No way insane at all! A lot of people buy again. However, it also depends on your circumstances. Why are you thinking of buying again?...to downsize, to relocate, or just bc you want to? 59 is still young, so don't let age factor into it! lf you think it will make you happy, go for it. LIFE IS TOO SHORT not to be happy, & you still have many years left!
So let me get this straight. You're nearing retirement, your home is paid off, our economy is in the tank, the housing market is circling the drain, and there is no guarantee you'll receive your social security when you retire. Have I helped paint the picture in a different light? Yes it's an insane move! Or are you WANTING to join millions who have lost their homes to this poor economy?
You are nearing a point where most people want to downsize their home. If that's what you're think of doing, then it makes sense. If you're planning on buying a bigger home and taking on more long term debt at this stage of your life, then the answer would be "yes", you are insane.
Not insane at all depending upon your Taxable income and what you plan to do for living arrangements going forward. Rules on Capital Gains Tax rules on the Sale of "Principal" residences are no longer a mere $150.000, nor tied into having to buy another home within a year. You can now take up to $250.000/filing single, $500.000/joint, if you qualify by having used the house as your principal residence for 2 out of the last 5 years. Neither is this a once in a lifetime rule anymore, as long as can meet the current pre-sale requirement of 2 out of 5 as "residence" , there is no limit to times can do this. So if you have a large amount of equity in your house and for whatever reason feel you would like to use that money for something else ; be it a new home, travel, investment, whatever... Its not crazy. Check out www. irs.gov/taxtopics/tc701.html. For details and forms, Also: taxes. about.com. For more info. Do take into account however where and how you want to live after sale of house, doing this and then taking on a large new mortgage at your age could put needless strain on your finances and retirement plans. 'Cont- comments'