My husband and I bought our house for $425k in Austin, TX in mid-2022, which was probably the worst timing ever. We thought we’d be here for a few more years, but life had other plans. Now we’re moving to the NYC area to settle down and hope to buy there and start a family soon. Our realtor says our home value is down about 20% since we bought it, which means we’d lose our entire $85k down payment. Thankfully, that money came from selling a previous home that did really well during COVID, so it’s not like we lost a lot we saved up for. Still, it’s frustrating. If we sell at full price, we’d barely break even after mortgage payments and any concessions. We could also rent the house, but our mortgage is higher than local rental rates by $500-$600 a month. This amount is what we pay down in principal, so I guess I could think of it as paying ourselves back while renters cover interest and taxes. But, we have to think about maintenance and repairs too. We’re financially good and can handle the extra costs, but should we take the loss now or rent at a loss and hope the market gets better?
That sounds like a tough situation. Honestly, if you can afford the monthly loss while renting, it might be worth waiting to see if the market rebounds.
Sage said:
That sounds like a tough situation. Honestly, if you can afford the monthly loss while renting, it might be worth waiting to see if the market rebounds.
Yeah, but what if the repairs start piling up? That could add a lot to your costs.
Sage said:
That sounds like a tough situation. Honestly, if you can afford the monthly loss while renting, it might be worth waiting to see if the market rebounds.
IDK about being a landlord, but if you have a good property manager, maybe it could work out?
@Joss
What do you mean by good property manager? Like, what should I look for?
I feel you on the market timing. It’s frustrating. You think you could still get decent offers even with the loss?
Finley said:
I feel you on the market timing. It’s frustrating. You think you could still get decent offers even with the loss?
Maybe. But if you’re already at a loss, it might be best to cut your losses and move on.
Renting could be a good stopgap. Just make sure to budget for those unexpected repairs.
Uma said:
Renting could be a good stopgap. Just make sure to budget for those unexpected repairs.
Right? Like, what if the AC breaks in the summer? That would be a nightmare.
Honestly, if you’re financially comfortable, I’d lean towards renting for now. The market could come back.
Jonas said:
Honestly, if you’re financially comfortable, I’d lean towards renting for now. The market could come back.
But what if it doesn’t come back soon? That’s a gamble.
I think if you don’t mind the extra costs for a bit, renting might not be a bad idea. You could avoid a big loss now.
Val said:
I think if you don’t mind the extra costs for a bit, renting might not be a bad idea. You could avoid a big loss now.
That makes sense. Just keep an eye on the market trends, right?