We have a two bed one bath home. we also converted our garage into a bedroom .We purchase our home about 7yrs ago.for 75,000.00 . We can try to sell it for 180,000.00..I know i'ts crazy,,but that's how much homes went up in our area.. I love my house, but we have a big family now. We really need a second bathroom. and more space..The problem is that even if we sell our house we can't really get a desent home no less than 350,000.00 the payment would be to much for us right now,but in a couple of years we could probably aford it ,but not now..so we were thinking maybe to rent a bigger house and rent ours too. and in about two years we could buy our bigger home.What do you guys think???we have 3 kids and the problem is the potty training and when we are takinf showers and ect...
2006-12-11 19:02:43 · 7 answers · asked by Angie29 3 in Business & Finance ➔ Renting & Real Estate
You shouldn't sell your home... too much risk in spending the money once you've sold the house, unless you put it into an interest bearing account that is off limits for a binded term period, such as a CD account... Besides, you will more than likely gain more equity in your home over time.
You could rent out your house, while renting another bigger house to live in... but chances are, you're going to have to pay a bigger amount of rent to live in the bigger house, than the rent that will be coming in from your present smaller house = a difference you'd have to pay per month to live bigger... besides, with a bigger house usually comes bigger bills... So "saving" more money will most likely not happen.
How about trying to add an additional bathroom to your house? If you don't have any more space to add... You could CONVERT a part of the house into a bathroom (example: walk-in closet into a bathroom, then purchase an armoire to hang up clothes in, or a bigger dresser.)
Then when the housing market stabilizes again, you will be able to afford to get into a bigger house.
2006-12-11 22:08:04 · answer #1 · answered by loststream 3 · 0⤊ 0⤋
Your mortgage would be around $1500 assuming you use the equity from your old home and put it toward your new one. DO NOT ever take an interest only loan. Low payments sound good but real estate does not keep rising hence no equity can be made on the new home unless you are paying principal. Unless you have read all the pages of a loan contract and nobody does, there are terms on some of those loans which will require an enormous balloon payment in a few years. Hence your new home will then become an expensive rental, and the bank will foreclose.
2006-12-12 03:18:38 · answer #2 · answered by Your #1 fan 6 · 1⤊ 0⤋
If you and your husband work full time and don't have the time to take care of all the problems the house will have with the new renters, charge a little less rent and have them agree to fixing anything that will cause problems. You'll probably end up buying new stuff in the long run if there isn't any remedy to them, but renting is a big hassle, on the other hand the rent $ is also good.
2016-03-29 04:10:42 · answer #3 · answered by Keyo 4 · 0⤊ 0⤋
Phooey.... don't say you can't afford it until you look into it!! If you have $105 in equity you will have plenty of money to use for a down payment and get into an interest only loan for a couple years until you can start to make principal + interest payments!
If you bought a home for $350,000 and made a 20% down payment ($70k) an interest only payment on a 5/1 ARM would be $1370. If this is still too much, you may want to consider an Option ARM (roughly $900/month payment). This is a negatively amortizing loan, but at least you would still be home owners with plenty of tax deductions for your interest.
Send me an email or a message on YIM! for more information. I would love to help you out.
2006-12-11 20:02:23 · answer #4 · answered by Anonymous · 1⤊ 0⤋
That's a good idea.
Don’t sell your real estate, though u have problems, u cannot afford a better house.
The price is also flexible, u don’t know exactly the trend of markets.
So, you may start to prepare for loan and move to a new and bigger house by selling the current one.
Personally, I invested all my money to a new apartment where I am going to live. I sold my old apartment and renting a very modest one, while saving money for the bank and paying for the current apartment. U may follow my way too.
2006-12-11 19:09:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
There are huge Tax implications for selling and then renting. The net proceeds from the sale of your house will make a good downpayment on another. Talk to your banker and a Real Estate agent you can trust. Find the agent who got you into your present home.
2006-12-12 00:45:19 · answer #6 · answered by Anonymous · 0⤊ 0⤋
dont sell it, keep it and lease it out and when you ready to upgrade sell your current home and use the profit as a deposit, cos if you sell now you gonna have the money and slowly spend it and when you ready to get bigger you wont have that big a deposit, use the lease rentals you receive to pay your existing mortgage if you have and the rest towards the lease you wish to take out
2006-12-11 20:44:07 · answer #7 · answered by king of spain 3 · 1⤊ 0⤋