviously wouldn't want to do it for many months just sitting vacant, but it can be done, the point really is to keep building equity at such an advantageous loan rate. The house has already appreciated close to +65% of what we paid, and given the trend and desireability of the neighborhood, I don't see that changing. While single family detached rentals seem sort of odd to me, my own neighbors are renters of such.
So why should I rent or sell? It feels pretty obvious to me to rent, but I never imagined finding myself in such a situation, housing has always been a major budget line item but thanks to the magic of saving, career advancement, inflation, and fixed rate mortgages, it now feels like I'm practically stealing.
Our mortgage is 3% and was (geniusly) refinanced by yours truly in 2020 out for 30yrs. Taxes are low, especially compared to the neighboring other inner ring suburb. Basically, i pay less in mortgage/taxes/insurance than I did renting way back in 2012. So I feel confident it would be pretty easy to rent my current single family detached current home for all that plus a little extra which I am going in thinking much of it will have to used for repairs and such. I'm pretty handy and am comfortable with allocating the personal "bandwidth" to be a landlord of a house within walking distance.
My question is more related to any financial blind spots I haven't considered or whether selling would be the more advantageous route. We can cover the costs of this plus a new home, though I obviously wouldn't want to do it for many months just sitting vacant, but it can be done, the point really is to keep building equity at such an advantageous loan rate. The house has already appreciated close to +65% of what we paid, and given the trend and desireability of the neighborhood, I don't see that changing. While single family detached rentals seem sort of odd to me, my own neighbors are renters of such.
So why should I rent or sell? It feels pretty obvious to me to rent, but I never imagined finding myself in such a situation, housing has always been a major budget line item but thanks to the magic of saving, career advancement, inflation, and fixed rate mortgages, it now feels like I'm practically stealing.
Statistics: Posted by Bulletproof — Wed May 08, 2024 11:45 pm — Replies 0 — Views 131