Trying to avoid the "house jones"

[brewer12345]

What? I thought you were going to retire or semi-retire.

Thatwould be nice, but I am not there yet $-wise. Two small children tend to increase your portfolio requirements. If I were single, would be retired and living a very frugal existence already.

 

[rs0460a]

friends who just bought a place larger than ours

You need to get other "friends" ...

- Ron

 

[BunsGettingFirm]

Yes, I have thought often of just going back, renting one of the cool little bungalows downtown and just be the best cycling maniac I could be. Very attractive idea.

 

[Texas Proud]

I am actually in the process of trying to upgrade.... put in a bid a few months ago at about 15% lower than what the distressed prices are going... but the guy filed for bankruptcy prior to us getting a deal...

NOW, I wait and wait and wait... they were going to do a short sell at my price because nobody else is stepping up and they would rather sell it than keep it afloat... but he would not sign... now months later.. he would, but his wife will not.... so I wait some more...

Eventually they will foreclose and I think I will pick it up at about $20 to $30K less than the going rate......

Now, I do need a bit bigger house because of a bigger family and also wanting to get out of my neighborhood.... it is starting to go downhill... better to get out now... but for me... I have a paid off house, so will not have two mortgages...

My thought, for what it is worth... it is only worth it if you will feel better in the new house as opposed to the old one... all things considered (including taxes).... to me it sounds like a 'no' for you...

 

[Walt34]

Shouldn't that be: "Never buy a house that has more rooms than you want the maids to clean." ?

Yes it should be, but maid service is terrible lately.

 

[rs0460a]

I do need a bit bigger house because of a bigger family and also wanting to get out of my neighborhood.... it is starting to go downhill...

Sounds like a "need" rather than just a "want". In that case, it makes sense ..

- Ron

 

[FinanceDude]

Heck, my cycling team was sponsored by Fat Tire.

I love that beer!!! It was my sister's favorite, so we served it at her celebration of life event.......

Plus, she had a lot of buddies in the USCF, so she got out to CO all the time.........

 

[Bestwifeever]

Snap out of it....

Although the realtors/housing industry are waiting for that one person to start the house-buying chain reaction--is it Brewer who could save the industry?

 

[Kronk]

DW and I occassionally think it'd be nice to move into a "better" house. The current house is paid off, but there are many things that we don't really like about it. Of course, I'm sure it'd be cheaper to put in that $40,000 kitchen than it would be to move...

 

[laurence]

I battle this every 18 months. It just takes running the numbers to snap me out of it, especially the one where it potentially delays retirement.

 

[brewer12345]

I battle this every 18 months. It just takes running the numbers to snap me out of it, especially the one where it potentially delays retirement.

The way the markets have been lately, won't be retiring any time soon anyway. But I agree, running the numbers helps a lot. Right up until I trip over a pile of toys in the living room.

 

[samclem]

Maybe try scratching your itch to bottom-fish by buying some obscure beat-down REIT that you hunt around for? (Milton--I ended that sentence with a preposition and am proud of it. Sue me.) Or, at worst, find an honest investor who wants to buy income property with you, he'll do the management and fix-up.

While neither would give you more sq ft to live in, they'd both let you actually profit from a turnaround in the market without having to move (twice), carry two notes, pay the horrendous property taxes, etc.

 

[Gearhead Jim]

Trends, both upward and downward, tend to go longer and further than we expect. The house bubble went up for a long time and a long way, so now...

 

[Darryl]

Brewer the grand a month for the taxes made me pucker. I've been reading your stuff long enough to believe your motto there would be "H$ll No I won't pay!!

Yeah, last year the much larger house across the street was offered by a megacorp for about what I thought mine was worth. It definitely had my attention for a few days. Unfortunately mine isn't worth what I was thinking but like your situation not off as much as the one I was looking at. No dislocation for the kids, only moving 80 yards, but realtor fee's etc. etc. all for the privilege of a bigger mortgage is just the opposite of the direction we are trying to go.

 

[Midpack]

I have a modest house now, and my next one will be smaller but nicer. Large houses don't appeal to me at all, not only the taxes but the utility costs can only get worse. A larger house makes as much sense as a new Hummer-Excursion-Surburban IMO. And I don't want wealthy neighbors - 'the richer your friends, the more it will cost you.' Fortunately we're all wired differently, good luck with your decision...

 

[W2R]

The way the markets have been lately, won't be retiring any time soon anyway. But I agree, running the numbers helps a lot. Right up until I trip over a pile of toys in the living room.

Kids grow older FAST and pretty soon they won't leave toys on the living room floor. Eventually they won't come out of their bedrooms except to eat, borrow the car, and/or go to the mall with their friends to get something or other pierced.

