Home purchase

Addicting

Addicting

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SW Michigan
Shopping for retirement houses and the recent debacle with the neighbor’s property posed a question in my mind.


Can you afford to buy your house from yourself?

I bought in 2016 and refinanced at a 2.25% in 2020. We built a barn and refinished the basement. Payment is 1100 a month. When it comes to finance or equity decisions losing that 2.25% is a major player in any discussion.

House is worth 350 conservatively. Making it a 2550ish payment with taxes and insurance.

While we could afford it, it would significantly decrease trips and hunting expenditures. So can you buy your own house?
 
When I purchase our house in 2013 (wife and I were not married yet, so I transfered it to both of us after we married), I was working a good job and had no problem with it at all.

I kept the size small (1200 sq feet).

We refinanced in 2020 from a 30 year FHA to a 10 year with the local credit union.

I had to medically retire 2 years ago at the age of 40. My wife is working at the local clinic, and we are doing okay, but could certainly use a bit more each month to make things more comfortable.

No way in hell we could afford iur house if we were looking to buy.

If we were looking to move to a town to the east, closer to medical care, we would end up with a 30 year mortgage and a payment similar to what you describe, which is 2x++ what ours is now.

We have 5 years, and 48k left on the mortgage.

I can wear out new cars for cheaper than moving just about anywhere.

I'll die here.
 
Bought mine in 2016 for 85k at the 2.25%. Done renovations about every year. I'd guess I could sell it for 165, especially if interest goes down a bit more.

Cars are paid for so we could afford the payment right now but not if you include doing a vehicle payment as well.

I bought this before I met the wife, she wants an acreage. Which might be doable if I can fix this up how I want it and sell it for a good price.

Does anybody know how to explain to a wife that pumping money into this house helps bring the value up?
 
blackbeard said:
Bought mine in 2016 for 85k at the 2.25%. Done renovations about every year. I'd guess I could sell it for 165, especially if interest goes down a bit more.

Cars are paid for so we could afford the payment right now but not if you include doing a vehicle payment as well.

I bought this before I met the wife, she wants an acreage. Which might be doable if I can fix this up how I want it and sell it for a good price.

Does anybody know how to explain to a wife that pumping money into this house helps bring the value up?
Click to expand...
Suppose how you are pumping money in. Very few improvements of existing infrastructure have good ROI.
 
Nope, probably not since 2021 or 2022. Bought in 2016 $219k at 3.5%. Have not refinanced. Bought adjacent lots for a steal $30k for both at 4.5% with a second mortgage in 2018. Selling all today would be well north of $700k. We make (imo) significantly more now too but would not feel comfortable spending that on a house. Would probably be looking under $450k, maybe less, idk depending on interest rates if buying again, which unfortunately doesn’t really get much now here.

I recognize we are incredibly fortunate to have bought when we did, at the time that was an insane amount of money to us. Crazy what devalued currency does. We both like the house well enough, thankfully.

A lot of those that bought before COVID got a lifetime of equity in 2-3 years. My neighbor said that it will be one of the biggest wealth separation gaps (pre vs. post COVID homeowners) in the future. If the market doesn’t correct I would tend to agree with him.
 
Big Sky Guy said:
Nope, probably not since 2021 or 2022. Bought in 2016 $219k at 3.5%. Have not refinanced. Bought adjacent lots for a steal $30k for both at 4.5% with a second mortgage in 2018. Selling all today would be well north of $700k.
Click to expand...
Wages have not compensated for that growth. Young families who would need your place to start cannot afford to even step on the curb. That is scary for what the next few years will become.
 
Last edited:
Addicting said:
Wages have not compensated for that growth. Young families who would need your place to start cannot afford to even step on the curb. That is scary for what the next few years will become.
Click to expand...
Skilled tradesmen are charging good money right now, and staying busy. It's all relative, I supposed. It has been that way, as long as I have been in the trades. The dollar's buying power has definitely shrunk over the years.
 
Yes. I’ve been in my house 20 years. Its value has gone up quite a bit but so has my salary. I could make it happen again.
 
Forkyfinder said:
Kids born in the 90s are the first american generation to live out a standard of living that is lower than their parents.
Click to expand...
I hired a guy, fresh out of college with a architecture degree, a new wife, and baby, in the mid 90s. The sad part was, I could pay him a a better wage as a green as grass carpenter helper, then any architectural firm was willing to pay him. He got some hands on experience for a couple years then an architecture job in the Portland area. It all worked out in the long run.
 
Could we? Sure, but it would suck. Bought in 2011 and refinanced @2.25 when we had the chance. The big killer out here (COS)is insurance and taxes....especially insurance. Just crazy to think we pay 4 times for insurance compared to back home and at least twice on taxes. The silver lining for me is that we will be moving back to a rational part of the country and will easily be able to buy something at least as nice with our equity. House is currently worth about twice what we paid.
 
This is certainly an overgeneralization, but a substantial portion of Gen Y seems to want to "skip the hard part". They don't want to have to move away from home, they want to save but also "enjoy life now", they don't want to accept anything but their dream house, they want acreage and a second home. There is no understanding of sacrifice and working over time to get these things. So they wait for their parents and grandparent to die so they can inherit everything, with no taxes of course.

Apparently they should move to Florida, where 2+2=5.
www.newsweek.com

Ron DeSantis updates Florida on 2026 plan for property tax vote

The Florida governor has said he is working on a proposal to abolish property taxes in the state that will be put before voters next year.
www.newsweek.com www.newsweek.com
 
It would be pretty tight for sure. Our house has increased in value 45% in the past 10 years and more than doubled in price for what we built it for.

It's valued at 800K, which, IMO, is way above what it's worth. Neighbors house just hit the market at 939K.

I would guess with a 20% down on my house, I'd be looking at 4500-5000 a month house payment with taxes and insurance.

This shit has to stop.
 
BuzzH said:
It would be pretty tight for sure. Our house has increased in value 45% in the past 10 years and more than doubled in price for what we built it for.

It's valued at 800K, which, IMO, is way above what it's worth. Neighbors house just hit the market at 939K.

I would guess with a 20% down on my house, I'd be looking at 4500-5000 a month house payment with taxes and insurance.

This shit has to stop.
Click to expand...
I can't even afford to downsize. mtmuley
 
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