Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-15-2022, 07:42 PM
 
5,969 posts, read 3,711,573 times
Reputation: 17019

Advertisements

Quote:
Originally Posted by lpranger467 View Post
I love your straightforward answer. The major issue now is we basically staked out this house and framed it ourselves, my wife is going to be so let down if we have to sell, I'm almost going to have to go nearly bankrupt before she agrees. The idea of being in this much debt on the otherhand is killing me (probably literally).

Hindsight is 20 20 I guess, wish we had just stayed in Philly. Folks atleast are much nicer here but this project seems like its never going to end.
It sounds like your biggest problem is your wife. I'm pretty sure that you know this but are just unable to handle the situation. My suggestion is to find some financial advisor (who isn't trying to sell you something) and explain you situation to him/her. If they're worth their salt, they'll conclude the obvious... that you're in over your head financially.

Of course, you already know that, but the point of going to the financial advisor is that once you and the advisor are on the same wavelength, then he/she can explain it to and attempt to convince your wife. Wifey is more likely to listen to and take advice from the financial advisor than from you.

Once the advisor has convinced your wife to at least go along with the program (even if she doesn't like it), then don't waste any time getting the house ready to sell. Too bad that you didn't seek advice here before plunking down 625 Big Ones ($$$$$$) buying the vacant lot.
Reply With Quote Quick reply to this message

 
Old 11-15-2022, 08:05 PM
 
Location: Sandy Eggo's North County
10,292 posts, read 6,818,131 times
Reputation: 16851
Is there decent medical services at this lake?

Sounds like you're gonna need it.

You sound stressed out. And you know what stress does to the human body (and mind...)
Reply With Quote Quick reply to this message
 
Old 11-15-2022, 10:22 PM
 
6,853 posts, read 4,850,706 times
Reputation: 26355
Plan on finishing the house. See if you feel differently when the building stress is over. It's not debt I would want to have in retirement. It obviously doesn't seem to bother your wife, tho. Why is that, do you know? Have you and your wife always had differing viewpoints on finances?
Reply With Quote Quick reply to this message
 
Old 11-16-2022, 02:29 AM
 
Location: NYC & Media PA
840 posts, read 692,356 times
Reputation: 796
We certainly have, she refers to our move as "failing up" as that due in large part with us framing that we will double the money we came into this with. My take on it is just that we're failing. Its great to double our money but at what expense ? this house forces me to work full time to pay (along with my pension) this huge mortgage.

She actually liked Philly (I didnt care for it) and I think she feels that if I moved her our of there that atleast were gonna live on a lake.

The lake is beautiful, but having to rob Peter to pay Paul is getting so old.

In fairness she did say we would weigh our options when we were at the 2 year mark (I told her for tax purposes we atleast had to hold for 2 years to avoid gains taxes)

Quote:
Originally Posted by E-Twist View Post
Plan on finishing the house. See if you feel differently when the building stress is over. It's not debt I would want to have in retirement. It obviously doesn't seem to bother your wife, tho. Why is that, do you know? Have you and your wife always had differing viewpoints on finances?
Reply With Quote Quick reply to this message
 
Old 11-16-2022, 06:45 AM
 
8,575 posts, read 12,398,483 times
Reputation: 16527
You and your wife primarily need to just figure out where you want to live. Your decisions should be based on that. I wouldn't count on the house appreciating faster than other real estate--or other investments--so I don't think that should be a major determinant. The value of the house could even go down, depending on the overall economy.

As I'm sure you realize, you should really pay off your credit card debt. Make that a priority. As for the house, once it's completed would you be willing to live there for a couple of years? Maybe that could be a compromise with your wife, but with an agreed-upon time to look elsewhere. If you would be in a position to make a profit on the sale of the house, the two-year period could also make your profit tax-free. The tax implications should be something that you should at least consider.

If the profit wouldn't be that much, that would make it easier to decide to sell sooner, if that's what you and your wife decide to do. Northern Michigan is nice, but it's not for everyone--especially in the winter. That's why a good number of people from northern Michigan choose to become "snowbirds" in their later years.

