Love the Home You’re With. Was : Real Estate For Sale by Owner

[45th Birthday]

Two apartments in two cities when we were first together for a year.

First house: small starter that needed tons of work, most of which we did ourselves. Sold in less than two years for a few thousand more than we paid.

Moved halfway across the country and lived in an apartment for a few years.

Bought a large house that needed work. Put $645K total into it and sold it for $725K after ten years to move 1/2 hour away for better schools.

Paid $1.2 million for this house and did major addition/renovations. Total in: $1.75 million. Today's value: maybe $1.2 million. Ouch! Have loved living there.

During this time, bought second house in a booming place. Currently, house is worth more than double what we have in it (paid $850,000 and have put a modest amount into it). Unrealized gain: maybe $1.075 million.

Just bought a third place, a condo. Same unit in a less desirable location sold within two months for $250K (17%) more than we paid.

Overall, gained a lot more than we've lost, but can spend that money on food or fuel.

 

[Ronstar]

We started out in an appt, then built a house in 1984, sold it when we built our current house in 1994. Bought our az condo in 2002. I'm feeling the need to downsize from the house in the next ten years, hopefully resulting in 2 small places.

 

[RobLJ]

3 homes; we've lived in the last one 25 years and paid it off last year. Likely to sell it before moving to the PacNW next year; after that will probably lease for a while.

 

[Calico]

Rented all my life until I bought my house 15 years ago. When I leave here it will be to move to a CCRC - hopefully not for another 20 years or so.

 

[IMD801]

One house so far for about 7 years. All apartments before that. DW and I are in our 30s.

Is it naive to think we can make this our "forever" home? Curious what the more experienced folks think.

 

[ProspectiveBum]

One house so far for about 7 years. All apartments before that. DW and I are in our 30s.

Is it naive to think we can make this our "forever" home? Curious what the more experienced folks think.

A home is such a personal thing, that I think the only person who can answer that question is you yourself. You can try to think of some variables that might affect the long-term viability of your current place:

Do you have (or plan to have) kids? If so, is your current home in a good school district? Likewise, is it in a safe location (say, not on a busy street), and is there adequate room for the kids to play outside? Plenty of people raise kids on busy streets, but you may prefer a different arrangement.

Is your current home central enough that you could find other jobs nearby if you lost your current job?

Imagine yourself in 40-50 years. Is your home age-in-place friendly? Those stairs which are no problem now, might be objectionable as you near 80. If necessary, can a wheelchair fit through most doors and hallways?

Is the house and/or property large, requiring lots of maintenance? My MIL is in her early 80s, and in the last few years her 1/3 acre property has really become way too much for her to keep up with.

At the end of the day, there are people young and old all over the world living in almost every situation imaginable. It's really up to you as to what you prefer.

 

[FIREd]

One house so far for about 7 years. All apartments before that. DW and I are in our 30s.

Is it naive to think we can make this our "forever" home? Curious what the more experienced folks think.

Depends. Every time we moved, it was to take advantage of better job opportunities. I'd like to think that, at age 40, we have finally reached our final destination. But, realistically, who knows? I certainly did not foresee the last move and I really thought we were living in our forever home.

 

[Animorph]

Two apartments over 4 years to start.
Bought first house 1981 while still single. Married the next year.
Bought second and current house in 1991. Two engineering salaries and a second kid on the way pushed for a move up.

I never had to move from this area throughout that time, which certainly helped our house longevity. It did really bug me to have to pay 6% or 7% for each move. Though I don't think that would have been a major factor. An LBYM house is probably more important than how many houses you had, but moving certainly has plenty of associated costs.

 

[gardenfun]

First house in second year of marriage in 1981: $62,500 in a suburb of Milwaukee. Mortgage interest rate on a VA loan: 13.5%. Remember those days?

Second home, relocation for job in 1982: $68,000 in Madison, WI. Lost money on sale of Milwaukee home because of the “points” and closing costs not amortizing well over only two years.

Third home, also for job relocation to northern NJ in 1984: $90,000. Sold for $150,000 in 1991.

Fourth home, “move-up” in NJ, also to be closer to jobs with two pre-schoolers at home, 1991: $272,000. Sold for $290,000 in 1994

Fifth home, big move to Bay Area, CA, another job relocation, 1994: $375,000. Sold 2001 (divorce) for $650,000

Sixth home, smaller “duet”, same town in CA (keep sons in same school district with friends), bought in 2001: $400,000. Went to crazy bubble value of $700,000 in 2006. Sold for $560,000 in 2010 after I lost my job and became semi-retired at 56.

