Financial advice needed regarding selling/renting home (Full Version)

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klemency -> Financial advice needed regarding selling/renting home (7/2/2008 3:55:04 PM)

Hello, I'm looking into possibly moving and I need some advice regarding my home. My husband and I purchased our townhome a year ago and have been contemplating on whether we should move out of the state. The reason for wanting to move is that we are unhappy in our current state, mainly due to the extreme heat. I've lived here for 15 years and at one point felt very unhappy/angry/depressed about being here. When I first moved here I was intolerant to the sun (I broke out in hives when I went outside for about a year), and I've also had heat stroke, really horrible sinus/allergy problems, and an overall negative experience. My husband has been here for about 5 years and has grown to dislike the heat. At first I felt that I should try to bloom where God has planted me, however I continue to have a nagging negativity about my feelings toward this state that I know would go away if I could just live somewhere where the stressful heat doesn't exist. I've longed for so long to be in a greener environment, but I worry that I would be giving up instead of learning something that will strengthen my relationship with God. With the current market, our house value is below what we paid for it, we still would like to try and move though. We are considering either saving up the money for the difference of the loss of the home value, or renting it out. Obviously renting would contain a higher risk. Could you please provide any advice regarding this?



IonMoon -> RE: Financial advice needed regarding selling/renting home (7/2/2008 4:30:28 PM)

I'm not horribly knowledgeable about these matters... but renting for now might not be a bad idea, since the home value is likely to go up eventually... If you can afford to wait to sell. You might be able to find some great renters through friends, family, church. It would be important to have someone you trust in town to keep an eye on the place, take care of repairs, etc. Do you know someone who could do that?

Moving doesn't mean you are giving up. God doesn't require us to live in any certain place. Go where you are comfortable! BUT keep in mind that moving isn't going to necessarily make you happier or healthier!

Move to my city and you will likley grow to HATE winter. You will probably find where ever you move to, your allergies will adapt, finding some new pollen, mold, etc to react to.

Tara P



klemency -> RE: Financial advice needed regarding selling/renting home (7/2/2008 9:13:30 PM)

Thanks for the advice, I'll need to inquire around to find someone who could keep an eye on the place, we were thinking about hiring a property management company, but I'm not familar with the companies currently around.

I understand that moving may not make me happier, I think it would mainly put less stress on my body though, as I feel like the life is being sucked out of me everytime I go outside :). But, the important thing in the end is staying true to God and his path/plan for me because it is better than my own, this is what makes me happy, I will definitely pray about this! Thanks!



FreeEagle -> RE: Financial advice needed regarding selling/renting home (7/2/2008 10:08:57 PM)

A property management company that is recommended or listed in the phone book would be your best bet if you decide to rent. But get referrals and check the company out well, no matter who recommends it. Even if you put it up for sell it could be several years before the market comes back around. As for the state you move to you may consider taking a weeks vacation there in the summer and another week in the winter. My self I like the four seasons. I went to Florida for a week in the middle of winter once. While the weather was nice (hot), in reality I hated the heat. But as someone else mentioned there may be other elements you may not like.



klemency -> RE: Financial advice needed regarding selling/renting home (7/2/2008 10:54:58 PM)

My father in law recommended looking for a Christian Property Management company, but I'm unaware of any in Arizona. We are looking to move to WA, which is a place I have lived before and enjoyed the weather very much! It sounds very strange to say this, but the heat makes me depressed and sullen while overcast rainy days wake me up and I feel refreshed and energized (i notice I get this way on the few rainy days in AZ). I think everyone has their own environment that they flourish best in. Anyway, looks like I will be doing a lot more research in the mean time. Thanks for the advice! :D



relady -> RE: Financial advice needed regarding selling/renting home (7/3/2008 12:04:19 AM)

quote:

we were thinking about hiring a property management company, but I'm not familar with the companies currently around.
Most of the property management companies around here (St. Louis) take about 6% of your rents for their fees. It is difficult to be a long distance landlord.



BlueAdept -> RE: Financial advice needed regarding selling/renting home (7/3/2008 10:38:29 AM)

You could contact your bank to see if they would allow you to do a sale where whatever the house is sold for would satisfy the mortgage. It would mean taxible income for the year for the amount of the loan write off, but that would be at your tax rate. Some banks are willing to do that.

Something else you might not be aware, it is possible that your present mortgage has a clause in it that would prevent you from renting the house. Many mortgages are written that way, so if you attempted to rent the property you could find yourself being foreclosed.



relady -> RE: Financial advice needed regarding selling/renting home (7/3/2008 1:57:30 PM)

quote:

It would mean taxible income for the year for the amount of the loan write off, but that would be at your tax rate.
Actually, after january 2007, this is no longer true. the shortage from such a sale is no longer taxable as income. That was a loophole that many banks were exploiting and it was closed, thank God!

quote:

Something else you might not be aware, it is possible that your present mortgage has a clause in it that would prevent you from renting the house.
Good point. This is absolutely a possibility, especially if you've been in the home less than a year. Generally, those clauses have a sunset period on them, often it's a year. But you should definitely look at the note on your home to find out.



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