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I would not sell property or stocks right now. In your position (and making a whole boatload of assumptions), I would hold onto the house, sell all but one small, old, efficient car, cancel or downsize all subscriptions (magazines, newspapers, cable, internet, telephone frills) and put the family on a cash-only weekly budget where you withdraw the ammount of cash you can afford, and spend only what's in your wallet that week. Run out of money? Keep a stock of ramen in the cupboard.
You know, your not the only one that told me the same. People said to hold on to it, due to the high growth we're getting here in Austin and homes around my neck of the woods are costing about 140K more then mine and have much smaller lots. Buddies told me to wait until the property across the street completes the retirement housing / neighborhood w/ it's pretty waterfalls, sidewalk appeal and then just hold.
If it was me and if I never got a pool built I would of used it as a rental property, but no way will I rent it w/ a pool. So yes, I will be holding on a little longer. As much as my wife wants to go to school full time, it just needs to be put on hold. As much as it sucks, I think we'll be making loads of money on our property when it is time (market is maxed out around here).
Location: Stuck on the East Coast, hoping to head West
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We own right now, but we bought before the bubble so have a lot of equity and a low mortgage--so low that there is no way we could afford to rent a house big enough for all of us (3 kids and a Saint Bernard). Had we not bought then, we wouldn't have bought at all. Also, we have homestead exemption so our taxes are alot lower than our neighbors. Our homeowner's insurance is quite low, too. Almost all of our money has gone into replacing roof/siding/heating and air/appliances/carpet. We've lived here for so long that we've gone through two entire sets of appliances. Oh yay. Yeah, I'm done. And the worst part is that I haven't been able to afford new furniture or clothes in years. The roof, siding, paint, floors look in the house look great though.
At some point, I think I got duped about the joys of home ownership. I mean, the intangible feeling of owning your own house (which, by the way, do you ever *really* own it? between HOA,s, property taxes, repairs,etc) has proved way too elusive for me.
My husband and I are planning to stay in our house for a few more years. When the kids start moving out--we'll start downsizing. And renting. No yards, no repairs, no sick feeling in the pit of my stomach when I have to find an electrician, etc. and when my neighbors annoy me or the neighborhood changes to something I don't like-- I'll move. Landlord annoys me, I'm out. Yeah, owning has been fun, but I'm done.
Have you thought about working with a property management company to rent your home out? This way you could keep your home and even make a little money off of it, while you rent a less expensive place?
If it's a really nice home, many property management companies work with larger companies to rent the homes out to executives... or perhaps there's a family looking to rent a nice home with a pool in Austin?
Also - your wife could get school loans to pay for school. You do not have to begin paying school loans off until you are no longer in school - by that time, she would have a good steady job again and things could be more manageable?
Depending also on what field of work she wants to go into, there are internship opportunities and some fields (like nursing) often pay for the training or there are grants and scholarships which cover the cost of school...
Also, some places (I know Verizon Wireless does this) if you work full time, they will pay for your school tuition. There are many places that do this. Instead of working contract or whatever, it might help your wife to get a different kind of job - one with a place that will pay her tuition? It might not be a very glamorous job, I mean it might just be like working at Target or CostCo or someplace, but still...
I agree that you shouldn't give up your house. At this time, in this market, you will probably kick yourself later for having done it.
We are renters. We have always rented, and we love it. We always rent in a neighborhood with good schools which is also near enough to my husbands job so that he can walk or bike to work. We walk or bike with the kids to school. We love not spending any money on repairs or landscaping or upkeep. We don't bother "decorating" because - why bother? Our place has a garage as well as a carport, and small yard that we grow herbs in. It's always been really nice, and we save thousands of dollars a year that we tuck away into CD's, retirement plans, and other investments. We are debt-free - even our cars are paid for. We only have 5 bills that we pay monthly. It's pretty awesome. We have two boys - one middle school age and one elementary school age - and they enjoy the ammenities of renting, too... in the past we've had pools and gyms and the large theaters and things like that... currently where we are renting there isn't a pool but they do have a gym with basketball.
