A little over seven years ago, my wife and I bought the house that we currently live in. At the time, the purchase was driven by a few things. 1.) The character of the home (a ’70s ranch style with plenty of space), 2.) the cost (around $100k), and 3.) the close proximity to my in-laws (which is actually not as bad as it sounds). But here’s the thing: while we still love the home the property value has more than doubled and with new subdivisions being built nearby, looks to continue that trend for a while.
As a young family with student loan debt, a small car loan, and a few other miscellaneous debts, this seems like the perfect opportunity to “cash out” and start fresh with zero debt. The problem is, we would need another place to live and, with prices higher than they were seven years ago, I almost feel like the cost for a new-to-us home would negate any progress that we made on paying down debt.
Anybody faced this dilemma? Even if you haven’t, I’d love to hear your thoughts!
My grandmom always thought of homes as an investment and never a “forever” decision like many people. Its an opportunity to build wealth. With that said, I think if you’re not tied down to the house so much emotionally then go ahead and sell. I would look into other areas that are affordable and wouldn’t eat up the money you earned or a an area that is up and coming so that you’ll be in the same situation a few years from now.