A bigger house or stay put?

**GM97** · 08-01-2008, 02:07 PM

We’ve been looking for a bigger house for quite some time but not sure if this is the right time to purchase a home. We live in a 3-bedroom rowhouse with two girls (7 & 2) and my mother. Girls are sharing room and my mother is in the second bedroom and we occupy the master. We are paying $671 monthly (5.375% interest rate) on our 15-year mortgage, we have 10 years left. The house we are looking at is $210,000 with 4 bedrooms and bigger than what we have. My mother in law has a house in PA, fully paid and will eventually go to DH, she is not very healthy. She keeps saying that her house will go to us and we don’t have to worry about anything once she is gone. Here is the question - Is it stupid for us to buy a house just because we need a bigger one or wait and move in MIL’s house? I know this sounds horrible but I’m not a bad DIL, she loves me. DD7 is starting to invite friends for sleep over and I also want her to have her own room.

DH and I have combined income of roughly $120; no CC debts; car will be fully paid in February 2011 (0%). We saved $50,000 downpayment for a house, we have a separate EF.

Thanks!

**xtena** · 08-01-2008, 02:09 PM

do you mean 120K a year or 1200 a month?

**sixfreds** · 08-01-2008, 02:13 PM

My vote would be stay put for now.

Eileen

**GM97** · 08-01-2008, 02:14 PM

Originally Posted by xtena

do you mean 120K a year or 1200 a month?

120k a year.

**tammy8701** · 08-01-2008, 02:15 PM

dont take this wrong but could you not all move into mil house now and be able to enjoy it now instead of later

**GM97** · 08-01-2008, 02:51 PM

Originally Posted by tammy8701

dont take this wrong but could you not all move into mil house now and be able to enjoy it now instead of later

We live in MD, MIL lives in PA. If we move to PA now that means DH and I have to find a job right away plus I think my MIL would rather be alone with her 2 dogs.

**Greebo** · 08-01-2008, 03:02 PM

Originally Posted by GM97

We’ve been looking for a bigger house for quite some time but not sure if this is the right time to purchase a home.

In this market? Its a GREAT time to buy a home. They're ON SALE!!! SELLING, otoh...not the best.

We live in a 3-bedroom rowhouse with two girls (7 & 2) and my mother. Girls are sharing room and my mother is in the second bedroom and we occupy the master. We are paying $671 monthly (5.375% interest rate) on our 15-year mortgage, we have 10 years left. The house we are looking at is $210,000 with 4 bedrooms and bigger than what we have. My mother in law has a house in PA, fully paid and will eventually go to DH, she is not very healthy.

I gather you are not in PA? Does DH want to work in PA? Do you want to live in PA? If not, what does MIL's house in another state have to do with your current life?

She keeps saying that her house will go to us and we don’t have to worry about anything once she is gone.

And she'll live to 105 if you wait on her house, probably...Murphy is watching.

Here is the question - Is it stupid for us to buy a house just because we need a bigger one or wait and move in MIL’s house? I know this sounds horrible but I’m not a bad DIL, she loves me. DD7 is starting to invite friends for sleep over and I also want her to have her own room.

DH and I have combined income of roughly $120; no CC debts; car will be fully paid in February 2011 (0%). We saved $50,000 downpayment for a house, we have a separate EF.

50k on top of the equity in your townhome? DAYUM thats awesome. That'd put your mortgage at what, no more than 160k, which on a 15 yr mortgage would be about 1,600 a month? No problem with your income - at or about 25% no problem.

Me, I'd be shopping. I'd also be making a low ball offer on the house you want. How long has it been on the market?

I think right now your bigger problem will be selling the townhome. I would not be trying to make a huge profit out of it in this market. I'd list it for 10% under its value to get a buyer as quick as possible, and then go put in bids on houses you like. You won't have a problem finding something to buy in this market, and you can find a lot of motivated sellers.

**Greebo** · 08-01-2008, 03:02 PM

What part of Maryland?

**GM97** · 08-01-2008, 03:16 PM

DH and I are open to moving in PA with good school, OH YEAH! My MIL has health issues. Our concern is once we purchased a house the house value will deteriorate which means we will be losing money. It took us several years to save the downpayment so we don't want it get wasted. You're right, what if we find the right house and everything no one will be buying my house or else it will sit in the market for quite sometime which means we will have 2 mortgages.

We live in Baltimore, MD by the way.

**Wendy99** · 08-01-2008, 03:19 PM

here in canada you could still make an offer on a new house and have it conditional on the fact that you sell your current home .. can't you do that?

**GM97** · 08-01-2008, 03:25 PM

Originally Posted by Wendy99

here in canada you could still make an offer on a new house and have it conditional on the fact that you sell your current home .. can't you do that?

I heard about that but I have a feeling that our house will be on the market - there are 9 houses currently for sale in my neighborhood. Those houses were flipped which means newer this and that.

**JennaC** · 08-01-2008, 03:40 PM

I was born and raised in Baltimore. When my oldest was four we moved to PA because the school system was horrible where we were. We got out right in the midst of the housing boom so we got good money for our house, and we only had it two years, but we also payed top dollar for our current house, which has probably depreciated. With that being said I wouldn't change anything, living in the country is so much better than the city. I still work in Baltimore, and hour commute each day but I love my job and didn't want to quit, so that's always an option.

**Greebo** · 08-01-2008, 03:43 PM

Originally Posted by GM97

DH and I are open to moving in PA with good school, OH YEAH! My MIL has health issues. Our concern is once we purchased a house the house value will deteriorate which means we will be losing money. It took us several years to save the downpayment so we don't want it get wasted. You're right, what if we find the right house and everything no one will be buying my house or else it will sit in the market for quite sometime which means we will have 2 mortgages.

We live in Baltimore, MD by the way.

If you plan to live in the house for a long, long time, why do you care if it goes down in value for a couple years?

You're trying to "time" the real estate market. Timing real estate for a personal residence you're looking at as a permanent home is counter productive.

Find the house you love and buy it and live in it forever!

**Greebo** · 08-01-2008, 03:45 PM

Originally Posted by Wendy99

here in canada you could still make an offer on a new house and have it conditional on the fact that you sell your current home .. can't you do that?

You can, but in a slow market, you don't want to do contingencies like this.

I'd almost suggest sell townhome first, then move out and rent, then buy and move again, but 2 moves for a family of 5 including mom? YUCK!

**GM97** · 08-01-2008, 03:51 PM

Originally Posted by Greebo

If you plan to live in the house for a long, long time, why do you care if it goes down in value for a couple years?

You're trying to "time" the real estate market. Timing real estate for a personal residence you're looking at as a permanent home is counter productive.

Find the house you love and buy it and live in it forever!

We will eventually move in the MIL's house but not sure when. As I've said the main reason why we are looking for a house is because we need a bigger one. If we buy now and move in just a few years 5 years, there is a big chance that we will be losing money, correct me if I am wrong. With that said, I guess saving more and waiting a couple more years will not hurt us.