In our March net worth update, we indicated our net worth was $1,081,000.
I indicated that our home was estimated at a value of $1,250,000 and felt that may be slightly high.
Since that valuation, we listed our home for $1.35 million and sold for $1.6 million. Assuming closing costs of $75,000, we estimate we will net $1.525 million, $275,000 more than we’d estimated.
As a result, our net worth has increased to $1,356,000. A great increase in a short time, but it’s not all great.
Our goal in selling the townhouse was to purchase a building lot and build a single family home, our first ever. The purchase price of the lot and the cost of the home will be ~ $2.7 million, which will mean a mortgage far larger than we have ever carried. In building this, we will also be building a basement suite that we can rent out for ~ $2,000 per month, which will offset the mortgage payment.
While I’m excited to finally have an opportunity to own a single family home in a proximate area to where we have always wanted to live, I’m fearful of the costs, the debt, a potential housing bubble that could see the value of our home plummet when completed.
As we build, stay tuned for updates on budgets, valuations, market movements, etc.