If you already have to take on long-term consumer debt for maintenance, such as what you did for the AC unit, it is a clear sign that you can't afford the maintenance going forward. A house, especially an older one, will have ongoing lumpy expenses. The longer you stay, the more you will incur. If you must borrow for each one, even at 0%, you will at some point be unable to obtain any more credit, or default on your debts because the sum of monthly payments is too high.
Your point is valid & we are evaluating the situation going forward. We have been researching states & cities that are affordable that also have the best resources available for our daughter's disability, so a move is likely once we find the best location. She's going to need more than just financial assistance. She's going to need actual human assistance.
With all the issues you describe, the house sounds like a fixer upper. There are investors who will buy those as-is, for the right price.
Try to find out what the house is worth. Talk to a local realtor. Have them visit and inspect the home, and do a competitive market analysis.
We have a good idea of the value. When we refinanced 4 years ago the mortgage co had an appraisal done. Actually 2 appraisals were done for 2 different banks by different appraisers. The same problems we currently have were also present when those were done. Once we figure out the best place to relocate, we will have a realtor come in & possibly a home inspector.
I'm sorry you are also dealing with a disability. I do feel strongly that there should be more support for the disabled from the govt, like a tax credit to help offset the cost of a mortgage or for simple household help, but I feel like the disabled tend to be forgotten when legislative priorities are being decided. Biden is proposing a $400 per month payment toward first time homebuyers' mortgages for 2 years. Where is a similar payment to help the disabled with a mortgage or rent? But I digress over something that's of no help now.If you are lucky, it will cover the mortgage and the AC loan, and you will hopefully have some amount left over. Sell it while you still can. Don't wait until you are upside down. Don't burn through your savings to fix the house. Let the next owner choose their brand of windows floors etc. Do not fix anything anymore unless it jeopardizes your safety. For example, I had a gas leak that cost $6k to fix, and not fixing it could have cost me the entire house. Once sold, rent a home. Rent should cost less than your current home carrying costs. If something breaks in your rental, it's on the landlord to fix it. Not your job. Fixing a home can be expensive and stressful at your age. And if the landlord doesn't fix it or raises your rent too much, you have the ability to move. Moving is very stressful, but it could still be the best financial choice for you.
I say this as someone dealing with disability myself, owning a huge home that is an incredible expense generator. I don't do any of the maintenance myself either as I'm not skilled in that area. Fortunately, I'm not taking on any debt yet for the carrying costs, and I don't have a disabled child either. I am staying put at the moment, but giving consideration to moving as well in the future, as disability income is much more limited than wage earnings. In my case selling the home, investing the proceeds, and renting a home half the size would save over $5k/month. That is a ton of money not spent on maintenance. But I like my home and haven't been able to make that call yet. I may have to eventually if I can't work again.
You seem to be in an enviable position if you can sale your current home, invest the proceeds & be able to save $5k a month renting. That's a dream on this end. Being able to free up that kind of money would make a substantial difference going forward.
I appreciate your reply.
Statistics: Posted by Royalty — Tue Apr 02, 2024 1:41 am — Replies 22 — Views 2726