I have previously mentioned that we are moving. The driving force behind this was to be closer to my in-laws and along the way reduce our monthly expense. It would also be nice if we could walk away with some extra money to invest. Below is a quick break down of where I see us being in a couple of months.
Old House Numbers:
Market Value $305,000 – $310,000.
1,400 sqft, 3bed/3bath, .8 acres
Current Mortgage: $193,548
Market Value $320,000
2,400 sqft, 4bed/2.5bath, 1.6 acres
Current mortgage on new house: $244,000
Paid $300,600 (includes: Brand new patio set, New smart TV in living room, riding mower, full dining room set (we didn’t have a dining room in the current house), 1 year warranty, all new appliances with the house. The sellers just had the entire kitchen done over and all new hardwood put in the house, along with the entire interior being painted. The house is 100% move in ready. This is different from my current house, where I had to do all of the upgrades.
Down payment: ~$60,000 – sold stuff around the house and the remainder came from investments
Bases on the numbers, I think we should be $95,000 -$100,000 positive when we sell the old house. This will allow us to recharge our investments by “paying” ourselves back the $60,000 we used for a down payment. Moving expense are estimated at $3,500. This includes a moving truck and a trip down with a vehicle. This leaves us with about $36,500 to….to what? So many things to do with the money, but we have already ear marked it for investments. We don’t plan to touch it.
How will this move impact our net worth? Bases on the above estimates, the result is an additional $36,500 to invest, but we will be adding added ~$50,000 to the mortgage. This leaves us with a (-) $13,952 to the net worth, add in the addition (+) $19,400 house value will give us a positive net worth of $5,448 when it is all said and done. I will take it, we are gaining in house, land and house value, moving to a town were house values have been on the increase the last 3+ years and will be close to my wife’s family.
When the old house sells and the above numbers hold true, we should be on track to meet our 2017 goal net worth goal. This move will also help us reduce overall monthly expense and get us closer to this year’s goal of $600,000 and put us in a nice position for the start of next year.