New job and moving next year

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Aku09
Posts: 64
Joined: Wed Jan 09, 2019 11:29 am

New job and moving next year

Post by Aku09 »

So I have been offered a new job to start next year either in the summer or fall of next year. It is a job back in my hometown that requires me to move out of my current state and sell my home. I’d like some advice on how to best proceed from here.

The move is not really a financial move as the pay is similar to what I make now, but has a much better family centered lifestyle as I have 3 small children.

Currently have a mortgage of 285k and after selling would probably break even after realtor fees. Also have student loans with 51k left. My questions is what should I do to best financially prepare for this move?

I should have enough saved to pay my student loans off by the end of the year which would leave me cash poor, but I would be able to save much more quickly with those being gone as I pay $3500 a month currently (minimum is $1100 on a 5 year variable currently at 0.18%).

The other option would be to pay the minimum on my student loans and hoard cash for a down payment for next year on the new home I will have to buy.

I personally think I would have better peace of mind paying the student loans off even with virtually no loan interest being charged currently. Sound reasonable?
snowox
Posts: 414
Joined: Wed Nov 08, 2017 9:17 am

Re: New job and moving next year

Post by snowox »

Thats a big spread for starting a new job when you say maybe summer to next fall?

Are they paying for your move? that can be expensive out of pocket.

When you say you have a mortgage of 285k and when you sell it you should be even after real estate fees 1) are you saying you have no equity? because you could use that for down payment on new home 2) how is the market by you? in most of the country you could probably list for sale by owner and save the realtor fees.

Dont allow yourself to be cash poor you need to allow yourself some flexibility for things that most likely come up.

Need a little more info I guess for me to at least understand
Topic Author
Aku09
Posts: 64
Joined: Wed Jan 09, 2019 11:29 am

Re: New job and moving next year

Post by Aku09 »

Current person is retiring in December but there is a high likelihood it will be in July.

They are not paying for my moving expenses (not standard in my line of work). My wife and I usually just rent the biggest uhaul and make a trip or two. Usually costs less than $500 total to move. It’s only an hour away although it is out of state.

Bought the house for 300k (mortgage was 309k as I used a VA loan and that was with the funding fee). Owe $285k after a little over 4 years. I’ve always done FSBO in the past, but if it doesn’t work out and I do list it I would break even as there hasn’t been much appreciation in my area.

Cash poor would only be at the end of the year after my student loans are paid off. With my student loans gone I’d be able to save at least 25k by moving time.
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gr7070
Posts: 1464
Joined: Fri Oct 28, 2011 10:39 am

Re: New job and moving next year

Post by gr7070 »

Just recognize that there is no guarantee you will be hired for this job. 9 to 12 months from now is an eternity from now. There are many, many things that can happen to you, the current employee, the future employer, etc that may change your current expectations.

Understand that and plan accordingly, protecting your interests throughout.

Edit to add: I'd probably pay the minimum on the student loans for the next 6 to 12 months and save the rest. An extra 12 to 25k could prove useful in a move or buying a new home etc. You'll have it there to throw at the student loan a year from now if it's not needed.
Olemiss540
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Joined: Fri Aug 18, 2017 8:46 pm

Re: New job and moving next year

Post by Olemiss540 »

I would pay the minimum on student loans and begin to cash hoard. Know you will have a plenty big nest egg to payoff the student loans immediately as soon as you are settled in the new place. With 3 kids, no reason to purposefully put yourself in a position to potentially be short on cash moving to a new place with 2 mortgages.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.
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