oksunshine213
First Time Poster
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Joined: 17 Jul 2008
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My father recently passed away. According to his will and living trust, his assets are to be divided 4 ways amongst 3 living children and the children of 1 deceased child. The biggest asset is his home sitting on 2 1/2 acres: mortgage free. The home should appraise at about $140K.
While the home needs some cosmetic work, it sits in a tranquil area about 40 minutes drive from my work. I'm lured to the serenity and am considering buying out the shares of the other beneficaries.
Here's some info: I currently owe about $32K on my home and should have it paid off in 4 years. Market value is about $85K. I have no other debt; earn $70K annually; have a 401K of about $170K ; about $16K in savings; about $3K in checking. I would like to retire in 6 years (age 62, is that a pipe dream?). In addition to my 401, I'll have a pension from my employer and social security benefits (fingers crossed).
I don't want a debt that would impede my retirement (contingent on pipe dream answer). Then there's the commute to consider as well since gasoline prices are up. These seem to be the biggest considerations. Would it be possible to have this home paid off in 4-6 years? The equity in my home could go toward the lien of buying out my siblings. Or I could possibly rent my home and have a small monthly positive income. Or am I being too emotional about dad's place and perhaps should stay put as I had originally planned?
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Thu Jul 17, 2008 6:30 am |
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oldguy
Senior Member
Cash: $ 309.10
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Joined: 21 May 2006
Location: arizona
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I would put a 30-yr mortgage on your Dad's house for about $105,000, and use the $105,000 to buy out the other 3 partners. The payments would be $610/m - you have a solid $70k income that would support that.
That way you wouldn't need to touch your 401k retirment account or deplete your savings (and both would be available as reserve in the case of a job loss or other emergency).
Take a little time to get the cosmetic work done - then move. And then sell your house for $85,000, pay off the $32k note, and add the extra $53,000 to your savings or investments. Or use it to prepay some of the $105,000 note if you prefer. (I wouldn't, I would keep the loan if you can get a good 6% fixed rate note).
That would leave you in retirement with about $250,000 in cash reserves, a $610/m note, and both a SS check and a Pension. The Pension & The SS should cover most of your needs, the $10,000/yr of interest from the $250,000 would be available each year if you needed it - and of course you can always pull cash from the $250,000 principal if you really need something - say a Cruise, a new Cadalac, or a Harley?
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Sun Jul 20, 2008 12:23 am |
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ChantellWilson
Member
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Joined: 16 Oct 2011
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If you already own half the house,then is your fathers estate not half the value of the house?So dont you owe your sibling closer to €60k ?
Apartment Rentals
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Mon Oct 17, 2011 5:24 pm |
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