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Old 12-05-2015, 12:41 PM
 
7,351 posts, read 4,427,372 times
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No matter how extremely frugal you become, the mortgage on your new house is what, 90% of your take home pay? It's not going to work. The outcome is inevitable. Talk to your parents now.
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Old 12-05-2015, 02:29 PM
 
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Quote:
Originally Posted by MaryleeII View Post
Selling a house takes money up front, especially if you no longer have rental income.


We own a house in Austin that is currently rented, and has been for the last 5 years, back when the market was cold. The lease expires in May, and we plan to put it on the market then. However, it will probably take at least 3 months, even in a hot market, for a house to list, sell and close. In the meantime we have to pay the mortgage, which is no longer covered by the rental income. That and utilities, you must keep the AC, lights, etc on to show, lawn maintenance will have to be hired out, it will be expensive!


Also, we will need to do some sprucing up, regardless of how good a condition the renters left it in. New paint, carpet, are basic minimums, along with some basic landscaping, etc. We figure we need at least 3 months of the house's expenses saved, or go negative. We spent the last year repairing our credit, and don't want to blow it now! Our kids are now living on their own, and dh and I live in a small apartment to keep expenses down. We're basically saving up to sell a house And that's in a hot market, with a lot of equity!


Don't think because someone owns a house worth x amount, they have that at their disposal

sounds like inequity.
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Old 12-05-2015, 02:51 PM
 
Location: Eastern Oregon
983 posts, read 696,285 times
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Quote:
Originally Posted by modhatter View Post
You need to read further. Most all threads (though start out sympathetic) end in the same manner, with helpful well meaning posters eventually getting fed up. Some even suggesting she should be banned from further posting. Not feeling thankful

There are posts by OP stating herself:
She is not financially needing.
She has taken her two kids on two week cruses
She flips houses for income
She owns two cars, one being a newer one.
As you already know, she has taken on two fixer upper homes with mortgages totaling nearly $500,000
with a $32,000-$35,000 income (it changes) with no savings.

Other posts.
She is on welfare, food stamps, and receives child support.
She and her friends go to bars at least 3 or 4 nights a month to drink and party. (but no money for heat or garbage)
Her focus seems to be on finding a new man to come in and save the day. However, She is not interested in a man unless he is into guns, cars and accepts her wild side.
She can't afford heat this winter because she can't afford a new stove Why is everything so expensive?
She can't move because of the kids, she can't move to apartment or condo because of all the animals. She can't handle snow and driveway, but won't consider alternatives.
Most recent: She can't afford her garbage bill.
On this tread, she can't cut cable because of kids, on a previous post last month, she states she does not have cable, so there is nothing to cut. So many different stories.

Do you really think all these suggestions are helping her, or ones she hasn't heard a thousand times before. I myself made at least a half a dozen to her, before eventually realizing something was wrong in Denmark.
Exactly! Her other threads are enlightening.

Incidentally, if someone is indeed wanting to live "frugally", I can't imagine why they would keep cable. That should be the first thing to go. It's way too expensive. Even if you can't get TV via antenna, you can still stream tv shows, check out videos from the library (free), or read (also free). Doesn't matter if the child wants cable - who is the parent here?????

I dropped off this thread a while back when I sensed what was happening. Moddhatter, you are right on with your observations. I don't know what is happening with the OP - perhaps some counseling would be in order? Psychological problems? I am not interested in wasting time on this thread, with this OP.
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Old 12-05-2015, 06:57 PM
 
300 posts, read 506,394 times
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I spent a couple of years trying to talk her out of buying in that neighborhood, long before the stalker ever made an appearance. A whole group of people tried to stop her because she can't afford it. Apparently the banks agreed since she had to have her parents finance the purchase. No other neighborhood was good enough, even though there are decent houses on acreage for half the price about 90 minutes west of her neighborhood.

At this point my recommendation is still to sell the house where she is living and repay the mortgage that her parents took on their home to pay for her home. The rental is breaking even so she can keep it or sell it; it is a bit of a risk but if she can keep a good tenant it may be beneficial.

I would still recommend to move west about an hour and find a job in the city nearby. Cost of living is much lower but she should be able to make a similar salary and family will still be within an easy visit on the weekends.
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Old 12-05-2015, 07:29 PM
 
9,454 posts, read 15,015,271 times
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Quote:
Originally Posted by freemkt View Post
sounds like inequity.


Actually we have abut 200K equity, just that it takes time and money to sell it. Real Estate is NOT a liquid investment.
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Old 12-05-2015, 07:37 PM
 
9,454 posts, read 15,015,271 times
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Quote:
Originally Posted by Gabbythecat View Post
Exactly! Her other threads are enlightening.

Incidentally, if someone is indeed wanting to live "frugally", I can't imagine why they would keep cable. That should be the first thing to go. It's way too expensive. Even if you can't get TV via antenna, you can still stream tv shows, check out videos from the library (free), or read (also free). Doesn't matter if the child wants cable - who is the parent here?????

I dropped off this thread a while back when I sensed what was happening. Moddhatter, you are right on with your observations. I don't know what is happening with the OP - perhaps some counseling would be in order? Psychological problems? I am not interested in wasting time on this thread, with this OP.