However - with the way the housing market is right now, we are seeing the cost of houses drop and we have been looking around. It's tempting us. We are wondering if buying now would be a good time... as houses are so cheap! But... it seems like everytime we find a house that we feel we could love... we then remind ourselves of how expensive home ownership is... the mortgage payment would be double what our rent is... then you have to add on property taxes, home owners insurance, upkeep and repair, appliances, landscaping, even the utilities go up as there is more home to heat and cool... and when something breaks, we would have to fix it. We sort of talk ourselves out of buying every time...
Also, my husband tends to be a bit nomadic. He has never lived in the same place very long, and since marrying him - that's how my life has been as well! We've lived in many different places - he transfers a lot with his job - and so renting has always been the simplest choice. We are pretty sure that we are going to stay here in Oregon for a long while now... at least the next 5 - 10 years - so that is another reason why we have been tempted to finally experience buying a home rather than renting one.
Maybe someday we'll find a place that will seriously change our minds, but until then we are perfectly happy - and financially better off - renting.
Sorry for this reply getting long and rambly...
Last edited by haggardhouseelf; 06-09-2008 at 11:12 AM..
Hey Mike... Have you considered renting out a room to someone who can't afford and apartment or home, but is responsible and trustworthy? I went on craigslist.org and ran across an ad where a girl needed a room. Turns out she's a really nice girl who worked in town during the week and then goes home on the weekend. Maybe something like that could suppliment your mortgage.
Also, you might consider renting to an elderly person who just wants someone else to do the cooking and cleaning. Company can be good (especially if you have kids or pets) and the shared expense of the mortgage can be a positive for all. Just be careful who you chose because some folks know how to work the system and take advantage.
Hey Mike... Have you considered renting out a room to someone who can't afford and apartment or home, but is responsible and trustworthy? I went on craigslist.org and ran across an ad where a girl needed a room. Turns out she's a really nice girl who worked in town during the week and then goes home on the weekend. Maybe something like that could suppliment your mortgage.
Also, you might consider renting to an elderly person who just wants someone else to do the cooking and cleaning. Company can be good (especially if you have kids or pets) and the shared expense of the mortgage can be a positive for all. Just be careful who you chose because some folks know how to work the system and take advantage.
I talked to a realtor the other day and was 'ok' for what I could sell my home for, but we're going to hold off on it and hold tight until maybe March of 08.
As what you mentioned, it's called "room-share". Maybe I would, but we have lots vested in our home. A lot of expensive luxury items that I could not think someone from the inside to rob us.
A buddy of mine had rented a nice big home, he brought in one of his other good buddies to be roomies w/ to balance the expenses. One day he comes home and his custom car was ripped off, all his home theater equipment gone, jewlery and what not. He blamed is room-mate and that person denied everything and said he had no idea about it. Funny that he was the only one that new about his secrete place and other stash places. They ripped is home clean and he thinks it was one of his buddies that was welcomed into his home and scoped it out. At the end, he lost everything and the friendship w/ that old roomy.
I been ripped off in the past and none the less bringing in a total stranger into my home and rip me off when they find out what our work schedule is. I am very open to people, but not that open. If I had a basic home to where no-one would not want anything; sure my door would be all OPEN for the opportunity to do business
I would not mind elderly, but I don't think they would enjoy walking up two flight of stairs. I do enjoy elderly people and love to talk about THEN and NOW. Damn I miss my grandfather
We do not know what our economic future is, so I would make sure my wife were studying something that will be lucrative, and I also would not be in debt of any kind.
I would get the small apartment, maybe in a two family house because if you are good tenants if the landlord lives there, he/she may not raise your rent as much as an apartment house(investment) would.
It always helps to have positive relations with the landlord, and since you are a good and responsible property owner and probably can see to small repairs, a landlord would love you.
I suppose, where you are, you cannot rent a finished basement or something as an apartment? If you do, try to have a month to month tenancy and not a lease so if they are undesirable you can dump them fast. If you are also in the building, you will be there to keep an eye on them. Make sure they know that you will come in from time to time to inspect windowsill and woodwork, etc, to see that the place does not need repairs and that they are keeping it well.
People who have never had their own home and only lived in apartments are often not as careful of taking care of property. A lot of that is just lack of knowledge.
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owning vs renting