EDIT: Ha! I wrote my post before reading all of the other posts in the thread. I see that the 2-year window is already on your radar screen from your post above.
Reply With Quote Quick reply to this message
 
Old 11-16-2022, 06:52 AM
 
Location: Knoxville, TN
11,424 posts, read 5,967,061 times
Reputation: 22378
The OP wants an answer that satisfies his quality of life. Selling and moving back to the city.

The OP's wife wants an answer that maximizes net worth. She wants future appreciation from her lakefront home.

I would say that is a marriage issue, not a Real Estate issue.
Reply With Quote Quick reply to this message
 
Old 11-16-2022, 06:53 AM
 
11,175 posts, read 16,010,330 times
Reputation: 29925
Quote:
Originally Posted by lpranger467 View Post
We owe about $50,000 in credit cards/unsecured debt.

Income wise I bring in month $5000 pension, $3200 new job and wife does about $3500. New mortgage payment will be upwards of $4000 because of rates/lake taxes.
Let's forget the house for a minute. Am I reading this right? You have a monthly income of $11,700 ($140k/yr) and couldn't manage to pay your routine day-to-day bills so you built up $50k in credit card/unsecured debt?

That's what you should have addressed first with some of that $250k profit from your house sale. And then you borrowed another $150k from a bank on top of your $500k construction loan and still didn't address your credit card debt?

I'm almost afraid to ask how much you're paying in interest on that unsecured debt. As Chas863 recommended, you need to get to a financial advisor asap.
Reply With Quote Quick reply to this message
 
Old 11-16-2022, 07:05 AM
 
Location: NYC & Media PA
840 posts, read 692,356 times
Reputation: 796
Youve hit the nail on the head, I do think my best option will be to see how this year plays out (I'm 1 year into ownership, hopefully construction counts).

Sometimes I tend to make rash moves, I suppose I was looking to validate that my financial concerns were rational.

Quote:
Originally Posted by jackmichigan View Post
You and your wife primarily need to just figure out where you want to live. Your decisions should be based on that. I wouldn't count on the house appreciating faster than other real estate--or other investments--so I don't think that should be a major determinant. The value of the house could even go down, depending on the overall economy.

As I'm sure you realize, you should really pay off your credit card debt. Make that a priority. As for the house, once it's completed would you be willing to live there for a couple of years? Maybe that could be a compromise with your wife, but with an agreed-upon time to look elsewhere. If you would be in a position to make a profit on the sale of the house, the two-year period could also make your profit tax-free. The tax implications should be something that you should at least consider.

If the profit wouldn't be that much, that would make it easier to decide to sell sooner, if that's what you and your wife decide to do. Northern Michigan is nice, but it's not for everyone--especially in the winter. That's why a good number of people from northern Michigan choose to become "snowbirds" in their later years.

EDIT: Ha! I wrote my post before reading all of the other posts in the thread. I see that the 2-year window is already on your radar screen from your post above.
Reply With Quote Quick reply to this message
 
Old 11-16-2022, 07:14 AM
 
8,575 posts, read 12,398,483 times
Reputation: 16527
Quote:
Originally Posted by lpranger467 View Post
Youve hit the nail on the head, I do think my best option will be to see how this year plays out (I'm 1 year into ownership, hopefully construction counts).

Sometimes I tend to make rash moves, I suppose I was looking to validate that my financial concerns were rational.
One year counts towards your long-term capital gains, but it needs to be your primary residence for two years to exclude the profit from your capital gains (unless your move is job-related or a few other exceptions, none of which likely sounds applicable).
Reply With Quote Quick reply to this message
 
Old 11-16-2022, 07:18 AM
 
Location: NYC & Media PA
840 posts, read 692,356 times
Reputation: 796
Well in a funny twist,, because we have pets we have been living on the site in a camper for past year..any idea if this would count towards 2 year rule ?

Quote:
Originally Posted by jackmichigan View Post
One year counts towards your long-term capital gains, but it needs to be your primary residence for two years to exclude the profit from your taxable income (unless your move is job-related or a few other exceptions, none of which likely sounds applicable).
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top