We are moving to the US - Northern Virginia to be exact - in about 2 months (!) and are trying to get things in line before we come. Dh and I have been going round in circles on a few issues and we really need some objective thoughts and fresh ideas from an outside perspective on them...
1 - Sell or rent our apartment?
We own a small (500m2) apt about 1 1/2 kilometres from Paris. Not a super nice area but certainly not a bad neighborhood either - it's on a busy street but the bus stop is a few feet from our apartment building and pretty much everything you could need is in walking distance. We've redone all of the apartment - gutted the kitchen and bathroom, new floors, etc - so we've put a lot in it but it's loads better than when we got here.
If we rent - we'd have to completely refinance as we can't get enough rent to cover our mortgage (we'd end up paying 200-300 euros a month to keep it with our current loan). If we refinance, we'll lose our 3.5% interest rate and it will probably be about 4.8% - the current average right now - and we'll end up paying outrageous amounts just in interest payments. Property manager would look after things but we're still responsible for taxes, etc. We won't be bringing anything but our measly savings to the US to offer as a down payment when we do decide to buy a house. But we would have property here - an investment and added security if things go downhill (and who knows what will happen in this economy...).
If we sell - we won't be selling at much of a profit with the market the way it is right now but we would have an immediate (albeit small) wad of cash to put towards a down payment in the US. It could take a long time to sell in this market but maybe not - we have a friend that may be interested in it as investment property. Even if we sell right away, there is a three month waiting period after signing with a buyer - we have the option of stopping our mortgage payments during that time for a one-time fee (I think it's about 650 euros?). No more property but no hassles with renters, repairs, taxes, etc.
2 - Debt or down payment?
When we get to the US, we will be living with family until after baby is born (I'm due beginning of June) and we find somewhere else to live. We are hoping to save as much as possible during that time and use that money to put towards a down payment. But now I'm wondering if we should be using it to pay off my one credit card. There's a balance of about $8,000 and the interest rate is over 20%. (Old debt, I'm not using it anymore.)
Thoughts? TIA!
1 - Sell or rent our apartment?
We own a small (500m2) apt about 1 1/2 kilometres from Paris. Not a super nice area but certainly not a bad neighborhood either - it's on a busy street but the bus stop is a few feet from our apartment building and pretty much everything you could need is in walking distance. We've redone all of the apartment - gutted the kitchen and bathroom, new floors, etc - so we've put a lot in it but it's loads better than when we got here.
If we rent - we'd have to completely refinance as we can't get enough rent to cover our mortgage (we'd end up paying 200-300 euros a month to keep it with our current loan). If we refinance, we'll lose our 3.5% interest rate and it will probably be about 4.8% - the current average right now - and we'll end up paying outrageous amounts just in interest payments. Property manager would look after things but we're still responsible for taxes, etc. We won't be bringing anything but our measly savings to the US to offer as a down payment when we do decide to buy a house. But we would have property here - an investment and added security if things go downhill (and who knows what will happen in this economy...).
If we sell - we won't be selling at much of a profit with the market the way it is right now but we would have an immediate (albeit small) wad of cash to put towards a down payment in the US. It could take a long time to sell in this market but maybe not - we have a friend that may be interested in it as investment property. Even if we sell right away, there is a three month waiting period after signing with a buyer - we have the option of stopping our mortgage payments during that time for a one-time fee (I think it's about 650 euros?). No more property but no hassles with renters, repairs, taxes, etc.
2 - Debt or down payment?
When we get to the US, we will be living with family until after baby is born (I'm due beginning of June) and we find somewhere else to live. We are hoping to save as much as possible during that time and use that money to put towards a down payment. But now I'm wondering if we should be using it to pay off my one credit card. There's a balance of about $8,000 and the interest rate is over 20%. (Old debt, I'm not using it anymore.)
Thoughts? TIA!
