I have received a pretty significant promotion that requires a relocation. The job is not in the most desirable area and the position comes with a soft promise to find me a position where I'm currently based or a similarly desirable location after a few years.
My wife and I own a 2500 sq ft, 4 br 2.5 bath in a MCOL area valued at appx 520k, with 220k on the mortgage @ 2.8%. The typical mortgage payment is about 1700/mo.
I am trying to decide what the best way to handle this relocation is. I should be selling my house or attempting to rent it out?
The things that are weighing on my mind:
We don't have 60-100k set aside for a down payment at this time, and we would probably be looking at a house value somewhere between 350k-500k in the new area.
We don't know for sure that we want to move back to our current area/house in a few years.
We don't really know how much we could expect to rent the house for
The company has a pretty generous relo policy that will cover closing costs on the sale of the house, but if I don't sell now I obviously won't be able to realize those savings
I have no idea where I should expect our existing house value to move over the next few years.
I would really appreciate any advice on how to best evaluate this decision, and can provide more information for the discussion if needed. Thank you, all.
Looking for advice on how to handle a 3-4 yr relocation
byu/NorwegianPearl inRealEstate
Posted by NorwegianPearl
3 Comments
Does your relo package have a buyout if the house doesn’t sell for an agreed upon price?
I’d lean towards selling, especially with that company covering closing costs – that’s basically free money you’re leaving on the table if you don’t use it
Renting sounds tempting with that 2.8% rate but being a long-distance landlord is a nightmare and you’re gonna need that equity for your next place anyway. Plus “soft promises” from companies have a habit of turning into “sorry, plans changed”
I would rent it out. It’s not as if you’ll be buying a house in a place you only are for 3/4 years