Wednesday, August 19, 2015

Should I sell my loft? Paid $225K in 2012, now it is worth $400K?


I want some advice on whether I should sell my place or not. I will try to provide all relevant details.

I bought a large loft near the end of the foreclosure wave in 2012. I paid a little over 200K. Now I think I could sell it for 400K. It had sold for just a hair off 400K during the crazy times of the real estate bubble. I have it on a 15 year loan at 3 percent. Mortgage plus escrow plus hoa runs me about $2,200 a month. Just HOA is around $350. Property taxes are maybe $3200.

I already have a rental house in another city that I rent for 1,275, payment being 700. Not sure if that is relevant.

Won't have to pay income taxes on any sell, been there over 2 years.

This place is really big and nice, for me to rent something comparable would cost $2500-$3500 a month probably.

Quality of life is nice except for noise transference from upstairs neighbor to my unit. Spending the money to remodel and sound proof the ceiling is another consideration.

My main thinking in doing this is just to have the security of that much money in the bank, and look for another mispriced property. I have experience renovating places. Also would have money for stock investing and other ventures that interest me.

I really don't have much attachment to physical things, my freedom from debt means a lot to me, but this place is definitely me.

Has anyone else ever been through something like this, and if you went through with it were you pleased after the fact?
Added (1). Should I sell my loft?

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