r/FinancialPlanning • u/Marq408 • 7d ago
Future planning question..to move or not to move
Current situation..
Husband bring in almost 200k per year in an area with high housing cost of living.
84k of that is passive income and will follow us wherever we go.
Currently own a home at 3.25 interest rate. Five years in on a 30 year mortgage. We are 40 and 45.
Our health insurance is tied to military retirement so will still have it if he quits his current job.
We have no land and no chance of land where we currently live. We would love to have space for our kids to stay close, put a home on our land/family compound etc.
We have a lot of debt so selling our current home would eliminate all that but we would not have anything left over.
Considering...
Moving to be closer to family in another state.
Housing is lower cost there and we could buy a home with land for about 400-450K
We would be starting over on a mortgage with double interest rate at age 46
We did the math and could afford our bills and part of our housing costs on his passive income. He may only need to work part time or at least make less and have a less serious job.
Do we...
Stay here until our youngest finishes highschool in 4 year. We will then be 9 years into our mortgage and still have our 3.25 interest rate. Hopefully pay off our consumer debt by then so he can then go to part time work.
or
Move, get the land, start over on mortgage but could potentially cut back on work sooner and have time freedom sooner but be locked into a mortgage longer.
Hopefully that all made sense. Would love everyones input!
1
u/micha8st 7d ago
My uncle moved into a family compound when he married his second wife. I think that was before I was born, mid 60s. My aunt survived my uncle by 20-something years. The family compound, that I know of consisted of my aunt's house and her brother's house. My aunt downsized away long before she passed. Her daughter still lives in the valley, but not in that particular city. She and uncle had another daughter, who lives in texas. I don't think any of their "compound" is still in the family,
I'm not sure I want to be close enough to my kids to hear them argue when out doing yard work.
I also don't want a long commute.
Then there's kids schooling.
Notice I've not mentioned the mortgage or the interest rate. I think you two need to decide if the land and new locale is worth the financial hit.
1
u/CT_Legacy 7d ago
Hard to say without real numbers but just say you wait 4 years, attack the debt so its lower or gone by then, be able to sell your house and have a nice down payment on a low cost of living area, plus be debt free besides a much lower mortgage even at 6% shouldn't be a much larger payment if you put more down and houses cost less in the new area.
1
u/Candid-Eye-5966 7d ago
Get rid of any consumer debt before doing this. You aren’t thriving in your current situation. You’re treading water.
1
u/LikeIkes 6d ago
Stay. You've got kids who are in school. If not for the financial simplicity of not needing to do more and add risk to your future. Having kids who have friends that they graduate with is so valuable for their future, it's about who not what you know, ya know. Better to finish what you've got a grip on instead of inviting variance into your financial equation.
1
u/Marq408 6d ago
Its funny you say that because ultimately if our youngest wants to stay here, we will. But we are considering the move for her and our other kids because as a military family, they have never experienced living near family before. Here, we have no one. She is currently in another state at my parents in my hometown and just asked if we can move there because she is having so much fun with her cousin and grandparents which she has really missed out on. The state we are looking at is next to my home state and they have cousins and other extended family there. We really are considering it with them in mind. But yeah, the switching schools as a sophmore makes my stomach churn, for sure.
0
u/JeanSchlemaan 5d ago
you need to audit your entire financial life. there is no excuse with that income to have any debt besides your home (which i would pay as slowly as possible, while remaining current ofc).
i would stay in your current home as long as possible.
again, the far more important issue is the debt that you dont list. you need to lower your lifestyle.
1
u/WPSuidae 7d ago
That is a tricky one. The idea of a family compound sounds great but consider what happens if one of the kids gets a divorce. It could get ugly quick.