You should clarify: is that a "new" house, as in just-built from scratch, or just "new-to-you"?DW and I are in our mid 30s with 2 kids. We have a SFH in VHCOL area. We have about 1 million in cash/low cost index funds and make about $500,000 per year.
We can’t decide whether to remodel our house or buy a new one. We have several hundred thousand dollars in equity and a 3% mortgage. Leaving that low mortgage rate would be painful. We are considering a $600,000 remodel to our home to make it the house we’d like to live in for the next 15-20 years. It’s basically a gut job on the house that we only bought for $700,000.
An alternative would be to move and buy a new house. If we did this we would probably move within our same neighborhood to be in a better area. The house would probably cost us $1,500,000 is so to get everything we want. But at a significantly higher mortgage rate.
What would be the Boglehead advice between these options? In terms of goals, DW and I have toyed with the FIRE movement idea, but realistically we will be working for the next 15-20 years and staying put. I got a late start in investing due to spending many years in school/training.
- D
Obviously the Boglehead approach is to put up with living in the house you have now without any changes.
Statistics: Posted by tibbitts — Mon Aug 12, 2024 3:47 pm — Replies 27 — Views 2578