Which Is Less Bad?

[aaronc879]

Your bad decision to not diversify your house sale proceeds and put it into a gamble is unfortunate and shows the bad side of non-diversification for other readers.

I agree diversification is the better option. One week after I bought the stock it was up about 15%. A week after that the company made an unexplainable decision to cut the dividend by 60% which sent the stock plummeting by 40%. The EPS is much more than needed to cover the dividend before the cut so there was no reason to cut the dividend by any amount let alone 60%. That being said, it was a risk and it didn't pay off.

 

[Dash man]

A lot of people have given you things to think about. If I were in your situation I'd dump the stock to buy the house, take the tax loss, and reevaluate your future investments.


Enjoying life!

 

[Bestwifeever]

Weren't you expecting to take over your parents' home in the near future because of your father's disability? Is the housing market strong where you are, in case you have second thoughts about the house you now want to buy and want to sell it?

 

[aaronc879]

Weren't you expecting to take over your parents' home in the near future because of your father's disability? Is the housing market strong where you are, in case you have second thoughts about the house you now want to buy and want to sell it?

If my Dad needs to go to the VA hospital my Mom will probably still stay in the house rather than share a small room with my Dad. My mom will likely live for at least a couple more decades.

The housing market isn't as volatile around here as most places. During the recession values only went down maybe 10% and are now up and climbing slowly. With my 20% down payment there is almost no chance i'll have to worry about ever being underwater with the mortgage.

 

[highlow65]

Either choice will work for you and if you really love that stock that much Runningbums option seems fine. My only point is that stock is only worth the going rate, it may go up and it may go down,its worth whats its worth not what you think it may be worth. If this is your "perfect" house and you have many years of happiness in it then do it.

 

[eytonxav]

Two points of wisdom with respect to investing come to mind: you can't be afraid to take a profit, and you can't be afraid to take a loss. Not sure of the tax ramifications, but maybe just pick your poison or if your gut doesn't tell you one or the other, maybe do some of each.

 

[Bestwifeever]

If my Dad needs to go to the VA hospital my Mom will probably still stay in the house rather than share a small room with my Dad. My mom will likely live for at least a couple more decades.

The housing market isn't as volatile around here as most places. During the recession values only went down maybe 10% and are now up and climbing slowly. With my 20% down payment there is almost no chance i'll have to worry about ever being underwater with the mortgage.

Ah, I get it. Hope you don't mind all of us giving you advice!

 

[aaronc879]

Ah, I get it. Hope you don't mind all of us giving you advice!

Don't mind at all. As long as you don't mind if I don't follow it.

I value all opinions even if I don't agree.

 

[Amethyst]

Aaron...I know how much the noisy neighbors bother you. Are you sure you'll not run into another nuisance with house neighbors? Home ownership is so darned risky, especially since you are on the road a lot. I am hoping for quieter digs for you, and
maybe the others are right in advising you to take another look at a rental...house.

 

[aaronc879]

Aaron...I know how much the noisy neighbors bother you. Are you sure you'll not run into another nuisance with house neighbors? Home ownership is so darned risky, especially since you are on the road a lot. I am hoping for quieter digs for you, and
maybe the others are right in advising you to take another look at a rental...house.

One of the main things I was looking for in a house is a finished room in the basement. This house has a new finished room in the basement. It's not officially a bedroom because there's no egress but that's a good thing to me because there's no way for noise to get in. i will have a bedroom upstairs and in the basement. I have spoken to several neighbors to see who lives near me and all have said it's quiet. I seems like it should be quiet. If it's loud, I go to the basement. It's a full basement high enough for me to stand straight up(6'6") so not a problem at all going down there.

 

[haha]

Like you said, you'll do what you please, which is the smart approach.

So, do what you please, and may the gods smile on you.

Ha

 

[Amethyst]

Oh, good. You are very logical and I figured you'd have thought that all the way through. Hoping it works out for you - let us know if/when you buy!

One of the main things I was looking for in a house is a finished room in the basement. This house has a new finished room in the basement. It's not officially a bedroom because there's no egress but that's a good thing to me because there's no way for noise to get in. i will have a bedroom upstairs and in the basement. I have spoken to several neighbors to see who lives near me and all have said it's quiet. I seems like it should be quiet. If it's loud, I go to the basement. It's a full basement high enough for me to stand straight up(6'6") so not a problem at all going down there.

