Help me think through this massive expenditure... - Page 2

[laohaire]

Leaks are a major problem. If not addressed, they can have far-reaching consequences.

If the rain is coming in the house, I would definitely get the sills fixed too.

[HappyMommy2]

It seems like a big stretch for you. I would be a little nervous about using up the stock nest egg.

I am also a little leary of contractors that add things on to the job, like the windows. Definitely get more quotes! It will be good to know what others say about the windows... maybe they have more ideas. Leaks are a major problem. Also - remember all renovation job budgets should add something like 10-25% more for unforseen problems that crop up.

I agree you need insulation and heat, and personally would explore other options. What siding options are cheaper? Can you do this in smaller steps to spread the cost?

However - it seems like you really really want to do this. And so maybe you should listen to yourself! You know what you are willing to risk for it. For example, if you had to go back to work in a couple years because your financial situation changed, and you had a big loan and no nest egg, would that be ok?

[SleeplessMommy]

Originally Posted by cristeen

But at least he pinpointed for me the source of the water we get inside every time it rains... It runs down the window and the window directs it inside the wall behind he siding and then it has nowhere to go but inside the house.

the installers of those windows... what nuts!

Are you sure you need to re-side the entire house? It sounds like a very serious localized problem.

If the company that did the work is still in business, you can sue them, possibly. Did the home inspector pick up on that when you bought the house?

[Chamomile Girl]

Ok, I shouldn't be giving any advice here because I don't own a home (and never have). But I do LOVE historic homes and have lived in many.

Your house is at the heart of your family. If doing these renovations makes it safer and loads more comfortable then go for it. Not only that but you are investing in something that matters..not just to you but to the community. Every time someone fixes up an historical home it preserves a piece of the history of the community as a whole. Its one less house that will be eventually sold for the land and inhabited by ugly cheap condos. Its one more house that I can walk by and dream about owning in the future .

Not only that but because of where you live there is very little chance that investing in your home will ever be a bad investment. When real estate all over the country is tanking in SF and the East Bay prices have already rebounded...up 14% in the last year in SF with EB not far behind. Which is great for you (but sucks for me LOL!).

I think doing these upgrades/repairs will make a huge difference in your quality of life. How is having money socked away that you cannot touch more important than that?

[frugalmum]

I think it would be better for your money to be in the house instead of the stock market-- especially if you paid half what it is currently worth. Personally I would not max out a heloc. We own two properties and have used about $40,000 on a $150,000 credit line and just that is very stressful. Fingers crossed we will pay it off early next year with DH's bonus.

We live in a huge Victorian in a very cold climate. To keep our heating costs reasonable we have to keep the thermostat around 48-50F during winter and then selectively heat common areas during the day with space heaters. Even then it is usually around 60F in the space heater rooms. Yes it is chilly but surprisingly I got used to it. I am a BIG BIG baby when it comes to cold, but if you dress for the inside as though you were outside, 50-60F can feel quite cozy. I typically wear two shirts, a sweater, and a loose wool coat in the winter when I am in the non-space heater parts of the house.

I'm not suggesting you don't do the project, but it would be possible for you to tough it another winter or two with space heaters, even if you have to wear coats in the unheated parts of the house. This would give you time to save more money.

If the job definitely has to cost 60k I would try to save the 30K and cash out your stocks, not touching the HELOC. but that is just me!

[SunRise]

Definitely a big project!

I had insulation blown in my 1910 house last winter; The guy gave me separate quotes for each portion of the job. (sides, ceilings, overhangs, replacement windows etc) and then I had the option to pick the portions I wanted done at that time.

I just had the horizontal ceilings/floorings done (attic floor/bedroom ceilings, porch ceiling that was also part of my bedroom floor) and that has made a HUGE difference in heating. So much that I am not bothering with blowing in insulation in the walls (currently there is none). (for pricing purposes - to get my walls done, that cost 3x's more then the ceilings and overhangs)

SO if you are not up for the big job you described this year, I recommend getting a quote for blowing in insulation in the ceilings / floors.

Also, ask your guy to breakdown the quote for you so you have a better idea of what the project cost is (although the insulting part is probably minimal, compared to the overall part)

[cristeen]

So I heard back from him, and using cedar shakes instead of cement shingles really is no price difference. The cedar shakes would need more fireproofing under them, whereas the cement shingles are already fireproof. He also said that if we split it into 2 jobs instead of one (house for one, basement for the other), then we'd wind up paying about 30% more overall.

So I'm stuck. I think I'm going to call around and get some more quotes, though. The thing that really stinks is that this guy really knew his stuff, and I'm so leery of being ripped off by crap contractors (already happened twice) - that I'm tempted to pay the premium just to have someone who has proven to me that he knows what he's doing.

He also did warn me though that doing anything to the addition could cause problems with the city - so I'm going to have to look into getting it grandfathered in before we do anything. I don't want the city coming out and telling me we have to rip out the master bedroom because the previous owner didn't have permits when he built it.

SleeplessMommy - we had the windows installed a few years back. And ever since we've had a leak problem in the backroom - I never connected the two, I was thinking we had a roof problem since there was no visible water damage on the exterior. But he took one look at it and pointed the problem out with the water running inside the wall. Unfortunately the laws protect the contractors and not the homeowners, so it's not even worth pursuing at this point. If it had been more recent, I might have, but it's been at least 5 yrs.

Thank you for your thoughts on the matter, ladies. We're just going to have to hash it out.