My wife and I are about to buy a house in Austin TX in a very nice neighborhood with great schools(we don’t have kids) where median sale price of houses have gone up at about 5/6 percent every year for the last 3 years due to a small inventory and Zillow predicts the same trend for next year. The house price is around half a million dollars and we are going to put a down payment of 100000 and take a 30 year fixed rate mortgage at 3.5 percent APR. We both work and make around 300k annually together before tax . We want to move to a different city like Seattle within a year of buying the house as we have better career opportunities and opportunities to make significantly more money than we do at our current jobs , we plan to switch jobs every 3 years. I know I have to account for cost of living between the two cities but the pay outweighs the cost of living . I plan to stay in a rental property say in Seattle and put the house in Austin for rent . The rent in the area according to the estimate given by Zillow should cover mortgage , insurance and sales tax . The house is in a good condition but I m not too sure on how much I should account for maintenance which comes out of my pocket . There is a lot of talk about boom in the real estate market here in Austin so we do not want to miss out on buying a house here when we can afford it at a decent price . What I am unsure of is whether this is a good financial move or a convoluted mess . Thanks for reading if you have made it this far .
Submitted June 29, 2019 at 10:45PM by vsiravara https://ift.tt/2J9MUNi