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The rental market was really tough when we moved up here, we initially found a place (after a lot of looking) then the landlord decided he wouldnt accept cats after all. As that our Philly place had sold we opted to move into a travel trailer which as you may imagine is a lot of fun in the winter. Our project has been much slower than anticipated as that the subs are booked way out and can all charge a premium.
As to my last line, sorry was making reference to a poster who talked about being debt free,,and how I'd love to be in their position.
Quote:
Originally Posted by Threestep2
We have had bigger than usual cats for a long time and no problem besides fees when we rented short term.
It sounds like the conversation was a conversation. Nothing changes. Your last sentence makes no sense. Can you rephrase please?
We are getting drywall installed as we speak, this will be done in about 2 weeks the the "finish" electric/heating and plumbing. The siding and hardwood floors will go on/in once we are moved in with our temporary certificate of occupany.
At this point taking a loss would put us in a position that we couldnt buy a suitable house cash out. I'd rather finish (even if it means waiting a year) and make a profit for all the crap we went through building this place.
Quote:
Originally Posted by Chas863
As I explained in my post above, you're NOT stuck by the 2-year tax limitation. That applies only to cases in which you make a PROFIT. Even then, it's not the end of the world. It simply means that you pay taxes on your profit, if any. If there's no profit, you pay ZILCH.
I don't know what stage of completion your house is right now, but from the sound of the situation, it would be a smart decision to sell it now, even at a loss, in order to maintain your health and your sanity.
Not sure what you mean by this but lets leave the wife out of this. Although we havent agreed on everything she made this move for what she thought was my benefit. Enough about my relationship, most of us disagree with our spouses then come to a compromise
Quote:
Originally Posted by otterhere
It's not "just your personality to worry." It SHOULD bother you, and you SHOULD worry. Are you being gaslighted? Maybe this belongs in "Romantic Relationships."
I had posted up in the retirement about missing urban life, (we moved from Philly to a very popular lake in northern Michigan). Heres our situation and my dilemma.
We sold our home in Philly and made a $250,000 profit. We bought a vacant lot on lakefront for $625,000 and we're building a 2600 sq foot home and framed it ourselves. I put $130,000 down on the lot and used the remaining $120,000 to start the build leaving us with a $500,000 construction/land loan. We didnt have enough to finish so we pulled another $150,000 from bank with an interest rate of 4.75 thats locked in for 7 years. Overall we will owe roughly $650,000 and house (when done) will be worth 1.15-1.2 mil.
We owe about $50,000 in credit cards/unsecured debt.
Income wise I bring in month $5000 pension, $3200 new job and wife does about $3500. New mortgage payment will be upwards of $4000 because of rates/lake taxes.
I'm inclined to flip the place and buy cash out somewhere thats not on a lake. Wife is saying it will be a terrible move as that lakefront property will always outpace other homes.
My first dilemma is my feel of isolation (being outside of a city) seems to want me to push to sell the place, second dilemma is I cant stand the idea of a $4000 mortgage until I'm in my 80's.
Am I crazy to want to sell a house with this possible equity at the risk of never living it down with the wife.
UGH -- I cannot get this to show up as lined up (Assets = Land $625,000; Liabilities $500,000 Construction Loan, $50,000 Unsecured Debt, $150,000 Additional Loan at 4.75% Total Liabilities $700,000) Future Asset $575,000 House; Future Liability $100,000 Selling and Moving Costs = Total Future Assets $1,200,000 Total Future Liabilities $800,000 = $400,000 Future Profit
Assets Liabilities
$625,000 Land $500,000 Construction Loan
$ 50,000 Unsecured Debt
$150,000
$625,000 $700,000
Future Asset Future Liability
$575,000 House $100,000 Selling and moving expensess
$1,200,000 $800,000
Remaining House Money after Lake House Completion and Sale = $400,000
So, the $400,000 is more than the $250,000 original profit...
So, it would be much worse to sell in an unfinished state (not enough money free and clear to buy the next house). It seems to me there is no other choice but to finish it. My life is killing me too and I don't mind the company ...
We know this:
Pension Income $5,000 ($60,000 Annually)
Husband Job $3,200 ($38,400 Annually)
Wife's Job $3,500 ($42,000 Annually)
Current Income Total $11,700 ($140,400 Annually).
Retired Income????? $5,000 + ???
What we don't know is 401k amounts and how much any additional pension and social security money are going to be. I probably would use the $400,000 and take no more than $175,000 on a 30 year mortgage (25% of the Husband's pension), but, preferably less than that to purchase the next house...
We will be in a grand total (land and secondary loans) about $660-680,000 when its all done, and even in a depressed market it looks like value would be atleast 1.15-1.2. I think we would greatly limit buyers if we do sell it before its done.
