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Post by Deleted on May 22, 2023 14:46:01 GMT
Daughter 55 yo with $500K home equity. Recently single with way more house than she needs. Intends to work until 70 yo. Would you sell and invest the mortgage payment, $1.8k/mo, in the market now or stay in the home and realize value increase at 70 yo? Basically, which is the better investment? She expects to find scaled down home for sale proceeds plus a little from mom and dad. My feeling is that a 3000 sq ft home value will decline with smaller family projections, thus the market is more attractive.
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Post by yakers on May 22, 2023 15:15:14 GMT
The financial aspect can be figured from various assumptions but an important question to consider is whether daughter wants to/can be a good landlord? I sold our house & moved to a condo with my wife when retired. Could have kept the old house and rented and absolutely it would have paid better but managing property is not what I want in retirement. You daughter is, of course, not retired, but managing property is a skill one must have and want.
I'll let the RE guys do the financial considerations for you.
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Post by Deleted on May 22, 2023 15:32:27 GMT
No Land Lord duties in her future.
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Post by FD1000 on May 22, 2023 20:15:55 GMT
Daughter 55 yo with $500K home equity. Recently single with way more house than she needs. Intends to work until 70 yo. Would you sell and invest the mortgage payment, $1.8k/mo, in the market now or stay in the home and realize value increase at 70 yo? Basically, which is the better investment? She expects to find scaled down home for sale proceeds plus a little from mom and dad. My feeling is that a 3000 sq ft home value will decline with smaller family projections, thus the market is more attractive. I'm not clear. IMO, sell the home now is the better choice and get $500K. --If you buy a smaller house for $500K(don't spend more money than that), then no rent and you have $1800 to invest --If you invest the $500K. You have to pay rent instead of the $1800 monthly. Is the rent higher than $1800=mortgage --There is a third option in the middle. Sell the bigger home, buy a small home which I don't know what city it is, let's assume $500K, but put down half and finance half. Basically, you can invest $250K + the mortgage is less than half, which means you invest the rest too + expenses are down for the smaller house. Unless someone is very good with money and other stuff, compromise is a pretty good option(the last one). |
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Post by yakers on May 22, 2023 23:50:27 GMT
No Land Lord duties in her future. Sorry, misread the proposition. Yes, investing and a smaller house are logically a better proposition. |
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Post by Chahta on May 23, 2023 0:25:42 GMT
Daughter 55 yo with $500K home equity. Recently single with way more house than she needs. Intends to work until 70 yo. Would you sell and invest the mortgage payment, $1.8k/mo, in the market now or stay in the home and realize value increase at 70 yo? Basically, which is the better investment? She expects to find scaled down home for sale proceeds plus a little from mom and dad. My feeling is that a 3000 sq ft home value will decline with smaller family projections, thus the market is more attractive. Homes should be lifestyle choices. If she sells and invests the payment where is she going for free that she likes? |
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