[Cloverlove]

We are currently stressed about our debt (student loans, car, consumer<img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/redface.gif" style="border:0px solid;" title="Embarrassment"> ) and the thought of selling our house and renting for awhile feels very liberating. We were doing well until my health issues forced me to stop working. <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/greensad.gif" style="border:0px solid;" title="greensad"><br><br>
We have lived in this house for 3 years and can probably make 45-55K. We are considering moving overseas but not until fall/winter. However, this would be the best time to sell as far as the housing market goes.<br><br>
We LOVE our neighborhood and the house has been great, just feeling a little small.<br><br>
If we did sell and used the money to pay off debt, we would not have the $ for a down payment if we did decide to stay in this town. Dh is 38 and I am 34.<br><br>
So, is selling our house to be completely debt-free a good idea or short-sighted?<br><br>
Thanks!

 

[Mama~Love]

We're thinking of doing the same, but we would hopefully have enough for a down payment on a less expensive (and probably smaller) place. Every month is a struggle for us to make all the payments, it's almost miraculous that we do and if we moved, we could really simplfy things and make it work on just DH's income, and use mine while we have it for savings. We've really been living beyond our means for too long, and it's catching up with us.<br><br>
So I'm curious if this is a good idea as well. Wish I had some advice for you though <img alt="" class="inlineimg" src="/img/vbsmilies/smilies/hug2.gif" style="border:0px solid;" title="Hug2"> .

 

[Herausgeber]

Unless you've gotten a handle on how you got in all that consumer debt in the first place, it could be very short-sighted. How long would it take you to pay it off without tapping into your home equity?<br><br>
Would you save any money each month on your housing expenses if you sold? Especially since you plan on turning around and buying another house.

 

[Cloverlove]

I don't think we would buy right away. Like I said, we are considering moving overseas and would definitely rent.<br><br>
Fortunately, our consumer debt is a small fraction overall. It is high for us because we have always been able to pay off our credit cards. We owe about 5K on 2 credit cards. Partly due to me not working anymore and house-stuff.

 

[p.s]

agent, that they automatically get 6%

 

[Herausgeber]

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<div>Originally Posted by <strong>Cloverlove</strong> <a href="/community/forum/post/7991773"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">I don't think we would buy right away. Like I said, we are considering moving overseas and would definitely rent.<br><br>
Fortunately, our consumer debt is a small fraction overall. It is high for us because we have always been able to pay off our credit cards. We owe about 5K on 2 credit cards. Partly due to me not working anymore and house-stuff.</div>
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Gotcha. But do you know if in the short term (before you go overseas), you would pay more for housing by renting?

 

[velochic]

Could I be nosy here and ask about your plans to move overseas? We've moved twice back and forth (dh is not American, so it seems to be a little easier) and I've discovered all sorts of hidden costs to it. Just wondering where you are going, how you are going to stay (work visa), and how long. It could make a big difference in how I reply to your first question. <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/winky.gif" style="border:0px solid;" title="Wink">

 

[Cloverlove]

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<div>Originally Posted by <strong>velochic</strong> <a href="/community/forum/post/7992794"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Just wondering where you are going, how you are going to stay (work visa), and how long.</div>
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I wish I could answer this! Currently, we are thinking of Australia (Brisbane). Dh is very employable (10+ years in IT/Project Manager) and is looking into companies. I am fairly employable, but working on managing endometriosis before I jump back in. The plan is to stay a year or 2 (in Australia) and then we just don't know.<br><br>
I think the lack of a concrete plan is what is getting us. We moved to the midwest to be closer to family and it is just not working out for us. I love this town (Madison) 6 months out of the year, but I don't know if I can handle another Wisconsin winter. Also, real estate is super expensive and salaries don't seem commensurate (especially compared to what we were making on the west coast).<br><br>
I don't mind answering questions- it really helps me to process this stuff!

 

[Denvergirlie]

Could you not keep the house, find a way to pay of that little bit of debt and rent the house while you're overseas? This family that's in the midwest, can they pitch hit property management while you are gone?<br><br>
That way you can hold the house, which should continue to increase in value and have a place you can move back into when you return to the states? You can always sell later when you return and have a new place to settle into.<br><br>
That's more of an investment plan thou than a debt reduction.<br><br>
However, selling now and renting can be liberating and should reduce your monthly costs. You also wouldn't have to worry about the hassles of renting your house.<br><br>
Downsizing into a rental now would give you a good test run on reducing your stuff and let phase into a large move overseas.<br><br>
Good luck on whatever path you take

 

[velochic]

(My husband was in Brisbane about 8 years ago. He's a computer science professor and he said that they are making some really positive moves in the field of technology in that city.)<br><br>
I think that being debt free before you go is a really important goal. Especially the way the US Dollar has been going... you don't want to be earning Australian Dollars and paying debt in US Dollars.<br><br>
If you are going for two years, I think you have three viable options with the house. Selling, renting or loaning to housesitters. We used housesitters, but when we came home there were some issues. They did not take care of the house as we would have. However, it was a really young couple who had a lot of financial problems. We paid the mortgage and asked them to pay only the utilities (to us... we still did the actual payments because our credit is stellar and we didn't want it damaged). We thought it was a great deal for this young 22-ish couple, thought we could help them out financially (we paid for everything except utilities), but somehow they irresponsibly got themselves further into debt. In the process, there were some things that came up with the house and they felt that we would think that they "did it" and so they didn't tell us when we could have gotten it taken care of less expensively. We came back Dec. 24, 2004 and I just the other day got yet another call from a bill collector for them. That's the downside of having a housesitter. You might get an immature sitter that doesn't have much of a clue. They were sweet people, though, and did the best that they knew how to.<br><br>
The up side is that we were able to keep this old home we love so much and is built so well and is in such a good neighborhood (our best friends live next door). Our house feels a little small sometimes, too, but that is mostly because my mom lives with us. <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/winky.gif" style="border:0px solid;" title="Wink"> If you love your house and can get debt free without selling it, then it's probably worth it to find a way to keep it while you're gone. Rent it. Get a housesitter. It will be nice to come home to someplace that is familiar. And you may find that a couple years on the Gold Coast will make you long for snow again. <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/winky.gif" style="border:0px solid;" title="Wink"><br><br>
When we moved to Germany, we rented a fully furnished flat. There were still costs we never thought about. It is EXPENSIVE to move overseas. And the dollar sucked compared to the Euro while we were there. But the experiences of living abroad (I've lived in Moscow, Munich and Istanbul) are well worth the cost. I wouldn't let debt stop you from going, but I also wouldn't go into more debt to do it. If that means selling your house and you're sure you are going to move, then do it. Good luck!!