 

[Buckeye]

Here's how you can snap out of it....Start making monthly "payments" equal to your current payment plus the PITI on the "new" house. Of course, the "new house" payment will go into your savings account. Do that for about 8 months to simulate having two mortgages while your house is selling. If that doesn't cure you, keep making the "new house" PITI payments a little longer until you snap to.

 

[Darryl]

Buckeye what does the last I stand for in Pain in the I you mention?

 

[W2R]

Buckeye what does the last I stand for in Pain in the I you mention?

I'm not Buckeye, but Principal, Interest, Taxes, Insurance (I think)

Almost, but not quite the same as PITA...

 

[Gone4Good]

I personally opted for the smaller house / earlier retirement option. In part, that was a matter of luck. We got out bid on a bigger place a couple of years ago and I'm pretty happy we did. It's really easy to upgrade your lifestyle, it's very hard to go the other way. The bigger house would have meant several more years before we reached the level of financial independence we want and, in the end, FI is our goal . . . not more, or even nicer, stuff.

I've heard it said that the things you own end up owning you. It seems that is never more true then with real estate. Most of my friends have houses that cost 4x-5x what we paid for ours. They're very nice places, and I'm very happy for them. But after I visit I can't help but think how glad I am not to be shackled to their lifestyle.

 

[W2R]

I personally opted for the smaller house / earlier retirement option. In part, that was a matter of luck. We got out bid on a bigger place a couple of years ago and I'm pretty happy we did. It's really easy to upgrade your lifestyle, it's very hard to go the other way. The bigger house would have meant several more years before we reached the level of financial independence we want and, in the end, FI is our goal . . . not more, or even nicer, stuff.

I've heard it said that the things you own end up owning you. It seems that is never more true then with real estate. Most of my friends have houses that cost 4x-5x what we paid for ours. They're very nice places, and I'm very happy for them. But after I visit I can't help but think how glad I am not to be shackled to their lifestyle.

That's so true. It turns out that I can afford a very big house if I want one in the low cost area where I plan to ER. So, I have been thinking and imagining different types of houses and lifestyles.

I love the big old Victorians with all the gingerbread and architectural detail, but I'm just not wanting to do that much renovation and just the updating of electricity alone could be ghastly. I really don't want to spend the rest of my life maintaining (or arranging for the maintenance of) a new McMansion. I don't want to live the yuppie lifestyle, which to me means hinging my self-worth on what other people think about the collection of things that I own.

A simple lifestyle in a home of moderate size sounds much more appealing to me than living in a huge home. Lately I've even been wondering about a smallish condo, since I never use my yard.

 

[RockOn]

Kids grow older FAST and pretty soon they won't leave toys on the living room floor. Eventually they won't come out of their bedrooms except to eat, borrow the car, and/or go to the mall with their friends to get something or other pierced.

That is so true. They are grown and on the way out before you know it.
I added a pool and thought they would enjoy it for years. It seems they barely had time to use it and are now off to college. I wouldn't base my decisions on thinking long term about the kids.

 

[Rambler]

That is so true. They are grown and on the way out before you know it.
I added a pool and thought they would enjoy it for years. It seems they barely had time to use it and are now off to college. I wouldn't base my decisions on thinking long term about the kids.

We built much bigger than we needed - for the future grandkids - and the pool for the kids, who hardly have a chance to use it before flying the coop. If I had it to do over, everything would be smaller...love the place, but woulda, shoulda dunnit smaller.

R

 

[kcowan]

DW and I both became minimalists when we left our former marriages. Left nearly everything behind and started with a view to avoiding accumulating "stuff".

 

[HFWR]

Yes, I have thought often of just going back, renting one of the cool little bungalows downtown and just be the best cycling maniac I could be. Very attractive idea.

I battle this every 18 months. It just takes running the numbers to snap me out of it, especially the one where it potentially delays retirement.

I personally opted for the smaller house / earlier retirement option. In part, that was a matter of luck. We got out bid on a bigger place a couple of years ago and I'm pretty happy we did. It's really easy to upgrade your lifestyle, it's very hard to go the other way. The bigger house would have meant several more years before we reached the level of financial independence we want and, in the end, FI is our goal . . . not more, or even nicer, stuff.

I've heard it said that the things you own end up owning you. It seems that is never more true then with real estate. Most of my friends have houses that cost 4x-5x what we paid for ours. They're very nice places, and I'm very happy for them. But after I visit I can't help but think how glad I am not to be shackled to their lifestyle.

DW and I both became minimalists when we left our former marriages. Left nearly everything behind and started with a view to avoiding accumulating "stuff".

I detect a trend here...

What they said. My primary focus is to get to the FIRE state. Of course, my kid is grown, and no DW. All you need is love! And 4%...