I know the topic went all kinds of different directions, but I'm mid 50's so no SSI in the near future. I make $5000 pension, about $3200 new job and wife is about $3500. Neither of us plan/or can stop working altogether.
When we bought the land (and with our savings) we budgeted for a $500,000 end point mortgage with the money we came to table with. Factoring the mortgage rates at the time we were going to be in a pretty good position with my new job covering all house expenses.
Thanks to a spike in material/labor costs our new mortgage will be probably that 660-680 mark. We will hold onto the current 4.75 loan for the next 7 years unless rates go back down again.
My 401 (and wifes) isnt much and really cant be factored in at this point.
Quote:
Originally Posted by Wile E. Coyote
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UGH -- I cannot get this to show up as lined up (Assets = Land $625,000; Liabilities $500,000 Construction Loan, $50,000 Unsecured Debt, $150,000 Additional Loan at 4.75% Total Liabilities $700,000) Future Asset $575,000 House; Future Liability $100,000 Selling and Moving Costs = Total Future Assets $1,200,000 Total Future Liabilities $800,000 = $400,000 Future Profit
Assets Liabilities
$625,000 Land $500,000 Construction Loan
$ 50,000 Unsecured Debt
$150,000
$625,000 $700,000
Future Asset Future Liability
$575,000 House $100,000 Selling and moving expensess
$1,200,000 $800,000
Remaining House Money after Lake House Completion and Sale = $400,000
So, the $400,000 is more than the $250,000 original profit...
So, it would be much worse to sell in an unfinished state (not enough money free and clear to buy the next house). It seems to me there is no other choice but to finish it. My life is killing me too and I don't mind the company ...
We know this:
Pension Income $5,000 ($60,000 Annually)
Husband Job $3,200 ($38,400 Annually)
Wife's Job $3,500 ($42,000 Annually)
Current Income Total $11,700 ($140,400 Annually).
Retired Income????? $5,000 + ???
What we don't know is 401k amounts and how much any additional pension and social security money are going to be. I probably would use the $400,000 and take no more than $175,000 on a 30 year mortgage (25% of the Husband's pension), but, preferably less than that to purchase the next house...
We couldnt rent (trust me we tried) due to having cats. People will rent to you if you have dogs but not cats, even when theyre fixed.
Additionally, I've never lived in a rural area, when we lived around Detroit we would camp up north and I enjoyed it quite a bit, never realized living up here would be a different story. Most of the lake is quite a distance from any towns, so not much of a choice but to be isolated a bit.
My wife and I actually had a long (phone) discussion about it tonight, her take is that we're stuck for atleast another year due to tax ramifications so that I shouldnt let it bother me. maybe its just my personality to worry lol. I dream of living the life most of you live with no debt.
I sent you a DM. You can do this!! Make a plan for the duration.
I believe the rule is you have to sleep, cook and toilet on the RV as well as have an address. How having the house built may complicate the issue..... don't know.
I love how a financial question gets replies on OP's marital relationship. Good grief
Well, wouldn't you agree that a couple has to be on the same page with regards to financial matters? incurring huge debt? make an urban to rural move? stuff like that? It's not unreasonable to bring it up.
Not sure what you mean by this but lets leave the wife out of this. Although we havent agreed on everything she made this move for what she thought was my benefit. Enough about my relationship, most of us disagree with our spouses then come to a compromise
I did the same thing. Willingly, was the 'front man' and then it didn't work out for ME. yikes. Hubs is perfectly fine being isolated and not having much social interaction. I, on the other hand, well here I am on CD. LOL
We couldnt rent (trust me we tried) due to having cats. People will rent to you if you have dogs but not cats, even when theyre fixed.
Additionally, I've never lived in a rural area, when we lived around Detroit we would camp up north and I enjoyed it quite a bit, never realized living up here would be a different story. Most of the lake is quite a distance from any towns, so not much of a choice but to be isolated a bit.
My wife and I actually had a long (phone) discussion about it tonight, her take is that we're stuck for atleast another year due to tax ramifications so that I shouldnt let it bother me. maybe its just my personality to worry lol. I dream of living the life most of you live with no debt.
It sounds like your discussion with your wife went well. She sees your point and agrees with the phrase "stuck for another year". Now you two can be on the same page and make a plan.
It's not "just your personality to worry." It SHOULD bother you, and you SHOULD worry. Are you being gaslighted? Maybe this belongs in "Romantic Relationships."
I think this is way off. He does have a problem that needs to be solved. Worried or bothered are just emotions that are supposed to motivate you to act but staying in that state can cause bigger problems. His wife could very well mean that.
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