(background) My husband and I bought a home in NY, nice suburban area. We took a year to fix it up ourselves and it came out beautiful. (Our jobs as Realtor and Mortgage broker allow us the flexibility time wise). It is now worth over $1mm, we did try to sell and rent it. We had an offer for over $1mm (just over), but we were advised by my dad (a RE investor) not to sell, but to rent instead. Plus, we wouldnt be making enough profit for all the $$ and hard work we put into it. I was an accounting major in college, and knew that since we held onto it for 1 year as our primary, we could rent it for a few years, and have it be our primary for 1 additional year (havent figured out exactly how but thats not the point), and we still have tax savings (2:5 years primary to avoid long term gains tax). Long story short, we rented it for a LOT to cover our large mortgage. GREAT tennants, pay rent early- all is well!!! That investment is a long term investment, b/c we know the area has never done anything but appreciate in even the worst market.
Property #2: We bought a condo nearby in NY. We got a good deal on it, spent 1-2 months fixing it up- its beautiful now and worth much more. Its the most desireable in the complex (we know all about it here as weve been looking here for 3 years for a good deal) We now live in the condo, and just found out that the town is considering OK’ing a additional 46 units to be built here. We dont know what to do now… We were somewhat aware of this information when we bought, but for some reason werent swayed. Now, the plan was to live here for a few years and then rent or sell. BUT- we are afraid that if we wait a few years, or even 1 year, the new condos will hurt our value. Its hard to say what they will do. Supposedly, the common charges will decrease. BUT- all the existing units are from 1980’s-90’s. (ours is one of the newest, and now after the renovations- nicest - and most private/townhouse style not a stackable like the neighbors ). But the new ones will be considerably newer, and we are worried it will still hurt the saleability or rentability. There are currently like 25 units for sale in our complex right now- a LOT - we think people are running for the hills b/c of the new development. They are moving, slowly, and most are not like ours (we are in the Biz and know a good buy when we see it…)
SO- we ran test ads for rent and sale. I literally only ran 1 ad with NO pics on Craigslist. 1 ad- OK- i have been flooded w/ emails and inquries. ??? We have it for a high rent, we would be making $1000/mo after expenses. But, is it still a risk then to hold it with the information we know about the new units coming in? Or do we try to lock in a good lease and forget it? Or do we just stay here and enjoy it and forget anything else?
If we rent or sell, we have to find soemthing else, and were not 100% sure if we can get a 3rd mortgage, b/c we are in the business, and lender guidelines are strict for those in the Biz. Im sure we coudl do it, and pull a down payment from a Heloc on another ppty etc- and continue building our net worth… and we are young, and have no kids yet. We figure w/in 5-8 years we will sell most of what we have and buy something nice for ourselves, (but who knows what will happen in that time period…lol…)
Thanks for ANY input- i know this is long, but had to paint the full picture. We are an odd couple i know but we love this life!