Current situation: - Combined income with my husband is conservatively about $100k (~$150k normally but I'm only working part time as I stay home with my 18 month old son. I'm pregnant again so probably won't be back full time for a couple of years at least.)
- House value ~$950k, bought for $650k about 8 years ago.
- Current home loan $315k, payments of $1,650/m. So quite affordable.
- Business Loan $24k
- Investments $12k
- Cash savings $50k
- Combined retirement savings $100k
The issue:
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Our house is very small and old. It's already cramped with the 3 of us. We don't have a bath which is annoying with kids. There's really no where for them to play.
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My husband is completely set on living in this area and doesn't want to move to a cheaper suburb.
Options:
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Learn to live with the small/old house and enjoy our low home loan payment and relative financial freedom.
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Rent a bigger home and rent out our current home, which I think would cost us about $5k to $10k per year out of pocket.
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Tear down and rebuild on this land, which would probably mean borrowing an additional $300k - $350k. We would probably do this in 2-3 years when I go back to working full time.
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Sell this house and buy a bigger home. 4 bedroom homes in our area start at about $1.5m.
What would you do? I just want to hear other people's thoughts.
Thank you!
Submitted September 27, 2021 at 08:38AM by liljewegg https://ift.tt/3AL3FrP
