| please share your opinion |
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phoenix123
New Poster
Cash: $ 0.50
Posts: 2
Joined: 03 Dec 2009
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| please share your opinion |
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hello everybody,
this is my first post! my husband and i are in our late 20's and do not have much knowledge about finance, investing or the real estate market. we are trying to plan for our future and are in need of some good advice. please allow us to describe our situation. we would be very appreciative of any advice we can get. please excuse any possible mistakes in this post, english is not my first language. i apologize for the length of this post, i am a woman and do not know how to be brief here we go:
my husband and i currently live in a home that is worth less than we owe on it. we want to move because the house has gotten too small for our family. we have tried to sell it for the amount we owe on it, without success. we did however find a person who is willing to rent it for the amount of our monthly mortgage and HOA payment. if we rent it out, we would break even, as long as nothing breaks, needs to be replaced, the HOA raises their dues or our interest rate goes up. we have an adjustable rate mortgage. if we refinanced, our interest rate would be a lot higher (right now it is only 3.5%). in order to refinance, we would also have to pay the difference between the value of our house and our loan, which we would like to avoid. we would like to sell the house as soon as possible without losing money.
would you sell the house for a loss?
would you refinance and rent it out?
would you not refinance and rent it out?
next concern is the bigger house we would like to purchase. we are expecting a gift of approximately $180K from a family member from europe. this would be enough money to buy the kind of home we are looking for in cash.
would you use the entire $180K to purchase a new home?
would you invest it otherwise and get a mortgage?
would you use part of it and invest the remainder?
if you would not spend it all on the house, what would you invest it in?
thank you in advance for taking the time to respond and share your opinion!
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Thu Dec 03, 2009 5:23 am |
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coaster
Senior Advisor
Cash: $ 1318.60
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Location: Wisconsin
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This is just to welcome you to the forum -- so.... -- welcome!! Don't apologize, I'd rather see too many details. My first reaction off the top is to do nothing until you get the gift. But I don't have time to write much more now. Stay tuned; I'm sure someone else will have more to say. 
~Tim~
Eye Candy : Why Whimsy
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Thu Dec 03, 2009 3:58 pm |
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Raptor
Full Member
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Posts: 70
Joined: 15 Nov 2009
Location: Missouri
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Renting is a topic in itself. Unless you know what you are doing in this area, do not rent. Great tenants are already living somewhere and rarely move except to purchase their own home. You will go through several tenants to get a good tenant that will pay on time and take good care of your home. They all seem nice and happily agree at first, but once they are in.... good luck. I would just take the loss and sell, while the housing market will stabilize, I'm certain there will not be a frenzy of buyer to drive prices back to their overvalued levels. It'll be another 10 years before we see any significant increase of home values. As for investments, the economy is on a seesaw, it can go either way, great arguments out there for each. Same advice here, unless you know what you are doing, now is not the time to make a large investment. I would use the money to cover the difference when you sell your home and use the rest to pay for the new home. Anything remaining, I would just wait until the end of 2010 to reevaluate the market conditions.
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Fri Dec 04, 2009 11:17 pm |
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ChestertheInvestor
New Member
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Joined: 23 Nov 2009
Location: Boulder, CO
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| Wait It Out with a Rental Agreement |
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I'd wait out the poor real estate market by signing a rental agreement on the property, and allowing the tenants to pay down your mortgage.
In a couple years from now your real estate will be worth considerably more than it is now, at which time you can decide whether you want to sell or keep it as a rental property.
And hey, who knows, at a certain point within the next few years you might be able to rent it out for a monthly profit.
Also, I would NOT refinance, because there's no compelling reason to do so, and many reasons why NOT to do so.
Best of luck,
Brian
Please use your signature
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Sat Dec 05, 2009 1:57 am |
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shanye
First Time Poster
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Joined: 23 Dec 2009
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Nice and very informative posts
thanks : )
[unallowed url deleted, despite the notice in the preceding post. unbelievable.]
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Wed Dec 23, 2009 4:42 pm |
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