First off: Why? With 2 babies our ~2000sqft house if feeling tight. I personally don't want to move but the idea is being romanticized by my wife who envies other people who have upgraded their homes.
Now the background..
My wife and I purchased our home ~4 years ago for $305K. At the time, we were childless with a combined income of $140K. Since then, our combined income has gone up to ~$210K but we also have twins and the added expenses that come with it ($2K a month for a nanny--Denver is crazy right now).
As a result of the housing market, we may be looking at a 100-125 in equity should we sell our house right now. Our current financial goals are currently:
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Establish emergency fund (19K in 1.5 years)
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Pay off car loan (bought a van) (2 years)
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Save enough money for the inevitable next car. (1 year)
I'm mainly using my companies ESPP as a vehicle for saving---once we reach these goals I'll bump up my 401k to max out the 15k annual contribution (currently contributing 4.5% as the company matches 100%...which is pretty damn near the 15K).
I also have a spreadsheet that I built to answer the "when can we buy a new house" question. It takes the amortization calendar and compares various selling prices for our home. My hope was that we'd be able to get rid of all our debt (home loan excluded) and gain 20% equity in our current home before looking to upgrade. So for example...It will be 4 years until we have 130K in equity that would be required to purchase a $650K house.
My fear is that I'm being too much of a hardass. Is it stupid to stick to hardset goals if the market is in our favor? The main justification I have for NOT moving is that while our home value has gone up significantly...so is that house we'd be looking at (500-600K for the size we'd want, likely).
Submitted September 03, 2017 at 02:44AM by smellypants http://ift.tt/2vVF8xN
