Many times it seems on or around my birthday things happen. Born 3/4/50 you figure it out. That number 50 has always made it easy to cypher things out. Recently I found out the house I have lived in for 15 years is being sold. The landlord and I are friends. He would never sell it to me. 10 years ago in partnership bought 90 acres with three houses that will be paid off this April. We saved this old house after five years of weekend work and well over 100 trips 280 one way from here. The reality is no jobs in the area for me. The dilemma is the following.
There is no housing slump here and if it comes a second bedroom added for 5K will add 25K to the value of a 860 sq ft house that will sell for195K a few below market price in this area.
I can swing the payment but the 20% down would require a loan from my 401K and just about tap the credit union out.
If I were to rent something it would be close to the same amount as the payment about a K.
Nothing cheaper to buy and I like this place a lot. Have hardly ever carried debt.
Not many places to live and apartments are out. Don't like moving. Building is out in this market given the price range to work with. I would be able to find another place to live but my lifestyle would take a major hit.
I am of the belief that whether it's now or later and if not now sooner than later millions in this country will be forced to make major lifestyle changes because of economic conditions. The chickens are coming home to roost for sure. Feel very uneasy about carrying debt at this time and wish to know what others may think.
On a lighter note talked to the man with the fish at the top.(picture is gone) Caught twenty some last Friday. Says the picture doesn't do this fish justice. Some people would kill to catch a brown like that. I'm going next time. As the crow flies it's about 40 miles. This time of year about a 100 to get there. Graham told me he and friend made this movie in January skiing deep powder and trees above Fish Creek. Set to music I was impressed so there is no choice but to share it but I can't because I just found out it's been disabled. Just watched it this noon. He's has to put that back up or else I won't let him take me fishing.
He just sent it to me-I guess I'll still have to let him take me fishing.
You're asking a serious question, OneFly, so I have to give it some thought in order to provide a serious answer.
ReplyDeleteCan I think on this for a day or two? Sheesh, how soon does the sale occur?
Oh, yeah -- HAPPY BIRFDAY, you callow yoot.
Happy Birthday!
ReplyDeleteYou are almost exactly ten years more experienced than I am, Mine is 1-31-60.
As for yer dilemma, I am loathe to give anyone advice on this kind of thing, my choices have all turned to shit, my own fault of course.
If you are a first time buyer, they have mortgages that only require 3% down, something to look into. You might want to talk to a financial planner and figure out what yer assets are so you can go in knowing what you can afford. Some mortgages will add your home owners insurance and property taxes into your payment, something I did. it makes the monthly payment higher But saves the wicked twice yearly tax payment you would otherwise have to come up with.
Like I said, I don't really want to give you advice, those are just a couple of things to consider. One more thing, when buying a house be extremely aware of who you are dealing with and what kind of reputation they have.
There are a ton of "Used House Salesmen" out there, if you get my drift.
Best of luck man.
Happy Birthday and good luck fishin' too.
happy birthday!
ReplyDeletewhat busted said (except you are only 4 years older than me dood). remember to factor in that your interest on your mortgage would be deductible on your income taxes.
that video is wicked awesome - glad he's gonna have to take ya fishing. some of the best thinking about dilemma's happen while fishin.
This property is not listed so my choice to when it happens. Probably should do it within a couple months. Take your time PCat and thank you all.tb
ReplyDeleteI wish I had some words of wisdom for you, but alas I do not.
ReplyDeleteThe idea to speak to someone - a financial adviser, but it would have to someone you can trust to actually give you forthright information, is probably a good one.
If there is some way for you to get that house without major strain, it could be a very good thing.
And HAPPY BIRTHDAY!!!
It has been a couple weeks since I blogrolled you, but that whole pesky life thing has kept me from reading too many blogs of late.
Glad to finally stop by in earnest.
what a dilemma -- you should really talk to a financial person who can carefully look at your situation from all aspects -- especially that you are nearing "retirement" age and social security (if it still exists)
ReplyDeletei am hesitant to give advice without knowing more --- but i just know that borrowing from a 401K at your age (58) is something that should be a LAST resort since you can start taking money out legitimately at 59 1/2 -- if for some reason you lose your job between now and then -- you would have to pay the loan back in full in a short time. 401K loans are rarely a good idea.
best of luck and what a great place to live
Well, it looks like everybody's chimed in with excellent advice.
ReplyDeleteMy take on it, after some thought: You're the only person who can realistically assess the amount of risk you can handle. We don't live forever. Sometimes, the short-term joy is all we've got.
I'm extremely conservative, fiscally, and the risk would outweigh the pleasure for me. But one of my dearest friends, who was also extremely fiscally conservative, saved and scrimped for his retirement -- and died days before it was scheduled. Fuckin' days.
That said, scout around and see if you can get a less than 20% down loan; also, is there someone you can borrow from, rather than taking it out of your 401(k). If your landlord is agreeable, he can carry a second on the house.
Frankly, it's your life. You gotta do what makes you happy and see how much insecurity you can stand. Yeah, it's a bad time to be in debt. It was the same when we purchased La Casa de Los Gatos. The market was high, we bought high, interest rates were high, and a year later everything fell right through the floor. Man, did that suck. We survived. Do what makes you feel good.
Good luck!
ReplyDeleteOnce again thank you all for your wise words of advice. Tom
ReplyDelete