re: Selling a House and buying a new one with these interest rates.

I’d go option one.

just me.

quote:

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Nice options you have there. Youve been diligent with your savings and put yourself in this position that few others have. You need to assess your risk depending on a lot of factors only you and mrs rize know. For me, Im going option 1 because of too many unknowns in the next 3-5(ie election yr bud!)But thats just how i assess risk. You get your 100k and then some back in 3-5. Do you see yourself having similar liquidity AND growth on that 100k during that time? Good luck

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As long as nothing drastic happens I should be fine. I keep way too much money in my checking and savings making .001 interest. It’s a problem I’ve had for years but started when I began looking for houses before I built my current home.

We buckled down on savings getting prepared to buy or build a new home and just let a good amount of money sit earning no interest. He we are a few years later and I’m doing the same thing. I’d rather throw half the money into a new home that I want and out the rest in a high yield savings.

Only reason I’m hesitant on the option 1 is what’s closing cost on a 500k house and how much different for something in the 900k to 1 mil? If I’m there for 3 years then I’m paying closing cost out of pocket for something around 900 to 1 mil. If I buy that now the closing costs and moving expenses are covered.

You could buy a house that has a mortgage that’s transferable or assumable now like a FHA loan

If the BR property is going to appreciate, what about keeping the current house with the cheap mortgage (@ 2.6%), renting it out for a while and you renting in Texas?

I personally don’t ever want to be a landlord but it’s a shame to walk away from that cheap money.

There is not great answer and nobody really has a best option for you.

I'd lean toward C and watch for a while getting as short a lease as you can. Hard to get less than 12 months, but occasionally you find. After you hear the lease term, ask them if they will reduce it if you pay half the lease up front. The mgt companies will likely say no.

With option B, you keep a good amount of cash. If you go that route, I would not stick just in a MM, because rates could drop and then you would have a high mortgage rate and could end up with less than you might think in two or three years. I would lock in some 2 & 3 year CDs and maybe even longer. With brokerage CDs, you could get out if you wanted and if rate drop, you would likely not lose anything. Cash can be a good thing when hard times hit.

Good luck.

Well I finally decided to put in an offer on a place.

After living here since December my house finally sold in June and I moved my stuff into storage. I’ve been looking in the area since I started this thread and ended up buying a house that will need some updating but it has a 1.57% tax rate vs 3% I was looking at in new neighborhoods.


Offer was accepted and inspection this week.