Hello PF,
To preface, this is not happening in the US, but in Switzerland. I have put prices in USD to be more universal, using a CHF1 = USD1.1 as a conversion.
A couple of years ago I was fortunate enough to find a semi-detached house in Zurich, with a bit of land which needed some renovation work. Houses in this city are remarkably rare, even more so at a price I could afford at USD1m. I bought it with 70% mortgage at a preferential interest rate at the time of 0.45% for two years which expires shortly when I will have to choose how to renew. New interest rate at renewal would likely be in the 0.6% range.
The house was old, no kitchen, barely functional bathroom, but it was solid. I have spend around USD80-100k in renovations, making a new kitchen, bathroom, plumbing, and electrics as well as other aesthetic improvements.
Unfortunately it happens to be attached to less than considerate neighbours. I will not get into the details, but short of it is that if the situation cannot be resolved, it is too uncomfortable for us to continue living here. As a result, I am trying to decide what to do in this case.
As I see it I have two options if I have to move. Rent or Sell. I have had the valuation of the property done independently, and they are confident that if it were to sell in the current market I would be able to make a profit of around USD250k (before taxes/fees). Selling is a difficult pill to swallow as the house is extremely nice, and I will not be able to afford another similar place again due to their rarity and price. The neighbour situation will likely resolve itself in any case of the next decade.
Alternatively I can rent. The place would rent for USD2750-3250 a month + heating and electrcal bills. We work full time so would need to account for 10% fees of a rental agency - damages and other maintenance bills.
Land in this city is extremely valuable, and is pretty reliable to go up in value (last year has been rather more than usual though). So the question is to take the money and run, or wait out the situation and take a regular income which would be offset with renting somewhere else with the potential to move back if we want. I fear I may be too sentimental to make a clear judgement on this.
Sorry for the wall of text. Happy to answer any questions.
tl;dr: May have to move out due to circumstances with the neighbour. Do I rent, or sell. Given the market its a good time to sell, but the property type is rare to find in the city, and I won't get another similar opportunity.
Submitted May 19, 2021 at 06:07AM by Beautiful-Delay-5797 https://ift.tt/2S2aXpw
