What are you thinking about?

[LeotheLion]

5 hours ago, minutemancl said:

Is it wrong to think of the equity you have and are building in your current home like a savings account towards the down payment on a future home? Wife and I have no intention of ever renting out properties, so we'd only ever sell our current home to purchase another. Current home value estimations less our remaining mortgage has us at a really nice number, which would go almost entirely towards the down payment of a future home. That's my mindset, but I'm wondering if it is not the right one to have. I bought my first house a few years ago, but I don't have any experience selling.

I think the one challenging thing for this is you'd have to purchase your home under the condition that your current home sells so you can meet your down payment. If it is a competitive environment, that offer wouldn't be as attractive as someone else that doesn't have that condition.

[TVScout]

 

[naptownskinsfan]

A really big sports discussion forum was just shut down.  This medium, while still my favorite, is really tough right now. 

[minutemancl]

15 hours ago, MWil23 said:

Not at all, but just understand some things you’ll absolutely get value in like a kitchen/bathroom renovation whereas you spend $10K on landscaping and you’ll recoup almost none of that unless it’s structural.

 

14 hours ago, ramssuperbowl99 said:

Most people do this because home equity of your personal residence is exempt from capital gains tax up to $500k married/$250k single.

Sweet, thanks guys. My wife and I have put on a new roof, brand new HVAC, new hot water heater, and added a patio to our house, but we are just about done. We plan on selling and moving in the next few years. I just wanted to know if that was the right mindset to have. 

14 hours ago, LeotheLion said:

I think the one challenging thing for this is you'd have to purchase your home under the condition that your current home sells so you can meet your down payment. If it is a competitive environment, that offer wouldn't be as attractive as someone else that doesn't have that condition.

I'm not well versed in this, but my wife talked to our realtor recently and he said if we wanted to move soon, there are ways around this. I forget what they were, and obviously someone else ultimately needs to buy your house, but you can buy a house using your equity in your current home as a down payment before it actually sells.

[MWil23]

21 minutes ago, minutemancl said:

 

Sweet, thanks guys. My wife and I have put on a new roof, brand new HVAC, new hot water heater, and added a patio to our house, but we are just about done. We plan on selling and moving in the next few years. I just wanted to know if that was the right mindset to have. 
 

Those are all good things to do. While a new roof won’t add value, it’s a nice selling point and needed fix, same with HVAC and water heaters. The new patio will increase home value resulting in a higher selling price.

21 minutes ago, minutemancl said:

I'm not well versed in this, but my wife talked to our realtor recently and he said if we wanted to move soon, there are ways around this. I forget what they were, and obviously someone else ultimately needs to buy your house, but you can buy a house using your equity in your current home as a down payment before it actually sells.

That’s typically called a contingency offer but @Forge is my resident real estate go to guy here.

As for the down payment, that’s taking out a HELOC on your house and using it. Once you sell, you pay off the HELOC, remaining mortgage, and then pocket what’s left.

[LeotheLion]

2 hours ago, minutemancl said:

I'm not well versed in this, but my wife talked to our realtor recently and he said if we wanted to move soon, there are ways around this. I forget what they were, and obviously someone else ultimately needs to buy your house, but you can buy a house using your equity in your current home as a down payment before it actually sells.

You can pull out the money on a HELOC but then you run the risk of paying 2 mortgages for a bit. And the HELOC rate will be 8%+. 

 

[skywindO2]

23 hours ago, minutemancl said:

Is it wrong to think of the equity you have and are building in your current home like a savings account towards the down payment on a future home? Wife and I have no intention of ever renting out properties, so we'd only ever sell our current home to purchase another. Current home value estimations less our remaining mortgage has us at a really nice number, which would go almost entirely towards the down payment of a future home. That's my mindset, but I'm wondering if it is not the right one to have. I bought my first house a few years ago, but I don't have any experience selling.

This is exactly what I just did. Sold my condo and used the equity for an actual house. 

Like someone else mentioned, there's a few complications with this. I had to find buyers first but in my sales contract I had a clause that I had time to get under contract for a purchase, needed buyers that could be a little flexible with the closing date. Closing on the sale had to happen first, both were the same day for me. Sold my condo and about an hour later, bought a house. 

[MWil23]

2 hours ago, LeotheLion said:

You can pull out the money on a HELOC but then you run the risk of paying 2 mortgages for a bit. And the HELOC rate will be 8%+. 

 

Correct, but if there’s an offer in place, that HELOC will barely even clear before the house is and HELOC is paid off and the down payment is submitted 

[Ty21]

So when did Taylor Swift go from the average country singer the weird girl in hs listened to to being a stadium selling out God

[ET80]

47 minutes ago, Ty21 said:

So when did Taylor Swift go from the average country singer the weird girl in hs listened to to being a stadium selling out God

[Malfatron]

1 hour ago, Ty21 said:

So when did Taylor Swift go from the average country singer the weird girl in hs listened to to being a stadium selling out God

Courtney Barnett is better

[TVScout]

 

[AkronsWitness]

On 7/28/2023 at 7:02 PM, Ty21 said:

So when did Taylor Swift go from the average country singer the weird girl in hs listened to to being a stadium selling out God

If you find the answer please let me know. My wife is a 'swifty' and I just cant wrap my mind around why or how Taylor Swift has gotten to the level of stardom she has. Does she make good music? Yes. Is it on some sort of Michael Jackson God level of culture changing? No.

I will never understand for the life of me how such a B+ level musician has reached the heights she has. 

Its like when people keep telling me Dionte Johnson is a really good WR. Like....huh?

[MWil23]

50 minutes ago, AkronsWitness said:

Is it on some sort of Michael Jackson God level of culture changing? No

Ah yes…The most transcendent pedophile of all time.

[LeotheLion]

On 7/28/2023 at 12:21 PM, MWil23 said:

Correct, but if there’s an offer in place, that HELOC will barely even clear before the house is and HELOC is paid off and the down payment is submitted 

Right, it just depends on your risk tolerance. It might work out very well if you can quickly sell your home.