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Should we sell our house to get out of debt?
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amother


 

Post Fri, Nov 17 2006, 7:37 am
only1 wrote:
I don't think selling your house would do the trick. Instead of paying your mortgage you would be paying rent. I'm sure it would increase your cash flow, but no where near the to the $3000 you need.
You need to stick it out in the house while times are tough, and when you are ready to retire - well then you can sell the house and live off that money. The market is going to go up and down so much, the best thing is to stay put and ride it out. Even if you squished yourself into an apartment for a few years - the market might have shot up by then and you will be stuck. And your lovely house's value would have shot up also!

But right now you need to find somewhere to increase your cash flow. Could you juggle the kids around a little to make room for a boarder? That is a nice source of income. Can you make your basement into an apartment and rent it out?


Let's use the $2000 figure instead, because we realistically will still continue to get help from parents with medical, etc.

If we stay in this house until it is paid off (30 years assuming we don't pay it faster), we will have paid well over $1,000,000 in INTEREST Exclamation for a house we originally bought for $250,000 (with a $200,000 mortgage). shock

Our basement does have the potential to be made a little more finished so that a boarder might live there.... but there is no bathroom down there and our house is VERY small and there would be a huge loss of privacy for our family if we did that. For the right high school girl I would consider it, though.

I feel like right now, cash flow IS what matters most and the long-term will just have to wait. Otherwise the hole we are in will only get deeper. shock

Being in this situation makes me understand the "motive" in all those murder mysteries where an old, cranky relative is killed for their life insurance policy!!!!!! Mr. Green Just kidding!!! I don't have any old, cranky relatives!!!! LOL LOL LOL LOL But seriously..... Help What
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amother


 

Post Fri, Nov 17 2006, 7:43 am
shoy18 wrote:
Selling your house should be last last resort. Homeschooling well if you can stomach it kol hakovod.

Can your dh get a job at a day school or something along those lines?

Another thing to consider is your mortgage rate maybe you can refinance and lower your rate. their are many things you can do to lower your payments, you might also think about talking to a personal financial planner who might be able to give you some ideas that we would never think of.


I happen to love homeschooling and I don't understand why it is considering "stomaching" it to be living and learning with your children... Rolling Eyes Not everyone feels a need to ship 'em all off all day long. Rolling Eyes

My husband has had day school jobs and he enjoys teaching. But the pay is Rolling Laughter Rolling Laughter

I said in my original post that we are currently refinancing. It will help a little bit but not enough.

We are considering talking to a financial planner..... but how to pay him/her? Confused Confused
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shoy18




 
 
    
 

Post Fri, Nov 17 2006, 7:48 am
Maybe he can do some tutoring after school as well.
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amother


 

Post Fri, Nov 17 2006, 7:48 am
only1 wrote:
chocolate moose wrote:
I don't know about the long run, but the short run, it's cheaper to rent than to buy...you don't pay heat or repairs and if you live in a little basement or a building, you can save even more on rent.


But we usually live with the long run in mind, not the short run.

Unless you are saving a ton by renting - in the long run you are not helping yourself because you are just throwing the money out to the wind.


OP here again - sometimes you have to just survive in the short run so you can even think about the long run. We are looking into apartments as one option. And as far as "saving face" with friends/community, we can always say that we are renting until we find a new house. Everyone knows we are squeezed into our current house. Compress

However, I don't think we can really all squeeze into a basement, etc. without all going Bounce Shaking Compress Banging head
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chocolate moose




 
 
    
 

Post Fri, Nov 17 2006, 7:54 am
I have a friend with Section 8 and she lives in an apt. She also owns a home - which she rents out - and says it's financially better for her that way!

Sound crazy, no?
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amother


 

Post Fri, Nov 17 2006, 7:54 am
shoy18 wrote:
Maybe he can do some tutoring after school as well.


We both currently do lots of tutoring and are well paid for it, but there just aren't enough hours in the day. It just doesn't add up to ENOUGH!!! Question Question Question

I don't mean to negate all these good ideas. They are all helpful. But I think we need to get RADICAL! 8) 8) 8) We have thought about renting an RV and traveling the US for a year (taking our businesses on the road)...... spending a year on a moshav in Israel....... and of course selling the house/renting/getting a job on a dairy farm out in rural wherever....!! LOL LOL LOL LOL LOL But actually we are seriously considering ALL options. We want to look back in five years and say, wow, that sure was radical, and aren't we glad BH that we did that because we are now on the right track!!! Sunny Sunny Sunny
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shoy18




 
 
    
 

Post Fri, Nov 17 2006, 7:58 am
OK Then, Renting an RV probably isnt the best idea, GAS PRICES!!!!!!!!!!!

