Reply to Need to figure out if we should stay in our house or sell it

Forum Index » Real Estate

Reply to "Need to figure out if we should stay in our house or sell it - please help me do the math"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I'm trying to figure out, objectively, if it makes financial sense to stay in our house or buy a new one.  Whatever decision we make would be for at least 11 years.

- We've been in the house for four years.  Interest rate is 4%.  It is a barely affordable mortgage payment but we're sort of managing.  It is very old and needs a lot of upkeep and updating (we've already done a lot of it).  We would probably need to put in another $50-100K over the next few years, but given the age of the house we'll never be "done."
- The neighborhood is good, but: schools are 2nd tier (but very good), and there is one environmental factor about the house that we really dislike.  
- If we sell this house and buy a new one, there's nothing more affordable in our price range.  It would basically be for around the same price as we sell for, if not for around $50K more.  
- Our house is not appreciating as quickly as those in the slightly more desirable neighborhoods we're considering.
- We probably wouldn't be sale-ready until next Spring and would spend the year on lower-cost maintenance and upgrades, but not do major updating.

So what do I need to consider to do a real calculation of where we should sell or not?  I know that I need to assume a higher interest rate, closing costs, and commission, but what else do we need to consider financially, and how do we put it all together?

I would like to do a simple mathematical calculation to make it a more objective decision.  Would appreciate any help![/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