Likely to Move 1,000+ Miles Away. Rent Until Housing Market Cools Off?

Hello, friends.

Welp, it looks like I'll have a pick of new locations to reset my life. I'm thrilled and even my youngest is as well. I may even land in a state with legalized sports betting... still to be determined.

A question -- I'll walk with about $170k-190k in housing equity when we leave here.

The "target houses" in these prospective new cities are going for 350-400k right now. Looking through property records, they were probably valued at 240-300 just a couple years ago.

What would you do?

Sit on the equity and rent for a year or 18 months and see if the markets cool off? Or jump back in and go "house to house"?

One variable. Daughter will be in college in about 18 months and I'll probably just downsize to a smaller place anyway. Perhaps I just answered by own question.

Thanks. I'll hang up and listen.

 

Sit on the equity, but there is one caveat. Rent prices in a lot of places have escalated asking with soaring real estate prices. So it doesn't make a whole lot of sense to spend your equity on rent that you'll never recoup. But if you can find an affordable rental and you're not dipping into your equity, I think the real estate prices will ease although I don't think there's going to be a true bubble pop this time. Then again if you find a place you love and you want to stay in it, buy it.

 

Buy the smaller house now and downsize your life. Do you really need that lamp? Probably not. Get rid of everything you don’t use or need.

We have moved twice in the last six years and got rid of literal tons of stuff — and don’t miss any of it.

 

Outside of clothing, everything that I’m taking with me can fit in four boxes. Most of that is some basic kitchen appliances.

I plan to start OVER. New kitchen stuff. Towels. Bathroom stuff. I’m not moving couches, bed, mattresses. Any of that.

I will bring my 1980 Topps Baseball Set with me. Non-negotiable.

 

I won't be dipping into the equity as I'll be in an improved cash-flow each month. Daughter even floated the ideal of a high-rise condo rental for a year before finding a place. That might be kinda cool.

I worked my a$$ off for 25+ years, hacking it out. Perhaps, in some ways... I've finally made it. It = the first move where I won't be broke for a year after I move.

 

Gwen and I have moved cross-country four times, twice with everything I owned inside the car, once with less than $1,000 in our pockets.

It truly is all about location. If you can figure out how to narrow that down, the size and price will usually come into focus.

Sounds like you're doing your homework. I'd even suggest cold calling or e-mailing two or more reputable agents in the areas that interest you most. They may even have a rental specialist on staff who can give you an overview of that market, too.

They're on the ground there every day, so don't be afraid to pick their brains about where they think the local market values are heading and what neighborhoods would be the best fit for whatever recreation/restaurants/shopping/medical you and daughter might need close by.

That last one may sound stupid, but we live 45 minutes away from the nearest Class 1 trauma center and 95 percent of our physicians, and we're not going any younger. It's a pain to use up the time and the gas just to sit in a waiting room with a bunch of geezers, but we knew that when we bought up in the mountains. That's a trade-off we were willing to make.

Also, even though you won't have kids in school, put some consideration into it, just because the next owner may have that as their top priority.

Remember: The perfect house doesn't exist. At the same time, don't settle for something that makes you miserable just because of its resale value. Choose something that crosses off most of the boxes, and spend just as much time thinking about how easy or difficult it'll be to sell it in the future. If you have hesitations about odd quirks or the lack of storage/bathrooms/those high-voltage power lines hanging overhead, imagine the next prospective owner will thinking those same thoughts.

Good luck. Sounds like a great opportunity.

 

Oh, and love the Jim Nance opening, ex.

 

Rent in my burg has gone through the roof. I’m fortunate to be grandfathered into my place but they finally asked if I was OK with a nominal increase, which still has me well below what is the norm. All of a sudden, not enough housing and demand is very high.

 

Is the La-Z-Boy making the move?

 

If you're only planning on being in a place for a year and a half it would be better to rent even if the market wasn't so hot.

 

No... and that's a complex issue. The Laz-E-Boy stays here as "the girlfriend" is giving it a good home. She is staying behind with her kids -- they're a bit younger than mine -- largely as her ex-husband is also in town.

That was going to be a struggle but we agreed, once I figure out the future, that we'll be done.... for now.

 

So, which cities? Might help locals in those communities give you good advice.