The move
"We can't afford it" can end a conversation for years. Sometimes it's true. Sometimes the gap is smaller than it feels, or it could close with a different property, a later date or one change to the budget. You can't tell which until it has a number.
A post in r/relationship_advice this week described a couple in their 60s where the wife wants to move to the coast and the husband's spreadsheet says they're $100,000–$200,000 short. Whoever you identify with in that story, the first step is the same: put both sets of numbers in one place.
Three levers to try in the calculator
- Price. Drop it by 10% and see what that does. Sometimes a smaller place in the right town beats the perfect place you can't afford.
- Time. Add a year or two. A gap that's impossible in 18 months can be manageable over four years.
- Savings. Is there money elsewhere that could go towards it? Only you can decide what's worth trading.
If one of you holds the household numbers, try filling this in together. Agreeing the inputs is often more useful than the result.
Questions people ask
Does it include mortgage borrowing on the new home?
No. It assumes you buy outright with sale proceeds and savings. If you'd borrow, the gap may be covered by a mortgage, which is a separate decision to discuss with a lender or adviser.
Are the default percentages accurate?
They're placeholders only. Real buying and selling costs vary widely by country, state and price. Replace them with local quotes.
Sources
Keep going
The dream job means selling the house
Compare moving costs with the pay rise and new housing costs, and find the break-even point.
What does an extra payment really save?
See how many months and how much interest an extra monthly payment would save.
Where should this month's pay go?
Split take-home pay into needs, wants and savings, and compare with real spending.
