Today's Focus

Current Goals:

1) $1,000/mo. to short-term savings and $400/mo to investments.
2) Weigh less than 180 pounds by 12/31/21.
3) Read more books.

Previous Goal: Eliminate Mortgage on Rental Property
Interest Rate is 5.125%!

January 1, 2019: $59,592
August 11, 2020: PAID!


Search My Frugal Miser

Tuesday, January 12

We're Moving!

Big changes are ahead.  We've made the decision to move in March into one of my rental properties.  There are a few reasons for doing this, but the top reason is because our current home has high monthly costs that are outside our control.  Specifically, we have both an HOA ($200 every quarter) and a CDD (over $300 per month).  Additionally, the interest rate is a ridiculous 4.75% and I was turned down for a refinancing.  I'm still not sure how I justified this since we knew about these costs before I bought this house.  I think the excitement about building a brand new home got the best of me.

Advantages of Moving

There are several positive benefits to this move:
  • I paid cash for the rental property, so there won't be a mortgage.  
  • We will be 15 minutes from the Airbnb.  Based on 2020 trips, this will free up 135 hours of drive time and about $200 worth of gas, plus it will reduce wear and tear on the car.
  • We will be more physically active.  The rental is on a major bicycle trail that runs through the county and is an easy bike ride to the beach.  It's a more dense area which means we can run most of our errands without getting in the car. 
  • Instead of paying a mortgage, I'll be spending money on improving the home.  The area around the house has improved since I bought it and I think I can add value by updating it.  More to come...
  • Because it's a smaller house, the cost of utilities should go down.
  • Last, and maybe best:  once our current home sells, I will be completely debt-free!!!
Unless the real estate market crashes, I expect to sell the home we live in for a modest profit.  If I'm lucky, the increase in value will cover all our carrying costs for the 2+ years we've lived in this home.  

This won't be our forever home.  It's more of a house hacking opportunity - live in it while we make improvements that will raise its value.  Our "forever home" may not even be in the United States.  I still have a lot of thinking to do about that.

2 comments:

  1. The financial savings combined with the time savings make the move a smart decision. Being completely debt-free will be great for you as well, that will give you a lot of options when deciding what to do in the future.

    ReplyDelete
    Replies
    1. Thanks, Andy. The time savings alone justifies it. I'm crossing my fingers my current home will sell at a profit so that I can say I've lived for free for the last couple of years.

      Delete