Home Buying in Cherry Hill>Question Details

fastik, Home Buyer in Cherry Hill, NJ

hi, we have 5 years till pay off our mortgage. we thought of buying new house to add one more bedroom. should we wait or buy now? thx

Asked by fastik, Cherry Hill, NJ Tue Sep 4, 2012

Help the community by answering this question:


1. Unless you WANT to move for a reason in addition to the need for another bedroom you should first get an estimate for an addition. (Why is it that you need another bedroom?)
2. When you compare costs don't forget to include the cost of a sale -mainly real estate commissions plus transfer tax.
3. I don't see that the length of time left to pay off your current mortgage really should affect your decision - What am I missing. Do you REALLY want to take on another mortgage when you have the opportunity to be mortgage free in 5 years?
4. You need to sit down and figure out what your goal are. What stage of life are you in? If you have been in the house for 25 years - do you like your neighbors? Are you ready to look for a retirement home? Or, are you a young couple with great income that started with a 10 year mortgage and have only been in the house for 5 years.

Figure out what the big picture is and think hard about it.

Good luck.
0 votes Thank Flag Link Sat Oct 20, 2012
Buy now! Sell later!! Great time to buy, bad time to sell.
You are in a great position to take advantage of this market and still make out on the other end when the market turns upward. Rent it out and have someone else pay off the last 5 yrs plus part of the new home!! http://www.twpvalues.com will give you an idea of what's selling in your area.
0 votes Thank Flag Link Sat Sep 8, 2012
A lot depends upon you. Is your current home the "perfect" place to be, it just needs another bedroom? If you add a bedroom, will it be the most expensive home on the block? (such homes are more difficult to sell and don't return as much value) or are there comparable homes with as many bedrooms? Is the community, schools, transportation network what you want? It's not just the house. Additionally, I notice that my colleagues are encouraging you to buy (and it is a good time to buy) and rent your current home. Do you have the funds for that? Would a new mortgage be totally funded by renting your current home? Are you prepared to legally and time-wise be a landlord? It's not so simple a decision. I'm wondering, even at impressively low interest rates, why you would want to take on a new mortgage unless you will be profiting from renting. Think it all through.
0 votes Thank Flag Link Wed Sep 5, 2012
Based on current mortgage rates being at historical lows and housing prices being at or near bottom, now is the best time to buy a home. Interest rates are currently at 3.75% which is a historically low rate. I would suggest that now is the best time to look at buying a new home.

Just as now is a great time to buy a home, it is a bad time to sell. I would suggest that you look into renting out your current home.
0 votes Thank Flag Link Wed Sep 5, 2012
First of all, I am surprised none of my colleagues said this, but I would highly recommend you consider not selling your current house. You only have 5 years until it's paid off, then you can rent it out and all that money (minus taxes, insurance and maintenance) is extra income. You can still buy now so long as you qualify. I am confident that in this Landlord's market, we can get your house rented quickly and for top dollar.

My colleagues were right though, you still want to consider buying now. Best time to buy in history. If you play your cards right, in 5 years, your rental income on Property A will pay some or most of any mortgage you may have on Property B.

If you would like to discuss these various options, please get in touch. I would be happy to bring examples of how I helped other people buy a second home while renting out their current one.

Eric Axelson, Associate Broker
Kurfiss Sotheby's International Realty
Web Reference: http://kurfiss.com
0 votes Thank Flag Link Wed Sep 5, 2012
Rates are low... Prices are low... You can buy more house today for less than it cost to add a room.

Your position, could more than likely, get enough for your home and buy larger for less and have no payments. OF course it depends where you intent to move to. But that should be weighed by the low rates and tax benefits.

Search foreclosures and short sale here: http://www.BuyNJShortSales.com
Search the MLS on your phone by Text: Phone Number 87778 ... subject line on your mobile phone- LSAR1 ... hit send... A GPS feature for listings at your finger tips
Larry Sarlo
RE/MAX Preferred
609-868-1171 call / text / email 7 days
0 votes Thank Flag Link Tue Sep 4, 2012
With interest rates incredibly low and prices just starting to come back there may never be a better opportunity to add space. There is good chance you could do it with a 15 year mortgage with little change to your current payment.
0 votes Thank Flag Link Tue Sep 4, 2012
The mortgage rates are still so low, now would be the perfect time to buy a larger home. I would be glad to help you find a larger home and can also assist you in preparing your current home to be listed. I specialize in Cherry Hill real estate and the surrounding areas.
Thank you
Dale Semler
856 816-1510
0 votes Thank Flag Link Tue Sep 4, 2012
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