It’s time to make a housing move when:
1) You are currently renting but the cost of owning is roughly equivalent to the rent you pay.
This happens when the real estate market goes through gyrations and the balance between owning and renting changes. The Litchfield marketplace is no exception. The cost of buying a house has dropped considerably while the price of renting has risen just as dramatically.
With as little as 10% down, in many cases the cost of owning a home is equal to or less than the monthly rent a tenant would pay for a comparable rental, especially when the tax deductions Uncle Sam allows are taken advantage of.
Paying off your landlord’s mortgage can become tiring. When that happens, it’s time to start looking for your own condo or single-family home.
2) Your house is too small.
You’ve outgrown your current home and now it’s way too small after that second or third child or because an elderly parent has moved in. If you’re in a home that’s too small for your immediate (and future) needs, this is the time to consider the jump to something larger.
3) Your house is too big.
Have you recently joined the Empty Nester Club? Maybe your youngest child has headed off to college, and you’ve realized it’s time to pack up that extra bedroom and ditch all that square footage. Selling now and downsizing has many perks — lower operating costs and less cleaning and maintenance, to name a few — so go for it, and take advantage of a move that enhances your new lifestyle.
Many Empty Nesters discover they can sell their too large home and buy a smaller place in their home community AND a vacation property elsewhere, usually in warmer weather.
And while the house you sell may not bring the price it would have awhile back, the new smaller home you purchase will cost less as well.
4) Your financial situation has changed. You find yourself being able to afford more, or less, than the current home you are in.
Don’t try to “time the market” in order to buy low or sell high. Mortgage rates and home values are difficult to predict. Your number one objective should be to occupy the home you are most comfortable paying for at the present time.
If you can afford a larger home now and feel you could fill the space, go ahead and make it happen.
If the cost of keeping your current home is strangling you and preventing you from enjoying other aspects of life, consider selling and purchasing something that falls into a comfortable price range. Releasing yourself from the financial struggle is one of the smartest things you can do for your health and peace of mind.
COMING NEXT: “6 Times when NOT to Buy a House”