Why not rent your hosue out and move to a smaller place? Obviously taking into account the rent would cover the mtg. That way you wont loose your asset but wont have to shell out all that money.
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amother


 

Post Fri, Nov 17 2006, 8:06 am
shoy18 wrote:
OK Then, Renting an RV probably isnt the best idea, GAS PRICES!!!!!!!!!!!

Why not rent your hosue out and move to a smaller place? Obviously taking into account the rent would cover the mtg. That way you wont loose your asset but wont have to shell out all that money.


Good point about gas prices, but we would have to crunch the numbers to see what it all really adds up to and how it compares.

We have thought of renting our house...... but I don't know if we would qualify for another mortgage for a second house..... Question It would be a nice solution if it could work. Also, our house is almost as small as you can get..... Exploding anger and with the slow (buyer's) housing market, are people more likely to buy rather than rent, especially if the rent is high, which it would be for our house? Question Question Question Question Question
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amother


 

Post Fri, Nov 17 2006, 1:00 pm
Today we have been talking about everything, including all of YOUR helpful opinions and advice! Yes Yes Our current favorite plan is to try to downsize to an (even) smaller house in our neighborhood, which would cut our mortgage payment basically in half. Meanwhile we will do anything and everything to increase our income..... 8) 8) 8) 8) We are actually looking at two houses on Sunday. Small but we hope we can make it work with some creativity......... Scratching Head
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mimsy7420




 
 
    
 

Post Sun, Nov 19 2006, 7:55 am
Maybe look for one that has some options with the basement - so you can rent it out to a tenant.
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amother


 

Post Sun, Nov 19 2006, 9:47 am
Or what about drastically cutting other expenses?

Food
Tuition Breaks from the school

??
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withhumor




 
 
    
 

Post Sun, Nov 19 2006, 9:51 am
We earn a nice combined income and with all the scrimping and saving, I don’t see us taking the plunge and buying the ‘house’ anytime soon, we’re still renting! I say deprive yourself of whatever you can (since I’m doing it anyway) and at least have that house. I don know much about mortgages yet but I bet you’re having a very tough time, sorry!
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amother


 

Post Sun, Nov 19 2006, 7:07 pm
withhumor wrote:
We earn a nice combined income and with all the scrimping and saving, I don’t see us taking the plunge and buying the ‘house’ anytime soon, we’re still renting! I say deprive yourself of whatever you can (since I’m doing it anyway) and at least have that house. I don know much about mortgages yet but I bet you’re having a very tough time, sorry!


Definitely tough.... Crying As far as scrimping, depriving, etc.... saving on food, tuition breaks... we have been on that path already for a long time. There's no more fat to cut, or at least not enough to make a significant dent.... the gap is just too big. Help We are looking into various additional employment possibilities...... also seriously thinking about moving...... What and trying to stay optimistic that this will all lead us to a better and more secure place in the end. Thumbs Up Thumbs Up Thumbs Up
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leomom




 
 
    
 

Post Sun, Nov 19 2006, 7:19 pm
As far as employment goes, is there any way you can work outside of the house for, let's say, three hours every morning? Then you would still have most of the day for your kids & baby, but you will have a steady additional income to count on.
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amother


 

Post Sun, Nov 19 2006, 7:21 pm
only1 wrote:
Maybe look for one that has some options with the basement - so you can rent it out to a tenant.


That's a smart idea. I will keep that in mind as we look!!!!! Thumbs Up
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mimsy7420




 
 
    
 

Post Mon, Nov 20 2006, 3:57 pm
It's what a lot of people do when they are looking for a house - because tenants are a big big help with the mortgage payments.
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amother


 

Post Mon, Nov 20 2006, 8:21 pm
yy wrote:
As far as employment goes, is there any way you can work outside of the house for, let's say, three hours every morning? Then you would still have most of the day for your kids & baby, but you will have a steady additional income to count on.


I'd consider it. There are some things I could do.... not sure of how to get those hours, though, at the pay I'd need....Confused I'd rather not be out at all, but my husband and I agreed that we'd look into anything & everything (legal and moral of course!!!!)
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