Housing was hit fairly hard! with home prices down more that half in some locations (for example, Nevada)…
My friend with that won the $200,000 dollar house and things is moving. To help provide the best environment (including school system) for her future children, she (they) decided to upgrade to a more expensive, and much bigger house.
We estimate that she’s going to triple her current living space with the move. And since she lived in a townhouse before, her lot size has increased by an even larger amount.
I also mentioned the “Joneses” of our neighborhood has already moved to a bigger and better place. While they aren’t moving for the reasons as my friend is moving, they too are taking advantage of the reduces home prices (and at the time, the home buyers incentives) that are around. In their particular scenario, they are increasing the living space by 1,000 to 1,500 square feet.
If my wife and kids weren’t so happy with the house we live in, I too, would have jumped on the “buy a larger house while they are cheap” bandwagon. Of course, I’d upgrade our square footage by a much smaller amount. I estimate that I would only increase the amount by a range of 400 to 600 square feet. The important thing to realize is that this environment might be a once in the lifetime opportunity to buy a house at a reduced costs.
After all, if the house prices don’t start increasing, we have much more serious problems. Perhaps the logic is if we go are going down in flames, why not go down in flames with a bit of style?
Readers, what do you think? Is the housing market so depressed that now it a great time to buy? You have heard the stories of three people that are moving or would like to move (yeah that’s me).
-MR
Money Reasons – Your house is paid off, your family likes the house, why move?
Are you cramped in your current house? Or is it more that the opportunity of getting more house for just a little money is alluring?
Have you considered buying a home to use a rental property instead? Then you are taking advantage of the housing market, and creating some passive income too!
@everyday tips
To be honest, it’s the land that I would like more of. And if I were to get more land, I’d like just a little more square footage for each bedroom.
When I grew up, I had a small motorcycle and my neighbor had a go kart. Both were soooo much fun when I was growing up! I know my kids don’t realize what they are missing out on, but I do and I want the same for them if possible.
Shoot, I’d even settle for a piece of flat land large enough to build and play a decent game of half court basketball in the driveway. 🙂
I have considered rental property, especially lately now that I am debt free.
Until my kids realize what they are missing, or ask me for a bigger house, I’m going to keep quiet and keep socking away money! It’s just hard with the interest rates soooo low 😉
I think the current housing market is perfect IF you were going to buy a new house ANYWAY. Just taking advantage of a sale to take advantage of a sale is wasting money…taking advantage when you were going to buy anyway is just smart. 🙂
Our house is 1750 sq.ft., two stories, and has a tiny front and back yard. We’re okay with that now and look forward to paying it off in 6 1/2 more years, but in the future, we’re looking for a one-story with about 2200-2400 sq.ft so we can have a big open area for board gaming. We don’t actually like outdoor activities much, so yard size isn’t a big deal…plus the lawn guy is cheaper with a small yard. 🙂
Pingback: Tweets that mention Is It Time To Buy A New House? | Money Reasons -- Topsy.com
@Budgeting in the Fun Stuff
True… But I’ve been wanting to move ever since my son was 6. Now that he’s 10, I feel like the boat is passing my by.
Life will still be good though, just differently than I imagined it. 🙂
Our 2 story house is 2100, so it’s decent inside, it’s mainly the land that I miss… being a quasi-country boy and all…
I guess it’s hard to see your neighbours “move on up”, but it is you and your family who decides whats best =)
I understand the feeling wanting more land/ more space =)
I guess if you do move, your son will have 8 years to appreciate the bigger space (and perhaps as he becomes a teenager he will very much appreciate the bigger space).
I guess you have to ask yourself if taking on some more debt (now that you have successfully conquered that beast) is worth it for the extra space during those 8 years. =) Food for thought. =)
oops, sorry mean to say “it is you and your family” not it you and your” =) Just got back from work- brain not working.
@youngandthrifty
Nobody else wants to leave but me (although I’m slowly tearing them down with my badgering about it! Muahaha).
I’ll probably stay here for another 5 years… 🙁
Take heart, Don-man.
If I were you and really really really want to upgrade, I would get really good and cheap investment property (or rental property as you call it there – cheap is important to keep your risk low), save the income, sell when ready to move and use the proceed to upgrade.
Of course in reality, it is NEVER that simple.
If you think the memory of doing things on bigger land is worth paying extra dollars for, then go for it.
I’m not into big house, for me a house serves for basic sheltering purpose and investment.
@Bytta@151DaysOff
Very sounds advice (even if it’s not that simple :))
I’ve decided to hold off on buying, perhaps my memories are elevated as I grew older… Besides, my kids seem and claim that they are very happy now… Life is good!
i think you have to look at the specific neighborhood and ensure that your neighbors are all in a good place. you don’t want to move and then all your new neighbors decide to foreclose and you end up with the short end of the stick.
but if you can get a bigger house and sell your house for a profit then i say go for it why not.
@James
I’m in no hurry really, I was just thinking out loud as I was typing 🙂