My husband and 3 children and I live in a pretty small house (1300 sq. ft) We have always felt a little cramped in it, but have made it quite cozy. We have a nice private lot, in a nice neighborhood, and always planned to add on. For about the same price as adding on , we could move to a 3000 sq. foot house which is a lot nicer and new house. But we are paid off on our current house. We cannot decide if we should just stay here and have no mortgage,, stay here and add on , or move into the new house. If we want this new house, we only have a couple days to decide. I am so stressed about this decision I could burst. My husband is 45, I am 42. Should we take on a mortage at this stage of our lives? (we would have to borrow about 200 thou.
Which is more valuable?: finally moving into a house with all the space we need and liking it, or staying in a house that we are constantly wanting to upgrade, but have total security with???????
2007-02-12 00:41:25 · 7 answers · asked by Coco 4 in Business & Finance ➔ Renting & Real Estate
If the house you have works for your family I would stay. By buying the new house, you will have:
1. Mortgage payments
3. More property taxes
2. Higher Insurance due to more expensive house
3. Higher utilities due to larger area to heat/cool
4. New furniture to fill up all the empty space in the extra 1700 sq. feet
5. Increased future maintenance costs...painting a large house vs. small...bigger furnace to replace...larger roof to re-shingle, etc...
I would suggest you stay put and save/invest for retirement and kids college.
What if someone loses a job? Gets sick? Injured? Having no mortgage would be such a blessing.
2007-02-12 02:13:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
OK, lets look at the overall picture. First- take a look at your area/neighborhood- has it changed a whole lot since you first purchased? Have the homes changed much? Call an agent and get some comps on the houses here. If you over build for your area chances are you may not ever recap your investment. Now look at the mortgage on both houses/ one has a lot of equity and getting into a new one obviously costs money- see what the builders are offering for incentives. Closing costs/pool/appliances> It all varies. Have the real estate agent run a net sheet- on your old house- this will tell you how much app, you will walk with. Talk to to new home lender they pretty much know how much you will spend per month for a mortgage. Do the homework/ make an iinformed decision, however take the agent with you upon signing a contract of purchase on a new home. Sure hope this helps you.
2007-02-12 09:33:08 · answer #2 · answered by sylviavnpttn 5 · 0⤊ 0⤋
We are in the EXACT SAME situation!! Family of 5 in around 1300 sq. ft. home. We have come to the conclusion that we just don't want to have the mess that building an addition comes with. My husband and 3 kids have TERRIBLE allergies. Plus I don't want it to look like we added on. So we have decided to just move into a larger home. Our kids our 9,6,and 1 and I know it will be more cramped the older and larger they get. Do you what your gut says. Just consider the mess that comes with ?remodeling? GOOD LUCK!
2007-02-12 12:36:12 · answer #3 · answered by ? 2 · 0⤊ 0⤋
If it was me in your situation, I would try to keep the house that I was living in, because it is paid for, and use the funds available to me to upgrade or put on an addition to the existing house. If you have the room available for an addition that would be the better way to go, and the house would still be yours. Of course, you did not mention if you would have to borrow money to do the addition. If you do then you will owe the $$ regardless of which way you choose, so go for what suits your needs and desires the best! Good luck!
2007-02-12 08:48:50 · answer #4 · answered by dragondave187 4 · 0⤊ 0⤋
It's tough. I would say, if the kids are still young (like oldest one being 10-12), the chances are you will feel you need more space later on. If the kids are already older (like oldest one graduating soon), and you have managed this long, then, more likely you can live with it. Also, consider renting your current house out because later when the kids are all grown, you can sell your bigger house, make some profit and come back and live mortgage free.
2007-02-12 08:53:27 · answer #5 · answered by spot 5 · 1⤊ 0⤋
At your age you should go with the mortgage and bigger house. If you are financially secure in your jobs go for it. The current interest rates will look good in the future. The bigger house will appreciate more. I bet all the rooms are bigger and ther's more closets etc. Look at a 15 year mortgage.
2007-02-12 10:06:14 · answer #6 · answered by zocko 5 · 0⤊ 0⤋
undecided; i,d go for it , i am 63 , have an opportunity to buy the house next door to us , it larger than our house , and we are only 2 , but i,m going for it,. sell your house and go for it , at 42 , you still have allot of time left , unless you both have medical problems . GO FOR IT
2007-02-12 08:57:33 · answer #7 · answered by david w 1 · 0⤊ 0⤋