Quote:
Originally Posted by PoorLurker
Bad thing about moving up is the increased cost of property taxes. Even if you carry equity from one home to another, you are still faced with a large increase in property taxes.
A friend I know just had a house in his neighborhood close escrow that increased his networth by a couple hundred thousand practically overnight. If my friend sold his house to "cash out" took that equity and applied it to a new house, he'd basically be paying 1% of that $200k per year in taxes. So he just added nearly $200/mo to his debt for...the....rest...of...his....life (or until he sold)
Yes- the $200k nicer house may appreciate more but there are always many variables to look at
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Tell me about it!
The reason we didn't move 6 years ago was because property tax, we ended up doing an addition, a pool, and outdoor kitchen, but now she wants to move.
She really wants to get out of the Bay Area, but my work is in the Bay.
If (when) a move happens we will either sell the house an spend an additional million or so and stay local, or sell the house and buy something for a similar price out of the area (WAY more house) and a condo locally for me to crash in 3 days a week.