Live in the Tampa bay area of Florida. Bought a house 9 years ago for 70k and have seen similar sell for 175 to 229 the last 6 months. Want a larger house and found a builder in a location I like and an area that has not been built out yet.
Looking at the market, my hopes are that my house will continue to gain value for the next 12 months while my new house is going up. Would like to sell current house and cash out to pay for the new house. My fear is that the sellers market will turn into a buyers market and drive prices down, making my new home purchase impossible.
Should the house prices drop and my new house drops in value, I would be released from the contract so not worried about that. Would the builder offer me the house at a discounted rate or keep it?
Doing a Refi on my current house to a interest only to improve my cash flow monthly to save up for the move. Thinking of adding the cars to the Refi to let the house pay them off and improve cash flow even more for the next 12 months.
Also want to avoid paying taxes on the money made from the sale so I can invest all of it back into the new house.
New home buyin can be scary. Suggestions?
There is Risk associated with any activity in any field of investing. The key is to do activities that will minimize that risk!
I noticed in your post you are thinking about adding your car notes to your house mortgage! Here are my thoughts about that I would personally pay extra on my car notes and pay them all off ASAP. A car is not an asset it is a liability. Your house went up in value over the last year what did your car do?
Looking at home appreciation in Tampa area it seems to me that home values went up 19.05% meaning that if you could pull out enough equity in your home to pay off your cars that would save you a substantial amount of money. My corporation (me) owns over a hundred houses and I drive a 2001 Chevrolet caviler z-24 not a Mercedes nor a Lexus I look forward to a profit in the long haul on home values and not on prestige of new vehicles.
That being said I would look at www.bestplaces.net and get a good Idea of what is going on and look into renting out your house now and buying the new one as well or a bigger one (or 5)… Look at it like this there has only been a few times in America that an area has crashed over night Las Vegas as one of them. On the other hand while rates are low why not buy buy buy.
Best of luck to you in your decision!! R.E.O. Consultant’s
Also ask about builder incentives!
If you are talking about buying a new house for your family to live in? Then you need to do what feels right for your family. If the market changes and the new house is more expensive, you are still going to move from the house you are in because it no longer fullfills your families needs. You are now divorced from that house and should put it on the market. I would in no case buy cars with a mortgage, just don’t like mixing types of debt. I don’t buy new houses to live in. I like a built out neighborhood so that I know what character the new subdivision has. That way I know if I want to raise my family there. (Just my snobbish way of looking at my world)