Settling for 'good enough'

[GolfAddict]

GA- good question! The reasoning behind the 3yr vs 30yr mortgage is that currently, I have enough cash stores and earn enough of a paycheck to pay for this now, without a mortgage.

However, I can't guarantee how long I will be able to ride this 'gravy train' out (I reckon no one has a guaranteed job, though). If something either happens to me, or the industry folds, I would have to scale way back on $300K mortgage payments or living expenses as well. And that's where I get my stringing out of payments.

Then I'm going to vote for you to take the plunge on the new home. $100k down leaves you only $200k to finance, and at today's interest rates, payments on a 30 yr $200k mortgage would be pretty low. I'd be inclined to lock in a low rate while they are still there.

You can make some pretty hefty additional principle payments all the while the gravy train lasts and be able to pay it off well before the 30 years, even if something did happen down the road when you could only afford your minimum payment...

 

[SPIKER]

All depends on the inside of that hole err home you are looking at 2nd hand one. New roof means maybe water damage inside or it is still solid but gonna be bad. Being built in 1980 no need to worry about a lot of the normal things like lead paint or asbestos etc. Be sure to check out well & septic systems good as those both are pretty major expediency of $ for homeowner (usually no financing.) Not sure on your area but also with woods close and trees check for bugs, termites and ants would be two big ones to cause damage.

In either case be prepared for high expenses for small things like all new appliances, furnishings and with a new build costs of drives or storm shelters/basements often get missed.

M

 

[murphy1244]

Murph, I just write a local realtor for an inspection tomorrow. I think the realtor's are scared to show anything of the inside. Small town rumor is that the home was inherited, and now cash is king for the recipients. Here's the outside:

704 Little Eastatoee Rd, Sunset, SC 29685 is For Sale - Zillow

Pretty scary when they don't show the inside of the house. What is the land worth?? The house must be a loss

 

[Gem99ultra]

Anyone got experiences on settling on 'good enough' vs. getting your 'dream object'??

I'm about to start clearing land on Dad's 140 acre place to put up a new home; about a $300K venture. Just saw that 10min down the road from him, a brick 3 bedroom home on 6 acres for $99K. Saw that it needs a new roof and a lot of renovations on the inside. However, let's say you put another $60K into this home- you're done. Guess it depends on the renovations needed??

Just imagining paying off a mortgage in 3 years vs. 30 has me second guessing what exactly constitutes a 'dream house' now. But I would sure hate to settle for something that I'll regret, know what I mean? With Dad's property, I'm walking off the front porch to hunting and trout fishing, or I'm gonna be driving 10min to get there, but with a good bit of $$$ left over for all of life's other expenses. Gonna have to keep on praying for wisdom...

Here's a pic of Dad's back yard that, like a lot of little things, I would not have with the cheaper home location.

View attachment 401728

USAFpj, BT-DT, 4 years ago. I don't think there's any 'RIGHT' opinion. If you put up a new house, within 5 years you and wife will have a list of things that you WISH you had done different with the building of the new house. On the other hand, if you go with the go with the $99K house, you'll find that that $60K renovation really needed $120K renovation. You can bet that there are a thousand things that needed work that you either didn't find on pre-inspection (or were cleverly concealed), or the design wasn't quite totally to your taste.

In my opinion, I preferred to venture the $99K and pocket the surplus money that you could spend, just to be really sure you like the remote lifestyle. If you do, you surely will be able to sell the $99K house in the future, then build a house on your Dad's property. The entire transaction needs to be a Go very slowly thing.

As far as the inconveniences... you'll adapt very quickly to not having a Lowe's down the street, or having to think ahead on other supplies. No biggie, and in fact, it becomes a challenge that you'll enjoy. You'll have a lot more time enjoying the property.

 

[EarPlug]

Another question - What would it be worth after $50-60k of renovations?

According to the Zillow they estimate the property value at $217K. If this all works out you would make (on paper at least) over $50k on the investment.

FOR SALE
$99,000
Zestimateｮ: $217,254

 

[sixdogs]

Having been there and done that, my vote is for the dream. If you do the old house every waking moment will be fixing something. Septic likely bad, wiring kaput or dangerous, roof leaking or nearly so, bad drainage and maybe termites. You want to enjoy your life and not be a slave to a dilapidated building. Now, if you're 25 years old it's another matter because you're still full of vim and vinegar.

I chose the old house route long ago , lost a lot of time and money and 7 years later saw the light and built the place I wanted in the first place. I don't have a lot of regrets in life--and don't really regret the old house--but I almost do. Just my two cents and whatever you do will be the right thing for you.

You could also buy a pre-fab house, have it assembled on your lot and it's cheaper and built perfect. Start on Monday, move in on Friday.

 

[dave1949]

Build the new home but downsize the dream? $300K would build a good bit of house, especially assuming there is no land cost in that--unless your are planning on gold-plated faucets.

Since you are seriously contemplating the rehab house and are somewhat attracted by the potential savings, maybe that's a sign that you aren't totally comfortable with spending $300K on a house.

I have no idea what you need or want house-wise but remember you will maintain, clean, repair, heat, cool and pay the taxes on whatever you build for a long time in addition to paying for it.

Personally I would rather leave some money invested for whatever you may wish to do later, than to sink it into a house. Once it is spent on the house, it isn't coming back unless you sell, which I don't think you would do from your other threads.

 

[tcartwri]

I always have the quality of my water supply high on the priority list. Crappy well water is enough of a reason to walk away.

 

[MacLawn]

Since my place is not so far from Seneca, and I know South Carolina quite well, I say go for that 6 acre house! Offer less of course, if you can. Just hire a good inspector and/or contractor to go with you and give estimates for wha' needs to be done to get the house in top shape. That era southern brick house is usually very well built! Hmmm, I'll go on up and get that place meself. I like that area!

 

[USAFpj]

Well, we're gonna go look at it whenever the realtor calls back. However, I took the wife back over to Dad's for a walk, and I feel that, although there's a chance to save a good bit of coin on the 6 acre home, there's just no replacing the ability to step out and and have instant access to your own 140 acre compound.

Also, my comparison has been a bit flawed- The home, foundation, septic, well, road grade would roughly be in the $225 category. However, I always add a percentage for surprises, and the shop would be $$ as well; that is the reason for the $300K estimate. I really should be comparing apples to apples.

I'll let you guys know what I find when I get over there.