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Seeking explanations of options for selling/buying property (lemmy.thewooskeys.com)
submitted 7 months ago by mike_wooskey@lemmy.thewooskeys.com to c/personalfinance@lemmy.ml
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I own a house/land outright (as much as a government will let you own anything): I have no mortgage or liens. For the sake of ease, let's use a nice round number and say that the house is worth $100,000.

I'm interesting in buying a different house/land in another area.

One option would be to use the equity I have in my current house towards the purchase of a second house. I'd end up with 2 houses.

Another option would be to sell my current house and then buy the new house. I'd end up with 1 house.

What are financial advantages and disadvantages of those options? Are there other options?

I appreciate your thoughts and insight.

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[-] lowspeedchase@lemmy.dbzer0.com 3 points 7 months ago* (last edited 7 months ago)

One option would be to use the equity I have in my current house towards the purchase of a second house.

Not exactly, you could use the land as a down payment to pay for construction of a new house on that land; However, to get money out of that land without selling it to buy a house somewhere else, you'd have to take a loan against that land and the bank financing your new mortgage won't like that at all and is not really an option. (This is USA-centric advice)

Edit: for context I went through this process (for my first place I don't own two places) and when you go to get your second home, the first question the bank will ask you is where the money came from for the down payment - if it's from a loan or a gift they will pretty much shut you down right there. A lot of this stems from the '08 crash.

this post was submitted on 05 Feb 2026
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