 

[aaronc879]

Oh, good. You are very logical and I figured you'd have thought that all the way through. Hoping it works out for you - let us know if/when you buy!

I just realized I never updated this thread. I closed on the house on Oct 15th and all has been good since then. I funded the down payment/closing costs by selling part of my position in that stock. My expenses will be higher than i'm used to but should still stay at or under $20K/yr unless I do significant work on the house. This will be an expensive winter for heat. The house needs attic insulation and other weather proofing which I didn't get to and now won't be able to get to until spring. All things considered I am and should continue to be much happier in this house than when I shared walls with others.

 

[braumeister]

This will be an expensive winter for heat. The house needs attic insulation and other weather proofing which I didn't get to and now won't be able to get to until spring.

Until you can get around to that, you might consider plastic sheeting over windows (on the inside). Some people think this is tacky, but it does work.

https://www.energystar.gov/index.cfm?c=home_sealing.hm_improvement_applying_plastic

 

[aaronc879]

Until you can get around to that, you might consider plastic sheeting over windows (on the inside). Some people think this is tacky, but it does work.

https://www.energystar.gov/index.cfm?c=home_sealing.hm_improvement_applying_plastic

I did that last winter when I was in my condo but the windows in the house are all new so shouldn't be necessary. The problem is lack of attic insulation(4-5 inches instead of 15-ish) and poorly insulated basement. Also the door going from house to attached garage needs weather stripping at least. I may need a different door in that location. I can't afford to do everything at once so it'll just have to be a little at a time.

 

[ivinsfan]

So don't forget to check out any low income heating assistance and insulting assistance that might be available to you.

 

[aaronc879]

So don't forget to check out any low income heating assistance and insulting assistance that might be available to you.

Unfortunately my low income heating assistance is based off of last winters costs which were far less than this years will be. I will get a little over $100 total for the winter. That won't even cover heat for Dec. but every little bit helps. I will apply for assistance with insulation costs after I get my taxes done in March. From what i've seen I should be able to get at least $200 off so that's not nothing.

 

[NW-Bound]

...insulting assistance...

Is it to add insult to injury, to rub salt into one's wound?

 

[tmm99]

I just realized I never updated this thread. I closed on the house on Oct 15th and all has been good since then.

Congratulations, Aaron!

 

[W2R]

I just realized I never updated this thread. I closed on the house on Oct 15th and all has been good since then. I funded the down payment/closing costs by selling part of my position in that stock. My expenses will be higher than i'm used to but should still stay at or under $20K/yr unless I do significant work on the house. This will be an expensive winter for heat. The house needs attic insulation and other weather proofing which I didn't get to and now won't be able to get to until spring. All things considered I am and should continue to be much happier in this house than when I shared walls with others.

Congratulations, Aaron! I am so happy for you. You know more about heating a house than I do so I won't offer any advice on that. If it makes you feel any better, my AC completely cratered a year after I bought my Dream Home. I knew from the inspection that it would be needed soon, but gee, the very next summer? Oh well, seems like that sort of thing always happens to me with a new house and at least I won't need any more AC work for a long time.

Really, I think that not having anyone on the other side of your walls will make all of this worthwhile. For those of us who love peace and quiet, a quiet home is just about priceless.

 

[Amethyst]

Good for you. Here's to privacy, peace & quiet!

You're smart to be thinking about preventive maintenance, weatherproofing, etc. When I bought my first house, I had not a clue (and it was an old house too!) I think you said it's a new house, so you should be good for quite a while.

Amethyst

I just realized I never updated this thread. I closed on the house on Oct 15th and all has been good since then. I funded the down payment/closing costs by selling part of my position in that stock. My expenses will be higher than i'm used to but should still stay at or under $20K/yr unless I do significant work on the house. This will be an expensive winter for heat. The house needs attic insulation and other weather proofing which I didn't get to and now won't be able to get to until spring. All things considered I am and should continue to be much happier in this house than when I shared walls with others.

 

[aaronc879]

Good for you. Here's to privacy, peace & quiet!

You're smart to be thinking about preventive maintenance, weatherproofing, etc. When I bought my first house, I had not a clue (and it was an old house too!) I think you said it's a new house, so you should be good for quite a while.

Amethyst

Thank you.

It's not a new house but it's a heavily remodeled house. The only real problem is it has 4 inches of attic insulation when it should have about 14 inches. It is nice to get a house that already has (almost) everything done. I should have pretty minimal maintenance for the next decade.