Today’s Question is about Real Estate:
“Should we sell our home?”
One of my readers sent me the following:
“We have enough equity in our house that if we sold it, we’d be almost completely out of debt. We’ve got 2 kids in college and 2 at home still, which makes downsizing a little tricky at this point. We’d probably have to rent an apartment for a year to save up for another down payment on a different home. Or buy a condo, and those can be difficult to sell.
We want the kids to have a place to stay when they come home for the summer, and if we were in a 3 bedroom apt or condo that wouldn’t be ideal. And yet, I REALLY want financial freedom. I REALLY want this burden GONE FOREVER.
My business has been struggling for years, and is actually the reason why we’re in this situation—I invested in marketing and trainings that didn’t convert, and got scammed by a business partner. Lots of adventures!
But I hear you loud and clear about being reactionary at this point. Any money the business brings in goes right to debt. I haven’t paid myself in close to a year. That sucks all the fun out of business! 🙂
Anyway, the question is: do we sell the home in the spring and rent for a while? What would you do?
..Thank you so much, Leslie! You’re one of the last people out there I actually trust. – A. C.
Here’s my reply:
That’s a tough question. I’d probably be tempted too, but we spent 6 years renting after the recession and I never realized how much of my mental energy was spent wondering, “Where are we going to be next year? Will the rent go up? Are we going to pay the higher rent or are we going to move again? What about the kids’ school—what if we have to move too far? How are we going to save for a down payment fast enough to keep up with rising home prices?”
It was on my mind constantly. We ultimately bought another home and the difference it made in my ability to THINK, create, and serve again was HUGE.
That being said, who knows if the home prices are going to tank again in the near future, and getting the equity now might be super beneficial? It would be amazing to pay off the debts faster, and buy a home when they’re cheaper. Indeed, it could go really well in that regard, but it’s a BIG gamble. If you stay where you are and can get in front of things any other way, don’t take it for granted that you already have a home of your own. It’s a huge-er deal than you know.
I strongly recommend that you do a search in Dave Ramsey’s archives for “should I sell my home to pay off debt” and see what advice he offers in different scenarios. Additionally, here’s one article on the topic. Find the principle that applies to your situation from which to make your decision, then you can be at peace no matter which way the market goes.
Thank you! I adore you! I appreciate your honesty so much. And when I get quiet in my mind, I realize that some of this feeling is impatience, which is NOT a principle of abundance! I’ll do a search on Dave Ramsey—that’s a great idea. Thank you again!
To learn more about developing the right mindset for achieving your goals, visit www.ProspertheFamily.com