Hey Everyone,
Somewhere this weekend, someone will be bringing the folding chairs up from the basement and trying to remember how the extra leaf goes into the table. The kitchen will be crowded, assorted coats will be piled on a bed (light ones I hope) and we’re all going to do our best to stay away from politics.
Stay👏 Away👏 From👏 Politics👏 .
Housing, now that’s a conversation I approve of. Maybe the kids are hoping to buy. Maybe Mom and Dad are thinking about something smaller. Maybe, after a long drive to see each other, somebody says, “Wouldn’t it be nice if we lived a little closer?”
Those are good conversations to have. And if one comes up this weekend, there are three questions worth asking before everyone starts sending each other listings.
What are we actually trying to make easier? Seeing the grandkids more often, spending less every month and having less property to look after are all good reasons to consider a change. But they could lead to very different decisions. Find out what matters to everyone involved before assuming you’re all picturing the same thing.
You might be imagining a place with a suite for your parents. Your dad might be imagining a condo where nobody can ask him to shovel anything. Probably worth clearing that up.
When would we want this to happen? “Eventually” and “by next summer” call for different planning. If you already own, find your mortgage renewal date and put it beside that timeline. A possible move in a year or two is something to discuss before choosing your next mortgage term.
Breaking a closed mortgage early can come with a penalty that costs thousands of dollars. Ask your lender for an estimate if selling before your term ends is part of the idea. And if renewal is only a few months away, start comparing options now. You can do that before the renewal letter arrives.
What would we actually have left? If you’re selling, the difference between your home’s value and your mortgage balance isn’t all available to spend on the next place. Selling costs, legal fees, any mortgage penalty, moving expenses and the costs of buying again need to come out of the calculation.
For anyone buying their first home, the down payment isn’t the whole savings target either. There are closing costs to cover, and you’ll want some money left when you get the keys. Houses have a habit of needing something shortly after you’ve announced that you’re all settled.
Looking into an idea doesn’t commit you to doing it. You might discover a move is more realistic than you thought. You might decide to save a little longer, or that staying put makes the most sense. Any of those is a useful answer.
If a conversation this weekend leaves you wondering what’s possible, hit reply with one sentence: “We’re thinking about ___, sometime around ___.” I’ll help you work out which numbers we need and where to start. You don’t need to have a property picked out.
And thank you for reading, asking questions and trusting me with these conversations. I’m grateful to be part of them.
Happy Thanksgiving. Whether dinner is Sunday, Monday or whenever everyone’s shifts line up, I hope you get some time with your people.
And claim some leftovers before someone else finds some containers.
-Andrew
Find out what’s possible!
You can build a quick mortgage scenario online in under a minute–or just hit reply and I’ll run it for you.