Should I sell my house?

Im waiting for the more financially savvy people to respond so I can hear what they say but off hand and without knowing any other details like your plan on where to live in the short term among other things, I wouldn't.

What happens if the girlfriend thing goes south? My house is up about 100k in 2 years but I couldn't move anywhere right now and get much because it's all relative. Also my rate is 2.6% so there goes that if I sold as well. Again, looking forward to learning what others write but I look at home ownership right now as a safe harbor for what is happening with real estate and housing. I wouldn't want to be renting or looking to buy right now at all.

 

Move in with her and rent yours for a year.

 

I'd expect housing prices to retreat some though not to the extent that happened 10-15 years ago. House prices are cyclical (like most things financial). I will tell you that trying to time the market is a very good way to go broke. Real estate tends to trend upwards over longer periods of time so until you and the gf decide to move in together, I wouldn't sell. Remember also that you won't see the full profits from a sale since the seller usually pays the REA commissions as well as any improvements as part of the sale. It'll cost you ~10-15% to sell.

 

I live in a high retirement area. I just don't see it coming down where I live but that might not hold true for you

 

It’s a really complicated question.
Different markets behave very differently, some have already fallen 25 percent, others are still rising. Even within a town there can be big differences based on crime, a new plant opening nearby, a road expansion etc. and if rates rise or fall more than expected that will swing things too. Or the economy slows down more than expected, which could lower rates but depress demand.
My advice is not to worry about timing the market, and do what’s best for for you personally.
HTH.

 

If you're on the fence you can always list it high and see if someone bites. That may make the decision for you.

 

Just from anecdotal stuff I hear, the market isnt as 'hot' as it was a few months ago. A few people who probably overvalued their homes arent getting bites and have had to temper their (slightly unrealistic) expectations on sale values.

 

I second this, rent it out while you try the 24/7 thing

 

I agree with renting the house and moving in with the girlfriend. If you mortgage payment is as low, you can make a nice, monthly profit while continuing to pay down the mortgage, building equity that way. You also have a place to go back to if the unfortunate thing happens with the girlfriend, and the relationship doesn't last. But if you are truly thinking marriage, and years into the future, consider what the value of the house might be in 10 or 20 years. And how much less the principle on your mortgage would be at this time. And how much secondary income you could make by renting it.

 

As an example, a 1700ish sqft 3/2 in palm coast sold for 395k in October. They are still going for 325k and up. Way overpriced but northerners are coming here after retiring on a northern income scale and inflating the market because they are overpaying for what locals were spending on the same market.

 

Yup. Rent it out and save the income as a future nest egg. If you sell down the road and take the equity you will still have cash on hand if the result of the sale turns out to be a relatively net even in the event the market doesn't come down.

 

Or they both rent their houses out, buy a van and travel the roads, live that #VanLife

 

Not that it will happen to you,,,

Live with your girlfriend for a year and get married then sell and buy with her.

You have to think about the what ifs the main one being what you can do if the relationship doesn’t work out. It happens a lot and can set you back financially.

Some things to consider is the cost of a use or new home vs yours.

Construction materials are still elevated.
New home loans carry a higher interest rate.
If you build where will you live? Rent is high.
What is your current house payment vs a new one?


Look at the areas you may consider moving to. Check out the current used home prices and find a coupe new subdivisions and see what they are getting for new homes.

Do houses in your area rent well and for a decent price? I look back at a couple similar circumstance and wished I had kept a couple places I owned rather that sell. Rentals can be a good income if you don’t mind the hassle of being a landlord.

Sit down with a pen and paper and list every positive and negative then compare them.

Good luck

 

This is an unpopular opinion, but holding and renting creates a supply imbalance and further drives up home prices and inflationary problems.

If you believe in passing along a starter home to a young family to start a life, consider a sale and be happy with your girlfriend and with your decision.

Attachment to the past and a preparing a fallback position might result in sleeping on a couch and developing space rockets and cars.

— Elon Musk, internet anti-woke advice expert