Engagement Decisions. For engaged couples, planning a wedding date and location are the first decisions.
At some point during the engagement the couple starts discussions about where they are going to live after the wedding.
Two Properties? These days the couple often owns two properties and sometimes they are in the same city.
For people in the Triangle for example, the husband-to-be might own a home in Raleigh and the wife-to-be owns a house in Cary.
Questions to Consider Here are some basic questions that might help you decide which house to live in and whether to sell or rent out the other home:
1) Which home is most conveniently located?
The saying, “location, location, location” is still one of the most important factors in real estate. If one of the homes is in a great location for work and social activities, then that should be an indicator of where you should live.
2) Which home has the most potential appreciation over the next 2-3 years?
If you can either live in or rent out a home that is expected to appreciate over the next couple of years then it could be worth keeping the property.
3) Which home is larger or has the most storage?
If you are going to be combining households, then the size of the house and available storage are high priorities in your discussion. Moving into a smaller space is a series of compromises and might not be the best decision as you start your married life together.
4) Is either house in prime condition to rent or sell?
If you can sell or rent one of the properties easily without having to spend much money and it makes sense to sell or rent that property, then it would be better to save your money to pay off wedding costs and the honeymoon.
5) Can you afford to rent out either property and still qualify for a mortgage on a new home?
The mortgage rules currently state lenders will not count any rental income unless you have been renting the property for 2 years and have been claiming that income on your tax returns.
Therefore many people cannot qualify to buy another house without selling one or both of their current properties.
You can buy a house together if your combined incomes are high enough to qualify for the new payment plus the current house payment(s).
Professional Review. Having a professional real estate agent review current market conditions in your neighborhood and advise you on how much work you would need to do to get the home ready to rent or sell is the best starting point.
Based on that data you can discuss the pros and cons with your fiancee to make the right decision.
How About You? Have you had to make a decision about which house to sell when you got engaged?
Let me know if you have any questions and/or comments. You can contact me directly in my office at 919-818-5001 or Contact Amy Shair here.
Amy Shair, has been an Award-Winning RE/MAX United Agent for 20+ Years.
Amy’s passion of education for Sellers and best options for Buyers has made her a top tier Agent. Amy will “give it to you straight” with “no fluff”.
Amy’s clients appreciate her vast experience and straightforward insight working on their behalf. Contact Amy at 919-818-5001 or Contact Amy here.