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.
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.
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.
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
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.
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