Relocating - Shall I sell my house now or wait for its value to increase?


You are making an assumption that the house will appreciate in the short term, which there is no way you can know. You will probably take a bath financially selling a house after one year into a mortgage even if you sell it for what you paid for it.

If there is any chance you might relocate back it is definitely worth keeping it, otherwise I'd say cut your losses. The only upside might be if you could rent it out, keeping in mind that you generally need to rent for about double your mortgage payment to get positive cash flow. Letting it sit empty while you wait for it to appreciate is undoubtedly going to cost you big-time.


Usually, sell.

Every month -- arguably every day -- you own the house it is costing you money for mortgage and taxes and upkeep. Unless it is also producing income, or you are actually living in it, that is a serious problem. In any sane market, it is extremely unlikely that the house can gain enough value to offset that loss.

Renting it out, even if you lose money versus the costs, would at least slow the bleeding... But unless you actually want to deal with rental, or strongly expect to return very soon, selling rapidly for a good price is usually optimal.

Of course when setting the asking price, and negotiating offers, you are going to have to consider exactly this trade-off.


You are weighting a certain cost of the mortgage interest versus the possible gain of the value of the house.

Take the interest you pay per month and divide it by the current value of the house. Say your interest is 3% of the value of the house (may be more or less depending on the balance owed and the interest rate of your mortgage).

Say the average appreciation in your area is also 3%. But that means that there's only a 50% chance that the actual appreciation will be more than that (assuming the odds are equal either way), and there's a 50% change that you'll be worse off.

Generally, trading a risk-free loss for a risky gain of equal size is not a good investment; you generally can find better average returns on risky investments, so your best bet is to sell now and pay of the mortgage.