Lots of good information here, Andrew, but here’s my takeaway: Sentimentality is SILLY! I see it all the time. Major decisions made on reasons such as “We went there”, “She has her heart set on it,” and so on. The couple you cited at the beginning will live to regret this foolish decision- perhaps they already do. Good luck to them - they’re gonna need it.
I think there's not enough information in that story, "We sold our house to send our daughter to the college we went to." What are the other financial assets in the family? If they own two or more houses, and they sold one of them, because they felt that was the most beneficial way to come up with $340K, that's one thing. Maybe they have $1M in the stock market, and felt their stocks are going up more than the value of their house. But if their $450K house was their main asset, and they cashed out their equity to pay for their daughter's expensive private college education . . . And now the parents are paying $2500 per month rent for an equivalent house, and they are say, in their late 40s in corporate jobs? . . . . . . . . . . . .
Lots of good information here, Andrew, but here’s my takeaway: Sentimentality is SILLY! I see it all the time. Major decisions made on reasons such as “We went there”, “She has her heart set on it,” and so on. The couple you cited at the beginning will live to regret this foolish decision- perhaps they already do. Good luck to them - they’re gonna need it.
I think there's not enough information in that story, "We sold our house to send our daughter to the college we went to." What are the other financial assets in the family? If they own two or more houses, and they sold one of them, because they felt that was the most beneficial way to come up with $340K, that's one thing. Maybe they have $1M in the stock market, and felt their stocks are going up more than the value of their house. But if their $450K house was their main asset, and they cashed out their equity to pay for their daughter's expensive private college education . . . And now the parents are paying $2500 per month rent for an equivalent house, and they are say, in their late 40s in corporate jobs? . . . . . . . . . . . .