A complex financial decision, serious advice only please, What would you do?
Currently, we (wife, 2 children) live in a city that we love, the climate, the atmosphere, the people, etc.
I currently rent and am 1-2 years away from having enough money to either put a down payment on a home or purchase land and build a new home.
I own a house that needs remodeling in a different city which I do not enjoy (the opposite of where I live now).
In terms of finances, opting to live in a house I already own is the best decision, meaning a difference of many thousands of dollars saved by no longer renting besides the costs involved in purchasing a home in the future and the reduction of financial stress by having no mortgage or rent to pay every month. Ultimately, this situation could be leveraged to achieve financial freedom in a significantly shorter period of time.
Is it worth it? Would you exchange the environment you love in order to improve your current and future financial situation? If anyone has had a similar experience, please comment.
Selling the house in question would not make a significant enough difference in finances nor get me any closer to purchasing a different house.
Tagged with: atmosphere • climate • different city • enough money • financial freedom • financial situation • financial stress • mortgage • period of time • thousands of dollars
Filed under: Financial Freedom Resources
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Well, me myself I would prefer to live somewhere I like than dislike. If you and your family are happiest in a certain area than that is where I would live. I know that financial security is important and that would give peace of mind, but if you are miserable would it be worth it? However, instead of renting at present I would live in the house that I own. Save the money from rent so that you could have the money for a home or land in the city you prefer. Could you not rent the home that you own after you buy another home? That would help financially after you purchase another home or build. You do indeed have a difficult decision to make. Only suggestion I can make is for you and your spouse to set down, write down the pros and cons of living in another city and living in the city you love. Discuss it, and jointly make a decisison of what would be the best for you both and the children. Is the place you love a safer place for your children, which city offers better schools, cost of property taxes should be considered as well as the different cost of homeowners insurance. There are many things to consider. Like I said before financial security is great but not at the risk of being unhappy. My husband could have a better paying job, but the stress of the other job would be more than he can handle, plus the job is much more dangerous than the one he has now. He could possibly earn about 15,000.00 to 20,000.00 more per year, but he would be miserable and I would worry all the time about his well being. At first I thought he was crazy to opt for the job he does at present with less pay, but if you are unhappy it can make everybody around you miserable as well. I don’t think I have helped you much, but maybe I have gave you more things to think about when you make your final decision. Good luck….
Why can’t you simply sell the house, even if it needs some remodeling, and use the proceeds to buy a home in your new city?
Similar situation:
My husband and I were living in Miami. We both LOVE Miami, the sunshine, the weather (we didn’t even mind the hurricanes!), but we were renting a small one bedroom apartment and the rent kept going up year after year. We found out that our rent was going up another $80 at our renewal and we had to sit down and evaluate.
I am originally from the mid-west and neither of us was fond of the area, but we could afford to buy in the mid-west, there was no way we could afford to buy ANYTHING in Miami. We had to decide if we were going to continue to throw money away on rent year after year or relocate and own…
Unfortunatly finances are a huge part of the world we live in – everything revolves around the dollar and how it’s spent. Stress and fights result out of not having enough money. We were able to move, buying a home with 4 times the space of our little apartment and are paying out LESS every month in our mortgage than we were on our rent. We figure we can now afford to visit the city we love, and afford to enjoy it while we’re there. Meanwhile, we’re not stressed about our financial situation.
You really have to sit down and decide what’s best for you and your family. Good luck – you won’t be 100% happy either way, but you need to weigh out your pros and cons.
your doing 1 rite thing stay warm and better your self you can allways for back on the other house if you need to
Life is a series of compromises, eh?
I agree with Oh Boy. If everything is serendipitous where you are now, it makes no sense to throw that away. Instead, why not (a) remodel the house you own and sell it, or if that is inconvenient or not do-able, then (b) sell it as is for whatever the market will bear, and put the income away as part of a down payment on a house in the city you love.
Advice you didn’t ask for: I see a lot of families buying big status houses and saddling themselves with fat mortgage payments. Use common sense and buy or build the house that meets your needs. Stephen Pollan, author of "Die Broke" (a GREAT, very readable book of financial advice) says forget this idea of a starter home; buy or build the home you plan to spend the rest of your life in. You will be better off financially in the long run. Read the book to see why!
P.S. More money will not buy you happiness. You have the happiness where you are…you can deal with the finances.
This doesn’t sound like a financial decision to me. If you’re in a position where you could choose either alternative, you’re financially sound enough to where this decision becomes a question of happiness.
Which would make you happier, living in the city you love or achieving financial freedom in a shorter period of time?
Personally, I’d choose the city you love. It sounds like you’ll eventually see financial freedom on the horizon regardless of your choice, and I’d rather struggle in paradise than prosper in hell.
Life’s too short to live in a place that you don’t want to. My husband and I owned a house and it was an hour from work, and not in a great neighborhood… and we hated it.
We sold the house, and didn’t get as much as we wanted, but we were out of it, and moved into an apartment. Our lives have improved because we are living somewhere safe that we like better.
If you have no desire to stay in the house you own.. sell it, and move on.