I will be moving soon. See here: http://www.early-retirement.org/for...ement-on-the-horizon-82200-2.html#post2032259
I am looking to buy a house in a particular community in FL and have the choice of a houses from $350K to $550K. The $550K houses are quite larger with lake views and more land. My current house should sell for 450-500.
Putting an extra $200K into real-estate at the start of a probable ER scares me.
My question is: should I consider the extra $200K to be like money in the bank? If I need it back, can I just downsize later, and enjoy the better house for the next 10-15 years?
I am aware of the costs due to higher taxes and the future closing costs. That is no issue.
These houses are in a community with an HOA. The values seem pretty rock solid and I'd be downsizing in the same community.
So - is the extra equity like future money in the bank?
I am looking to buy a house in a particular community in FL and have the choice of a houses from $350K to $550K. The $550K houses are quite larger with lake views and more land. My current house should sell for 450-500.
Putting an extra $200K into real-estate at the start of a probable ER scares me.
My question is: should I consider the extra $200K to be like money in the bank? If I need it back, can I just downsize later, and enjoy the better house for the next 10-15 years?
I am aware of the costs due to higher taxes and the future closing costs. That is no issue.
These houses are in a community with an HOA. The values seem pretty rock solid and I'd be downsizing in the same community.
So - is the extra equity like future money in the bank?