What would you do - stay or buy new?

[Anonymous]

We have a house with a 2.4% interest rate that we refinanced a few years ago. It is a 4 bedroom/2.5 bath on a 0.25 acre lot. We bought it for around $700,000 10 years ago and have put in probably $200,000 in renovations give or take over the past 10 years.

We have been eyeing a road near us that we love. A house just came for sale and the house itself isn't an upgrade from what we have now - might even be a downgrade. But the property is amazing. I don't think we could swing much more than $1.2 million depending on how much we get for our house. Houses take decades to come up to market on this street.

What would you do? Stay in the house you have already updated a ton and have a low interest rate and low mortgage on or would you try and throw caution to the wind and go for the new house?

[Anonymous]

Stay. Do you want to take on getting a house properly renovated again? Take the hit on transaction costs? Just to hop to a different street near you? I'm not hearing a convincing argument, at least from what you've written.

[Anonymous]

You have a low interest rate, put six figures into renovations, admitted that this other house is potentially a downgrade. Why move?

[Anonymous]

Go for the new house that you love. You'll do well on the sale of your house in this low inventory market.

[Anonymous]

What about the other property will bring you more joy than currently? Can you spell them out? Could you rent your current house? This is a maybe, depending on how much joy your new place would give you. Is it appropriate for aging in place? We need more detail.

[Anonymous]

Stay and be happy with what you have.

That’s what I’d do. There will always be nicer properties and nicer houses than what I have.

[Anonymous]

Anonymous wrote:Stay. Do you want to take on getting a house properly renovated again? Take the hit on transaction costs? Just to hop to a different street near you? I'm not hearing a convincing argument, at least from what you've written.

The grass looks greener on the other side.

[Anonymous]

I think about this possibility all the time. I have a house I bought with a 2.75%. Good neighborhood and all that. But it's not really where I want to live and I bought it with the idea it'd be a stepping stone up to the type of house I always wanted to have, including on certain favorite streets/neighborhoods.

But the reality is now nearly 8% interest rates and to make it work I'd have to throw more money into the down, probably paying 60% down and would have to close out one of the investment funds. And things would be tight fir a bit. But I'd have a house that would make me much happier. Maybe. Who knows.

Stay in dull and boring with plenty of money in the bank versus a house you'd love and things are tight for a while. Not an easy decision.

[Anonymous]

Anonymous wrote:I think about this possibility all the time. I have a house I bought with a 2.75%. Good neighborhood and all that. But it's not really where I want to live and I bought it with the idea it'd be a stepping stone up to the type of house I always wanted to have, including on certain favorite streets/neighborhoods.

But the reality is now nearly 8% interest rates and to make it work I'd have to throw more money into the down, probably paying 60% down and would have to close out one of the investment funds. And things would be tight fir a bit. But I'd have a house that would make me much happier. Maybe. Who knows.

Stay in dull and boring with plenty of money in the bank versus a house you'd love and things are tight for a while. Not an easy decision.

OP here - I actually really love our neighborhood and love our neighbors for the most part. We are torn because we have young kids and are behind on retirement and college savings. We make a lot of money but have been aggressively paying off our college loans as well. Not sure it makes sense to take a financial risk for a new house but I know this is probably once in a decade chance to get on this street.

[Anonymous]

It depends on how the new house will affect your financial priorities. Are you on track with retirement, college savings, emergency funds and general savings?

[Anonymous]

I would stay in the current house and retire early.

[Anonymous]

I’m of the belief that life is short, and energy to move is also in short supply the older we get. Who knows what the rates will be tomorrow. You will almost certainly do well with the sale of your current home, possibly making the mortgage payments for the new home about the same as what you currently have. Then you can take the upgrades one step at a time, depending on what you can swing financially.

I’m just saying that if you are able, you should love where you live!

[Anonymous]

Stay

[Anonymous]

Of course, financially, it makes the most sense to stay. But life is short. If living on the other street is going to make you happy, go for it. Assuming, your retirement savings are on track overall, enjoying life now, while you are younger and healthier is of more value (in my eyes) than saving every penny for retirement that you may or may be able to enjoy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think about this possibility all the time. I have a house I bought with a 2.75%. Good neighborhood and all that. But it's not really where I want to live and I bought it with the idea it'd be a stepping stone up to the type of house I always wanted to have, including on certain favorite streets/neighborhoods.

But the reality is now nearly 8% interest rates and to make it work I'd have to throw more money into the down, probably paying 60% down and would have to close out one of the investment funds. And things would be tight fir a bit. But I'd have a house that would make me much happier. Maybe. Who knows.

Stay in dull and boring with plenty of money in the bank versus a house you'd love and things are tight for a while. Not an easy decision.

OP here - I actually really love our neighborhood and love our neighbors for the most part. We are torn because we have young kids and are behind on retirement and college savings. We make a lot of money but have been aggressively paying off our college loans as well. Not sure it makes sense to take a financial risk for a new house but I know this is probably once in a decade chance to get on this street.

DP
Yet, you didn’t tell us anything special about the street.
Is there an ocean or Mountain View that is spectacular ?