I haven't read the OP other threads, I just joined in here. You all appear to have valid points, I'm just comparing to my own situation. If the OP seems to reject well-intended advice, perhaps its because it just doesn't fit in her case? Like the suggestion to go to counseling----that in itself is an expense. With our insurance, one counseling session was $40 copay per visit. We were supposed to go to counseling when my DH was laid off---hardly useful advice And no, there isn't free counseling waiting out there. At best, you might get 1-3 sessions, but I digress. I certainly don't want to hijack this thread, just added my suggestions. Seems money is always a balancing act.
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Old 12-05-2015, 09:58 PM
 
2,421 posts, read 3,558,174 times
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Well, according to OP, she is in counseling and so are her children. Actually only one is a child, the second one is 16 or older, I believe.

All of her x boyfriends are bi-polar according to her. A previous stalker where she used to live , and now an attempted murder on her life from her son's father, but now merrily on his way to jail. Unfortunately, I got engrossed in the drama the other night. It was better than the current book I'm reading.

I do feel for her kids. If it were me, and my son's father tried to kill me, I certainly wouldn't be encouraging father involvement in my son't life. I'd want to put as much distance between them as I could. I'd want to get out of Dodge.

In spite all the drama and craziness, I wish her well, and hope if she is in fact getting counseling that it may eventually do some good, and she starts to look at her own actions as a cause and effect instead of blaming everyone else around her, and her bad luck.
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Old 12-05-2015, 10:30 PM
 
2,421 posts, read 3,558,174 times
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Quote:
Originally Posted by Celestyn View Post
I spent a couple of years trying to talk her out of buying in that neighborhood, long before the stalker ever made an appearance. A whole group of people tried to stop her because she can't afford it. Apparently the banks agreed since she had to have her parents finance the purchase. No other neighborhood was good enough, even though there are decent houses on acreage for half the price about 90 minutes west of her neighborhood.

At this point my recommendation is still to sell the house where she is living and repay the mortgage that her parents took on their home to pay for her home. The rental is breaking even so she can keep it or sell it; it is a bit of a risk but if she can keep a good tenant it may be beneficial.

I would still recommend to move west about an hour and find a job in the city nearby. Cost of living is much lower but she should be able to make a similar salary and family will still be within an easy visit on the weekends.
I don't claim to know the area like you do. It really would hinge on whether she could get another job paying similar to her current income. Usually lower cost of living comes with lower paying jobs. But according to her she has a skill set in bookkeeping and processing purchase orders and works for a large corporation That might be enough to get her a foot in the door in another company provided there were adequate job opportunities in a new area. I do know she certainly doesn't need a 5 bedroom, 2800 sq. ft. house on 2 1/2 acres with a 200 ft. long driveway. Certainly either a smaller home on a smaller lot or better yet a townhouse would be smarter in her situation. As I stated in another thread, I think her priorities are kind of backwards.

No doubt about it, single moms without higher income earning potential can be left in a bad place after divorce or a boyfriend splitting as in this case. With this being a two income society, losing one income can throw women in a near poverty status. Actually, I can say the same for men in some cases. They are not immune to the problem either. It is just that we see woman affected more because what they usually receive in child support hardly covers the outlay. Nor do men have the same set of problems facing women in trying to shuffle daycare with working. Very hard on woman. It is without a doubt, the biggest plight on society today.

Last edited by modhatter; 12-05-2015 at 10:38 PM..
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Old 12-05-2015, 11:09 PM
 
33,046 posts, read 20,714,185 times
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Quote:
Originally Posted by Petunia 100 View Post
No matter how extremely frugal you become, the mortgage on your new house is what, 90% of your take home pay? It's not going to work. The outcome is inevitable. Talk to your parents now.

What you do is rent out all available space, using the rental income to pay the mortgage.
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Old 12-06-2015, 05:00 AM
 
300 posts, read 506,394 times
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Quote:
Originally Posted by modhatter View Post
I don't claim to know the area like you do. It really would hinge on whether she could get another job paying similar to her current income. Usually lower cost of living comes with lower paying jobs. But according to her she has a skill set in bookkeeping and processing purchase orders and works for a large corporation That might be enough to get her a foot in the door in another company provided there were adequate job opportunities in a new area. I do know she certainly doesn't need a 5 bedroom, 2800 sq. ft. house on 2 1/2 acres with a 200 ft. long driveway. Certainly either a smaller home on a smaller lot or better yet a townhouse would be smarter in her situation. As I stated in another thread, I think her priorities are kind of backwards.

No doubt about it, single moms without higher income earning potential can be left in a bad place after divorce or a boyfriend splitting as in this case. With this being a two income society, losing one income can throw women in a near poverty status. Actually, I can say the same for men in some cases. They are not immune to the problem either. It is just that we see woman affected more because what they usually receive in child support hardly covers the outlay. Nor do men have the same set of problems facing women in trying to shuffle daycare with working. Very hard on woman. It is without a doubt, the biggest plight on society today.
I agree she is in a bad place right now and I do wish her the best. I know that changing location is very difficult, especially if you are in a tight financial situation. Moving costs money and sometimes the people that need the move the most have the fewest resources to fund it. There is also a potential problem with custody orders, which could limit her freedom to leave the area.

I am just recommending it in her case because I am familiar with the area and it is a short enough distance that it becomes feasible to find the job first and then move second. If a job can't be found to make life comfortable in the new area then nothing has been lost because the move hasn't been started.
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