I purchased a home on December 31, 2003 (had to close or loose the incentives) in a quiet subdivision. Now, subdivisions are cheaper subdivisions popping up around us. Had my home appraised and I'm comfortable with the figures. My question is, should a downsize by moving into a cheaper home in another subdivision and move the difference into the market? Or, should I continue an aggressive 6 year payment plan on my home and accept the appreciation of my home as the return on investment? I'm thinking the market will have a higher rate of return over the next six years than my home because of all the new subdivisions that are going up. WHat's your opinion? CardKid
You "PROBABLY" will take more of a loss for a quick move than waiting a few years... Are the "OTHER" subdivisions a BETTER house (BIGGER) for cheaper??? Or do really need to DOWN SIZE??? You have to SELL and BUY in the same week...BOTH HAVE MANY FEES
The other sub-divisions offer a mix of homes from different builders with really attractive starting prices. The difference is our section of our sub-division is comprised completely of 2x6 constructed homes (Hacienda Builders). I bet that has some significance to the values of our homes. I could purchase a cheaper home and rent out my home. But, the Homeowner's Association requires that we live here at least 12 months before doing so or we'll be subject to fines. Some of the other sub-divisions require six months occupancy before renting it for investment purposes. If I continue at my present pace, my home will be paid for in six years. At that time, I could become more aggressive with investing. The downside is, I could miss out on up to six years of double-digit growth if the economy improves. I don't think my home will appreciate at the same rate. The upside is, I become mortgage free and save over six figures in interest. That money could be used to continue funding my retirement. I'm turning 35 Monday and I'm at the crossroads, George. CardKid
