Article Score0

My dad sold our beautiful $ 450,000 home in Long Beach, and is buying a house in Riverside county with the equity he gets from selling our Long Beach home. He’s doing this so he will have to house payments, but I don’t think what he’s doing makes much sense. He has to drive an hour to work everyday, and he’s going to be spending more than twice the money he’s spending now in gas. The commute is ridiculous, and he’s making me switch schools 2 months before I graduate. Plus, if gas prices go back up to $ 5 a gallon, my dad will be spending about $ 600 a month on gas. On top of all this, he’s losing about $ 40,000 that he has to pay in fees (realtor, closing costs, etc.). I’m just wondering, does this whole thing really make much sense? I think my dad is starting to realize that he’s made a huge mistake by losing our beautiful home, but I just want other people’s opinions, thanks!

1 Thought on Does it make sense to sell your home in Long Beach and buy a house in riverside to get rid of your mortgage?
  1. Reply
    Max Hoopla
    July 25, 2011 at 9:25 pm

    Everything has a price. The Internal Revenue Service figures the cost of operating a car is 54.5 cents per mile. (that’s for gas, tires, insurance, depreciation and maintenance.) You don’t indicate how much extra driving is involved but City Hall to City Hall between the two cities is a hair over 61 miles meaning the real cost of a round trip to those is $ 67 per day which would compensate for $ 1,200 more in house payment figuring the value of his time at zero. Real Estate professionals in my part of Central California figure that the value of a house increases by about $ 5,000 for each mile closer it is to the bay area. There will be a similar factor where you are. There is a good reason for this.

    Leave a reply

    Register New Account
    Reset Password