Now renting in another SF suburb and very happy. The only thing I miss about home ownership is renovating bathrooms and kitchens! Call me crazy…

 

[sengsational]

One house so far for about 7 years. All apartments before that. DW and I are in our 30s.

Is it naive to think we can make this our "forever" home? Curious what the more experienced folks think.

The first time, the job was the factor. The second time, family was the factor (moved back to where spouse's parents were).

Going forward, avoiding state income tax may be one factor. Family would be another (this time my side of the family).

We have more space than we need here now that the kids are gone, but it's not all that expensive. By that I mean, if we moved to a smaller place, I doubt that we would end up with a lower mortgage and property tax bill.

 

[eta2020]

Look today at Kiplinger - Interstitial

Today published:

Kiplinger - Interstitial

It is not that everybody should live in exactly one house. If you get promotion and company pays closing costs then moving around makes sense. For most people it is bad financial decision.

 

[eytonxav]

Before getting married owned a coop and then a condo. After getting married, 3 homes due to job relocations (was in last of the three for over 20 yrs), then a downsized home into retirement. Hopefully that will be it.

 

[sunnysideup]

1984 starter home in NJ (we assumed a mortgage at 11% because going rates were 14% )
1987 bought a larger house in NJ that needed total cosmetic redo, spent 11 years redoing bit by bit. Mortgage was larger but rate was 7%, so payments didn't increase terribly.
1999 after divorce bought townhome in NJ for same price as sale price of home. Similar mortage payment to prior house, rate was about the same. Remarried and together we refinanced to 4.5%, and then accelerated payments to pay off mortgage in ~8 years.
2014 Closed on new retirement home in FL, beautiful home 20% smaller and cost was half of current home. Will leave NJ by the end of the year with a nice bonus to invest after sale is complete.

When I look at many of my friends who have made very good salaries, but are not FI and who may never be, they always bought houses that maxed their loan approval. Bigger must be better and if you are in the most expensive town with the "status" and highest taxes, it certainly makes you look rich--LOL. Well, not only is the mortgage payment big but the upkeep is big too.

I am not sure that length of ownership is as important as LBYM in choosing houses and in which town you reside. Folks who need to have a big house with a fancy address will never be millionaires next door....the whole goal is looking good to the outside world at the cost of their pocketbook.

 

[Rustic23]

Married 47 years, Moved 19 times. Bought four homes, own one. The bank owned more of the rest than we did. Longest time in any home 9 years. Eight in current place, but going for a new record. Last one we hope. First home $35,000, current about ten times that, but free and clear. I don't think it is how many you own or how much you move, it is how much of what you live in do your or could you own. I guess it also matters if you are forced to move when the market is going down, rather than up like we did. I believe that two of the homes we lived in went through foreclosure in the last bubble. Thankfully it was after we sold them.

 

[mrfeh]

We've been in our second house for 6 years. First one was for 17.

Anticipate one more sale/purchase...

 

[Schutzie]

HMM
Bought my first house in 1973 for $18K. It was in bankruptcy from an interior designer. I could see why; kitchen had ORANGE cabinets, master bedroom was black and deep purple. Sold it a year later for $28K. After I painted it.
Second house in 1977 for $28K, sold it in 1981 for $34K.
Third house in 1982 for $64,000 Sold it in 1990 for $87K.
Fourth house in 1990 for $122K sold it in 1993 for $157K
Fifth house in 1993 for $160K sold it in 2003 for $225K
Sixth house in 2003 for $188K. In 2007 it appraised for $320K, probably worth about $210K now.

Can't complain about the returns on most of them, but all were places to live, not investments.

We'd like to sell this house and move to Denver, but the problem is the difference in housing markets; Colorado is about 50% higher than Arizona so moving without a mortgage will mean buying a fixer upper or downgrading considerably.

 

[MBAustin]

Now renting in another SF suburb and very happy. The only thing I miss about home ownership is renovating bathrooms and kitchens! Call me crazy…

Funny, I was just thinking about this the other day. I have remodeled kitchens 3 times and now really think I'd have a tough time renting unless the kitchen was pretty much exactly the way I want it. This last time I got it pretty much perfect.

 

[Meadbh]

I own several rental properties but they are investments.

I moved a lot in my early career so renting was the obvious choice. By 1991 I was ready to buy my first home in a mid sized city. It cost $85k, and I had a $60K deposit. I paid off the $25k mortgage in 18 months. I did not see the point of paying 8-10% non tax deductible interest! I chose a modest home in a nice neighbourhood. It was a fixer upper but had a lot of character. Stayed there for 20 years, 18 of them debt free and made some improvements. Sold the house for three times the purchase price. Moved to an area with higher property prices. Paid slightly more for my second home than I realized on the sale of my first. Cost of living in modern condo in a milder climate is considerably less than that of living in an old little house on the prairie.

I have always tried to avoid being house poor. If I were to win a mansion in a charitable lottery, I would probably take the cash option (no tax payable) and stay put.

 

[anethum]

I've only owned one home that I've now lived in for 27 years. The area has become ever more desirable and developers covet my house to tear it down and build a McMansion on the lot. While my solidly-built hovel (less than 1,200 sq. ft.) would absurdly sell for 7 times what I paid for it, my property tax ($8,500 this year) is 8 times what it was when I bought it, and my assessment doesn't even reflect its current market value. It's strange knowing that any money I put in it will not be recouped, because the house will almost certainly be torn down when I sell it. I'll stay in it as long as my elderly parents (both in their 90s) live just a few miles away because I'm constantly going over there now to help out. There's a good chance I'll be forced to sell someday due to the ridiculous property tax. It's a shame, because I like the house and love being able to walk to almost everything I need, yet still live on a quiet street and have a productive vegetable garden. In fact, the sunny yard with good garden possibilities was a primary reason I bought the house.

 

[stephaniee36]

1991 or 2 first house pd $56K in KY
1996 divorced first husband
1997 sold 1st house for $72K (moved for work)
1998 Bought 2nd house with now 2nd husband for $135K
2002 sold 2nd house for $155K and bought new home for $245K
2004 bought rental house for $72K (still own and have had 3 tenants in 10 yrs)
2004/5 bought house to flip fo $56K and sold 4 months later for $101K-didnt make as much $ as planned but did make some
2005 bought vacation home in Gulfport, MS 30 days before Hurricane Katrina for $172K-($30Kish in damage...still own, but have refinanced and plan to keep/use as vacation home
YESTERDAY closed on new home for $359K-foreclosure, great neighborhood, house needs work though.....
in 2 weeks sale of home purchased in 2002 closes for $280K

 

[chris66]

I definitely favor fixer-uppers, and stay in homes about 10 years (although at age 48, I'm hoping my current is my last)

Bought my first house in 1989. Closed a couple of weeks after my 23 birthday. It was a 720 SF 2 bedroom bungalo. But, PI and property taxes came to less than $400 a month. I had privacy, a yard for a garden and a big dog, and an attached garage for security. Stayed there 12 years, even though I was making 5 times what I had made when I bought the house. Had fixed it up really cute. It sold in a day, even though it wasn't in a desirable neighborhood. It was really time for me to move to a nicer area. Didn't lose any money, but didn't make any either, after accounting for what I put into it.

Bought a bigger ranch in the burbs near work in 2001. House payment quadrupled to $1600. House was built in 1972, and in a very desirable neighborhood, but previous owners had not updated. I had visions for what I'd do to that house, and had figured I'd stay there for a long time, but I met my husband that year. Sold it with enough to cover relator fees, and a little extra, but no windfall by any means.

Moved to husbands home in the city of Columbus. He had bought it in 2001. It was a Victorian home in a desirable, walkable neighborhood. It had been built in 1880, and updated in the 1980's, but was dated and had an inefficient layout. We updated the whole house together. Knew we'd buy a different home to retire to.

Researched areas for several years to determine where we wanted to buy our retirement home. Decided on Hermann, and bought our home here in 2012. It's a 1973 ranch, mostly original -- so I can do the remodeling I love. Figured we'd move around 2016. Got laid off in 2013. Home in Columbus sold in a day. Equity from sale paid off mortgage on our current home. We briefly also rented about an hour away for a job I had found, but I decided to retire and devote myself to the home remodel. We're doing about half of the work ourselves. We don't plan to move again (although life sometimes changes our plans).

I love creating beautiful homes where people can enjoy themselves. I love the creativity and personal expression, despite the fact that the work kicks my butt a lot more than back when I was in my 20's. You can see my current project on houzz (Chris). The house will be done within a year. Then I can turn my attention to the garden. That won't be done until I die...