I’m trying to think through logically if I should be more prepared to make a move in a bit of a rush if the market goes up or down.
We currently own two homes in Austin. One is paid off and worth ~$500k at present. That serves as an income property ATM. We live in the other home. That one is worth ~$410k and owe ~$300k with a 3% mortgage.
Our plan is to move out from the city and get an acre lot with a little larger home. We’d turn our current home into a second rental. Right now that would probably cost us around $650k in the area we’re looking.
My thought process is that we’re fairly insulated from real estate values right now and it’s no rush. If prices go up, we suddenly have way more equity we could leverage and likely more rental income. If prices go down, we have less equity to leverage, but also… we’d be spending less.
I’m just trying to think through scenarios and make sure I don’t miss some golden window if it happens.
In our situation, do you think the direction of home prices matters?
byu/strikecat18 inRealEstate
Posted by strikecat18
3 Comments
Both your properties and the target home would move in the same direction so you’re basically market neutral – the timing doesn’t really matter much unless there’s some weird local Austin vs suburban price divergence
Stay in your home and wait til rates tank
Your logic is strong. My only advice is to not be 100% invested in real estate. Hopefully you have other and more liquid wealth.
Good luck regardless of which way you go.