My wife and I are considering buying a new home even though our current house is paid off. Our family of five is growing out of our 1100 sq ft house which has four bedrooms because we converted the living room into an extra bedroom. A house just came up for sale that seems perfect for us. It has 5 bedrooms, 2 baths, and is 2200 sq ft, plus it sits on 4.7 acres of land, all for 195k. The idea of taking on a mortgage again is giving me cold feet, though. Would you stay in the paid off house or make the move?
195k for a 5-bedroom house sounds like a steal! I’d consider buying it too if I were in your shoes.
Dax said:
195k for a 5-bedroom house sounds like a steal! I’d consider buying it too if I were in your shoes.
The house is a bit outdated but in good shape, and the large sunroom addition overlooking the woods is a huge plus.
Definitely go for it. Using the equity from your current home smartly could work out very well financially. You might even consider keeping your current home as a rental for additional income.
Dallas said:
Definitely go for it. Using the equity from your current home smartly could work out very well financially. You might even consider keeping your current home as a rental for additional income.
Renting out the current home is an attractive idea. It could indeed provide a steady income stream and make financial sense in the long run.
@Zariah
Make sure you calculate all potential costs associated with renting out your home. Insurance, taxes, and maintenance can add up, and you’ll need to manage tenants too.
Luca said:
@Zariah
Make sure you calculate all potential costs associated with renting out your home. Insurance, taxes, and maintenance can add up, and you’ll need to manage tenants too.
Personally, I’d rather use any extra funds to pay down the new home faster or invest elsewhere. But if the rental market is strong, it could be a good move.
Luca said:
@Zariah
Make sure you calculate all potential costs associated with renting out your home. Insurance, taxes, and maintenance can add up, and you’ll need to manage tenants too.
If the house is owned outright, the financials usually are more favorable, even with a mortgage.
@Zariah
Managing rental property isn’t exactly passive. It requires effort and can be quite stressful.
What’s the price of the new home?
Daryn said:
What’s the price of the new home?
It’s listed at 195k. We put in our offer already because it seems like such a good deal for the size and land.
Daryn said:
What’s the price of the new home?
It’s listed at 195k. We put in our offer already because it seems like such a good deal for the size and land.
That sounds like a wise investment. With the equity from your current home, your monthly payments could be very manageable.
@Daryn
The more I think about it, the more it makes sense. The kids would love the space, and while I’m proud of having no mortgage, the new house could offer a better quality of life.
Zariah said:
@Daryn
The more I think about it, the more it makes sense. The kids would love the space, and while I’m proud of having no mortgage, the new house could offer a better quality of life.
Consider the happiness of your kids and the practical benefits of more space. If you can afford the mortgage comfortably, it might be the right move.
@Rowe
You’re right. The kids’ happiness and having enough space are my top priorities right now. We can handle the mortgage, so it’s probably worth it.
Zariah said:
@Rowe
You’re right. The kids’ happiness and having enough space are my top priorities right now. We can handle the mortgage, so it’s probably worth it.
Just make sure the house is in good condition. Get a thorough inspection to avoid unexpected expenses down the road.
Zariah said:
@Rowe
You’re right. The kids’ happiness and having enough space are my top priorities right now. We can handle the mortgage, so it’s probably worth it.
Absolutely, go for it. Remember, making memories in a comfortable home could be priceless.
Zariah said:
@Rowe
You’re right. The kids’ happiness and having enough space are my top priorities right now. We can handle the mortgage, so it’s probably worth it.
Have you considered the additional costs of owning a larger property? Make sure to factor in higher utilities and maintenance expenses.
@Luca
Yes, I’ve considered those. I plan to manage our budget carefully to accommodate the increase in expenses.
Zariah said:
@Daryn
The more I think about it, the more it makes sense. The kids would love the space, and while I’m proud of having no mortgage, the new house could offer a better quality of life.
I understand your reluctance, but think about your family’s comfort. A cramped living space isn’t ideal for a growing family.