Home
Log in / Sign Up
    Private Messages   Advanced Search   Rules   New User Guide   FAQ   Advertise   Contact Us  
Forum -> Household Management -> Finances
WWYD Use yerusha or move out of state?
1  2  Next



Post new topic   Reply to topic View latest: 24h 48h 72h

amother
Amber


 

Post Thu, Jul 02 2015, 10:51 am
Would you use a Yerusha to live off of for 10 years and be left with nothing or would you move, out of state, far from family or friends, to an unknown future, just to be able to pay the bills without the yerusha.

I have a large Yerusha (roughly 1 million). And have spent roughly 200k on a house down payment/renovations. We can not afford to pay the mortgage, food, repairs, utilities and tuition where we currently live at our current income levels. The incomes would not likely change in the near future.

We can either use the yerusha for the next 10 years to pay off more of the house, daily expenses, and tuition then be left with nothing, and 20 years remaining on the mortgage. OR we can move out of state. To a completely different situation. The move would eliminate the need for a mortgage and most of the tuition costs. The move would be far from anyone we know, no family or friends.

WWYD?
Back to top

imaima




 
 
    
 

Post Thu, Jul 02 2015, 10:56 am
Aren't you still gonna be working during these 10 yrs? Why don't you use your income for as much as you can and leave yerusha for the rest? I don't get it.
Back to top

amother
Amber


 

Post Thu, Jul 02 2015, 11:02 am
Our income does not cover the house. It will only cover either the house, or living expenses. It will not cover tuition regardless. 3 expenses, and can only cover one independently. If we did not have the savings we would have to have partial scholarships to schools and be on some government programs. But we do have the savings and do not feel comfortable asking for tuition assistance (nor would we likely qualify).
Back to top

Rutabaga




 
 
    
 

Post Thu, Jul 02 2015, 11:04 am
Talk to a financial advisor. Put the $1 million to work making more money.

You make it sound like you have only 2 choices, but that can't possibly be true. Get advice. Think about your options. Don't make any decisions quickly.

Why did you buy a house you knew you couldn't afford in the first place? What would you have done without a yerusha?
Back to top

amother
Slategray


 

Post Thu, Jul 02 2015, 11:46 am
Move out of town and splurge on a yearly visit back home.
Back to top

mha3484




 
 
    
 

Post Thu, Jul 02 2015, 11:46 am
I agree with rutabaga. I would use the money to further my education or make investments to give me more income in the future. Why is it only two choices?
Back to top

amother
Linen


 

Post Thu, Jul 02 2015, 11:53 am
use the yerusha to pay off the house compleatly then live interest free for the next aw many years as u can and then hopefully u can sell the house for more than you made bringing u back the money and then some.
Back to top

sourstix




 
 
    
 

Post Thu, Jul 02 2015, 11:55 am
why dont you move to something more simple so the rent gets cheaper and use the income you have to pay whatever bills. invest some of it insomething. cd/house or get degree in something to get more income. or start a business in a small way. its a chance for you to do something meaningful. try to imagine its not available, what would you do otherwise. speak with financial advisor. as others have said. I would have a million I would invest it. not use the whole just to live from.
Back to top

sourstix




 
 
    
 

Post Thu, Jul 02 2015, 11:56 am
btw you can buy nice properties here in lakewood, for 410,000 the rent would pay the bills and you can use some of the rest of money for living and in the end you have property for children in the future. one option. there are other ones.
Back to top

Barbara




 
 
    
 

Post Thu, Jul 02 2015, 12:09 pm
OP, it sounds like you overspent on the house. Spending $200,000 between a down payment and renovations was probably not your best bet when your income is such that you would qualify for government benefits.

If the renovations were wisely made, and increased the value of the home substantially, then you should sell, and buy a more modest home.

Talk to a financial adviser about what to do with the money. If you had placed all the money in a T-Note, you would generate about $26,000 a year, without touching the principal. Corporate bonds would get you about $30,000. An investment adviser would probably tell you to divide things up -- some in safe government assets, some in the stock market, some completely liquid.

