We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Questions on Selling the current house and buying a bigger house
Options
shubhim
Posts: 2 Newbie
Hi There!
I am currently in a tricky situation, and need expert advice!
Situation - We (me and my husband) bought a new townhouse in 2007 for 500,000$ with 5% down payment (~25000$) with 30 yr fixed loan term (Mortgage/month ~ 3200). We bought the house thinking that the amount we pay for rent at a nice neighborhood for an apartment would go towards our monthly mortgage. Back then, we had planned to buy a bigger single family house (4+ br ~ 800,000$) few years down the line, once our equity had been build on the townhouse. Unfortunately, the market crashed and our house value decreased considerably. Currently, the house is valued at 400,000$ and we owe 420,000 to the bank (Initial Amount-Amount we payed through mortgage). We have again started saving for the bigger house, but we will only be able to put 10-13% down payment after 2 years.
Since we have to buy a bigger house for our family and other personal reasons, I was wondering would be the most appropriate strategy.
1. Sell the townhouse after 2 years - we save the interest on future mortgage for townhouse, but sell the townhouse for lesser value than its original cost.
2. Sell townhouse after 4 years - save a bigger amount for the down payment for single family home. Also, depending on the market we might sell it for higher price than if we sell it after 2 years (but again, depending on the economy we might have to sell it for lower price)
3. Pay 2 mortgages - townhouse and buy single family. Wait for the equity to build on townhouse, and save for single family. Should we be considering buying bigger home in 2 years or 4? Since we are not making any profit from the townhouse, I would like to buy the single family at a relatively lower price.
Any advice would be greatly appreciated!
Thanks a lot!
Shubhi
I am currently in a tricky situation, and need expert advice!
Situation - We (me and my husband) bought a new townhouse in 2007 for 500,000$ with 5% down payment (~25000$) with 30 yr fixed loan term (Mortgage/month ~ 3200). We bought the house thinking that the amount we pay for rent at a nice neighborhood for an apartment would go towards our monthly mortgage. Back then, we had planned to buy a bigger single family house (4+ br ~ 800,000$) few years down the line, once our equity had been build on the townhouse. Unfortunately, the market crashed and our house value decreased considerably. Currently, the house is valued at 400,000$ and we owe 420,000 to the bank (Initial Amount-Amount we payed through mortgage). We have again started saving for the bigger house, but we will only be able to put 10-13% down payment after 2 years.
Since we have to buy a bigger house for our family and other personal reasons, I was wondering would be the most appropriate strategy.
1. Sell the townhouse after 2 years - we save the interest on future mortgage for townhouse, but sell the townhouse for lesser value than its original cost.
2. Sell townhouse after 4 years - save a bigger amount for the down payment for single family home. Also, depending on the market we might sell it for higher price than if we sell it after 2 years (but again, depending on the economy we might have to sell it for lower price)
3. Pay 2 mortgages - townhouse and buy single family. Wait for the equity to build on townhouse, and save for single family. Should we be considering buying bigger home in 2 years or 4? Since we are not making any profit from the townhouse, I would like to buy the single family at a relatively lower price.
Any advice would be greatly appreciated!
Thanks a lot!
Shubhi
0
Comments
-
Is this UK? Not sure if your computer's putting $ in instead of £ or not... Unusual to put them after the figure, so I'm guessing US. If so, this is a UK site, so probably not the best place to ask...
Jx2024 wins: *must start comping again!*0 -
Sorry, it is US. Thanks for letting me know!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards