I've been thinking about this for sometime and since the housing market here in CA is doing well I might as well take advantage. Here're some pros/cons/facts that I could come up with:
- I'm at least 10 years from ER
- I've been at my house for 6years
- Current interest rate is 3.75%
- Equity (market value minus mortgage pay off) = $200k
- Biggest pro: my RE portfolio will get a nice boost if I were to invest the $200k. It really needs it too as I'm behind for my age (thank you Ms Divorce...not).
- The house, unlike most, has no HOA, Melo Roos and I actually like it
- It has needed minor repairs/upgrades but coming up for a major one: reroofing but probably around $8k and then it'll be good to go for another 10-15yrs
- The biggest con of selling it: I have a machine shop (hobby) in my garage and would hate to lose it and be without
- I get a decent tax write off so I'll lose that too
- I'd hate to exit the CA housing market as it's hard to get back in with avg prices in my area are above $500k for a 1200sqft house and upwards of $800k for a 1600sqft house.
- I hated apartment living, I like room between the houses so I don't hear neighbors, footsteps etc.
- It's a bit further away from the main highway
I really think I want to keep it but that $200k "easy money" keeps tempting me.
Thoughts? What would you do
- I'm at least 10 years from ER
- I've been at my house for 6years
- Current interest rate is 3.75%
- Equity (market value minus mortgage pay off) = $200k
- Biggest pro: my RE portfolio will get a nice boost if I were to invest the $200k. It really needs it too as I'm behind for my age (thank you Ms Divorce...not).
- The house, unlike most, has no HOA, Melo Roos and I actually like it
- It has needed minor repairs/upgrades but coming up for a major one: reroofing but probably around $8k and then it'll be good to go for another 10-15yrs
- The biggest con of selling it: I have a machine shop (hobby) in my garage and would hate to lose it and be without
- I get a decent tax write off so I'll lose that too
- I'd hate to exit the CA housing market as it's hard to get back in with avg prices in my area are above $500k for a 1200sqft house and upwards of $800k for a 1600sqft house.
- I hated apartment living, I like room between the houses so I don't hear neighbors, footsteps etc.
- It's a bit further away from the main highway
I really think I want to keep it but that $200k "easy money" keeps tempting me.
Thoughts? What would you do
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