Let's say you net $30,000 on the asset. That would pay the mortgage on a $385,000 house. Not a mansion, but not a hovel, either. Leaving the rest of your income for other expenses.
Back to top

amother
Amber


 

Post Thu, Jul 02 2015, 12:54 pm
Thank You for the helpful replies! I know we bought the wrong house. Not only is it more than we can afford but it is in the wrong neighborhood (taxes too high). Some of the renovations was simply to make the house livable (insulation...) I wold guess we would net roughly 100K if we sell the house.

About half of the money is tied up now in courts and whatnot for another couple of years. About half was accessible right away. But I think Barbara has the right idea. Sell, move, and keep the money in the investments making money.

We were looking OOT for properties around 100K. We would then have no mortgage but not be near any family. This move would mean a large pay cut as well, but would mostly eliminate tuition bills for various reasons. This is what I am leaning towards. I cant imagine how freeing it would be to live within our means and able to put the entire yerusha into savings.

But if we invest wisely we would be able to live in the same area, using "income" from the investments to pay the mortgage. But we would still have the stress of "just making ends meet" with tuition and living costs. Still not qualifying for any aid due to the yerusha. This would leave us similar to the thread earlier about being financially comfortable but still stressed.

Hmmm a lot more to think about. A third choice. Thanks.
Back to top

Smile1234




 
 
    
 

Post Thu, Jul 02 2015, 1:12 pm
Probably would be a good idea to first rent something in whatever OOT place you choose to make sure you like the area, community, schools, etc... Don't throw $100k into another house before you're sure its the right place.
Back to top

Dolly Welsh




 
 
    
 

Post Thu, Jul 02 2015, 2:05 pm
Maybe stay where you are and take in two boarders.

Pile the girls into one room, the boys into one room, you and your husband into the very smallest of the bedrooms, and rent out the largest bedroom. You might be able to get two boarders in there, if they know each other.

Have a lot of beds that have under-bed drawers, and get rid of all dressers.

The kids will have bunk beds.

Eat at one end of the livingroom.

If there is a dining room, make it a study area where all the kids have their own desk and shelves.

Take a good look at the attic and basement and ask yourself if study areas can be fitted in there.

You have grounds. Look at your backyard and see what can be done there for seating, play, and a very business-like patch of potatoes, tomatoes, lettuce, and cabbages. Square-foot, vertical gardening. Talk to the local Agricultural Extension for pamphlets and advice. It's July but you might get some food yet. If all that's not your thing, concentrate on boarders.

I am assuming home schooling isn't your thing.

You sound as if both of you work. That means two cars, daycare, cleaning help, and expensive cooking. It may be cheaper if the woman quits work, cooks cheaply, has no car because all food is delivered. All that might be difficult but it might be worth it to stay in a community you like. That is worth suffering for.


Last edited by Dolly Welsh on Sat, Jul 04 2015, 8:13 pm; edited 1 time in total
Back to top

amother
Pearl


 

Post Thu, Jul 02 2015, 8:29 pm
seriously dolly?
I love you but the lady has a million bucks in the bank and your advice is for her to live squashed amongst strangers in her home?
a million dollars is a nice chunk of change and a lot could be done with it! the possibilities are endless!
I like the real estate in lakewood idea!
given her nice size yerusha, I dont think op has to give up her privacy and comfort to make more money.
Back to top

MagentaYenta




 
 
    
 

Post Thu, Jul 02 2015, 8:36 pm
amother wrote:
...
the lady has a million bucks in the bank...


Actually if you read her posts carefully she doesn't. A large part is tied up in court. Now she may have that in the end if the courts ruling is favorable or she may not.
Back to top

Dolly Welsh




 
 
    
 

Post Fri, Jul 03 2015, 8:20 am
This family has over-housed itself.

