Reply to Upgrade house or pay off?

Forum Index » Money and Finances

Reply to "Upgrade house or pay off?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Weird thread, I know, but we've got about 500k in equity in a 950k house and have been kicking around whether or not we want to move or stay put and pay it off.  I know we'll pay cap gains tax on it when we sell if we stay since we'll have &gt;500k in equity so that's a factor, albeit not a huge one.  Mortgage is 450k and our HHI is around 350-400k so the payment is very manageable.  We've been looking in the 1-1.3 range and would probably put 500k down so would end up in a 500k to 800k mortgage if we decide to move.  Option B is to stay put and pay this house off, but if we do that we will want to throw some significant money into it (exterior upgrades, new kitchen, redo at least 1-2 more bathrooms, etc.).  [b]Probably somewhere between 100-200k.[/b]

Any opinions on what you would do in our shoes?
[/quote]

I'd renovate.  Why?  You'll spend 100-200k on capital gains, real estate commissions, movers, window treatments etc.  I would only move if I wanted a different location.  Also I'm assuming you'd start over with your mortgage which is another disadvantage to moving.  I'd stay put and enjoy not being house poor.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics