I’m 40, make $80K/year, pay $2K/month in rent and took on a $1.2K/month mortgage on my parents' home — 2 hours away from my job. Should I continue to rent and own, or sell my childhood home?

The upside of selling your childhood home

If you're earning $80,000 a year, or $6,667 a month, but spending $3,200 between your mortgage and your rental, you're overspending on housing, considerably. As a general rule, it's best to keep housing costs to 30% or less of your income.

However, you're spending 48% of your income on housing, meaning a lot less is left over for leisure or savings.

The benefit of selling your childhood home is conceivably lowering your housing costs significantly — even if you then end up buying a home in your new city.

Depending on how much your childhood home sells for, it may be feasible to purchase a home in the city you work — even if prices start at $1 million.

If, for example, you pocket $400,000 in the course of selling your childhood home, you'd have a nice 20% down payment on a $1 million property, plus extra money as a cushion. And that could result in lower housing costs overall, since you wouldn’t be paying rent and a mortgage.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

The downside of selling your childhood home

It's natural to be attached to your childhood home. A 2024 Zillow survey found that 44% of Americans would buy their childhood home if cost were not an issue. Unfortunately, though, only half of U.S. adults say they could afford their childhood home at today's prices.

If you’re in a fortunate enough position to be able to keep your childhood home, you may be hesitant to give it up. After all, it can be hard to walk away from a home in which you have so many memories.

There’s also the loss of a major asset to think about. If you sell your childhood home, you can pocket the proceeds of the sale — but you’ll lose out on any additional price appreciation.

As well, there may come a point when you change jobs or go remote. If you sell your childhood home now, you may not be able to buy it back — or buy a comparable one later on in that same area.

Similarly, although retirement is likely quite a ways off, if you’re hoping to retire in your childhood town, that could be more difficult if you sell your childhood home. It’s hard to know what prices will look like in 20 years or more.

Of course, a big issue is also that your parents still live in the home. If they’re comfortable where they are, uprooting them could be hard.

But, it may be possible to sell that home, pocket some of the proceeds — helping to ease your financial strain — while also helping your parents find a new, more affordable place. Talking things through is the best way to help ensure everyone comes away feeling good in the event you do decide to sell.

The richest 1% use an advisor. Do you?

Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.

Try it now