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Should we buy a home outright when we move?

I currently live in MA and my wife and I are planning on moving to Florida as soon as we can find jobs down there. I am a CPA and she has an MBA. So while jobs are hard to come by in every state I think eventually we will be able to find something. I bought a condo years ago in MA which we will be selling and through some inheritance, savings and proceeds from the sale of the condo in MA we could buy a home outright in Florida for $300K, still have over $100K in liquid assets (cash and CDs) and aprox $230K in our retirement funds. We are 34 and 32 years old respectively. I am very seriously considering buying a home outright when we move. We will still have plent of liquid assets as well as money in the market from our retirement funds. We have no kids currently, but paln on having 1, maybe 2 someday. What do others think about this plan?

Asked in Real Estate - 98 days ago

Tags: home purchase home mortgage 

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EricK
EricK
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I live in MA as well. When a coworker mover to Austin, I advised just that. "The 50% equity you have in your home now is enough to buy you a house outright in Austin. The new tax laws exempt $250K (single) so you have no tax due on the gain you have. Think how much more comfortable life will be with no mortgage payment at all." Advice was taken.

You have a unique situation. I am 47 and still have about 7 years to go on our mortgage. To be your age especially and mortgage free is more than wonderful.

Keep in mind, others may suggest you take the low interest mortgage and keep investing. Don't do it. You have 2 kids years from now, imagine how great the flexibility that one of you can stay home for years with no worries about money. Your plan is great, I wish you well.

Answered by JoeTaxpayer at Dec 12, 2009 09:42 AM

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JoeTaxpayer
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