I know the White Coat Investor advocates for the One House rule. However, there are times when it may be to your financial—or otherwise—benefit to move.
1) A house is a container in which memories are made. It’s okay to select a new vessel to create new memories in. See below for reasons why this might be needed.
2) You can limit yourself financially if you’re obsessed with staying in one particular “forever home.” I made the mistake of wanting a “forever” house when we lived in New York. One where we could have a family and grow old in. The banks and realtors got the last laugh on that one. Not even two years later, we sold that McMansion and moved out—and thank God we did! Leaving a HCOL (high cost of living) state with poor pay to move to a LCOL state with a much higher pay was the best financial decision we ever made!
If I had tied us to that one house, we would still have a negative net worth instead of where we are today.
3) Maybe you feel trapped by your current lifestyle, and you want to try on a new one. Like my amazing cousin who is moving into a Casita with her husband so they can explore RV life. I am in awe of this strong woman. She couldn’t be starting off on this new adventure if she was emotionally tied to one physical housing structure.
4) Maybe it’s time to right-size your housing. Could you FIRE (Financial Independence Retire Early) earlier if you had a smaller house that was cheaper—and easier—to maintain? Our NY house was huge and had the tax, utility, maintenance bills, etc. to go along with a two doctor McMansion. It was ridiculous folks! FI is easier to reach when your housing costs are only a tenth of your annual spending. Reading this book on housing has saved us untold money in ongoing housing costs. This book should be required reading for anyone who is thinking of buying, building, or renovating a house.
5) Untreated mental illness can not only destroy families but neighborhoods. Having a mentally ill family member who isn’t getting help is difficult. You know, that relative who intentionally sets your mom’s kitchen on fire at Christmas dinner, the cops are called, and your new fiancé questions his recent decision to marry into this crazy family? (You think your family has issues? Hold my beer!).
Untreated mental illness is tolerable in family when you have limited contact with them. Tolerating the drama that swirls around untreated mental illness is a whole lot less doable when you’re living next door it (true story from a friend who recently sold her house).
6) In the same vein: geographic distance creates healthier boundaries. If nearby family has issues they haven’t dealt with that have put the mental and/or physical health of your nuclear family in danger, then it’s time to leave that “forever house.”
7) Maybe you bought a house with bad mojo. I know, this makes me sound wonky, but after working in the hospice field, I’ve seen some weird stuff. Like downright strange, can’t-make-this-up. There’s some type of cosmic energy inhabiting certain places. Sometimes that vibe is kind and loving (like in a video a family of a dying man showed me of a flashing light zipping around his hospital bed) but sometimes that energy is…well…evil. Maybe bad things keep happening in a particular house. Before you buy a home, perhaps you should ask the neighbors if, over the years, awful stuff keeps happening to the families that own that structure.
8) Right-sizing has financial gains because you can put the money you save into investments with a higher rate of return. A house you live in (as opposed to you renting a home to others) is usually a poor return on your investment.
Take home point: Be willing to be brave and be flexible about how you think about housing. Sometimes it’s best to move on to a new phase in life if it’s in the best interest of your emotional, career, family, and financial growth. I believe in you, you got this!