Moving far away so the kids can each have his or her own room, and the family generally not be squashed, or tolerate the presence of (nice, carefully screened) strangers, at the price of being ripped from everything they know, going to an utterly foreign community, nobody near them of the same thinking, culture, utter exile, well yes, two boarders and squashedness is preferable.

They have over-housed themselves. They really can't move, except in fantasy.

In reality, they can't move. As they have over-housed themselves, they should move over.

It is not a painless thing to do, but these are hard times.

Let them hunt up the oldest member of their families and have coffee with that person. After pleasantries, guide the conversation to how that person was housed, in youth.

It will be revealed that sharing space, bathrooms, and clothes was normal. You were poor if your shoes had been pre-worn. Shoes should always be new if possible.

We are still talking about living in a gorgeous house, with a loving family, in a fine neighborhood, with excellent schooling, a yard to play in, and enough food.

I fully acknowledge it's annoying, but some mental discipline and the right attitude will make it possible.

With no ill effects.

If handled firmly and no whining allowed. What's necessary must be done.

Yes. Have coffee with grandma.
Back to top

The Happy Wife




 
 
    
 

Post Fri, Jul 03 2015, 9:10 am
Dolly Welsh wrote:
This family has over-housed itself.

Moving far away so the kids can each have his or her own room, and the family generally not be squashed, or tolerate the presence of (nice, carefully screened) strangers, at the price of being ripped from everything they know, going to an utterly foreign community, nobody near them of the same thinking, culture, utter exile, well yes, two boarders and squashedness is preferable.



Dolly, where are you getting this idea of OOT communities. There are many, nice frum communities OOT. Utter exile? No one of the same thinking or culture? Scratching Head Yes, it would be an adjustment, and hard to be away from family, but hardly the picture you are painting.

OP, as other posters have suggested, talk to a financial planner. Get your money to bring in more income. Downsize to a house that you can afford. Move out of town if you want, but only if that's what you want.

I also know some people in NY who cheaper properties out of town, and have a good property manager manage the property.

B"H you have many options.
Back to top

sky




 
 
    
 

Post Fri, Jul 03 2015, 9:20 am
Dolly's idea isn't so nuts.

If the house is large enough with a basement perhaps you can make an apt down there and rent for income. Its common where I live for people to do that and it often it will at least cover the taxes. Either a regular size apt, or a smaller furnished apt that can be rented as a temp by the week.

It depends on if this is common in your area.
Back to top

Dolly Welsh




 
 
    
 

Post Fri, Jul 03 2015, 9:25 am
I know there are lots of nice frum communities OOT. But OP was mentioning something else.

It had, again, to do with finances. They are in a tight place financially. It sounded as if OP meant something much cheaper, and more remote.
Back to top

Dolly Welsh




 
 
    
 

Post Fri, Jul 03 2015, 9:30 am
Making a lovely, private apartment might be possible. But that may not be so easy.

Getting in a less demanding boarder, or two of them, might have to be done. OP may not have space or money for a real mother-daughter renovation.

Obviously zoning is a consideration.

And any gardening must be done in the back, never in the front, unless on a baker's rack in containers. Even that can produce food. These people are in a bind and need to be creative and energetic. Every little bit helps. Every little bit adds up.

Making your own pickles helps. Making your yogurt helps. Making bread helps. It all adds up.
Back to top
Page 1 of 2 1  2  Next Recent Topics




Post new topic   Reply to topic    Forum -> Household Management -> Finances

Related Topics Replies Last Post
Wanna move and my kids are against it
by amother
57 Thu, Mar 21 2024, 1:50 am View last post
Where would you move in my shoes? 27 Tue, Mar 19 2024, 12:05 pm View last post
S/o wanna move and kids against it
by amother
24 Wed, Mar 13 2024, 8:05 am View last post
Would you move if you can't afford your community?
by amother
12 Sun, Mar 10 2024, 1:15 pm View last post
Where to move? aliya or usa 44 Sat, Feb 17 2024, 11:26 am View last post