Help Having home ownership lust (UPDATE PICTURES!!)

Warning crabby home owner rant.

Houses on our street sell for 100,000 more than we paid. Ours had been rented for 10 years prior to us buying it and we thought great, our little fixer upper to love and make our own.

Well two years later the thing is a blood sucker (or money sucker) we just keep poor (pour)ing money into it and something always needs to be fixed. We have been in bathroom remodeling h#ll since December because we are doing the work ourselves, sure we are saving thousands but it's major work, then the sliding glass door breaks, and whamo, more money we don't have...... Dh and I (when I'm not keeping the kids away from broken glass) have been working the whole weekend. It's never ending, when we bought the house we joked it wouldn't be done until the kids were in college, well sadly I think that is true

Ok rant over, even our pit has gone up in value and heck we have to live somewhere, we have a very affordable mortgage, renting a 2 bedroom would cost us more than our whole house, so yeah, even though I'm frustrated it is worth it.

Houses are a money pit, and the mortgage interest deduction usually ends up being trivial. Think about it this way: the bank owns the house, not you, and you will end up paying at least 3x the price you paid for the house once you add the interest. You are responsible for taxes, insurance, and all repairs. If it's a fixer-upper and you haven't had it inspected by a certified inspector or had a couple of contractors take a look at it (there may be a very good reason why this house hasn't sold) then you have no idea what might be wrong with it.

As a renter you pay your rent, and someone else takes care of all the other details. You might feel like you're 'throwing money away,' but actually you throw a whole heck of a lot of money away on mortgage payments too (like almost 100% of them in the first few years) because it all goes to interest.

And depending where you are (say on the East or West coasts), the housing market is still quite overpriced. If I were you I would just sit tight for a couple of years and see how much things go down. If you buy now, there's a pretty decent chance your house will be worth less in a couple of years because of the market being so overpriced. That means that if you have to sell for financial reasons you might not be able to get the money back you put into the place (keeping that interest payment in mind along with whatever you spent on repairs/upkeep).

How's that for discouragement?

discouragement?
lol I am in Canada we don't get to deduct mortgage interest...

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We've done all that (mom's side are contractors, carpenters, neighbour and dh other wife Dan is an architect)

The house hasn't sold as well it needs too much for most people. It kinda scores a zero in most areas people look for, some people don't mind remodelling a kitchen or sprucing up the outside but...

1. Its a historic home heavily protected, and under strict historic home desingation....so anything you want to do you have to get approval for. My dh passion is history and loves every bit about researching appropriate tiles etc. As the person when they filled in the paper work protected everything which is fine for us as dh loves that appropriate history stuff, but you couldn't build a garage, change the windows to modern ones (all stained glass), basically everything that is orginal can't be messed with or changed, if you need to fix it has to be the same... well plain black roofing shingles are cheap, period stuff not so cheap never mind getting approvals, waits etc. (*there is money for that about 1/2 the cost is covered but most people today want thermal windows, to build a garage, paint it a colour they might like you know, crap even the stones in the front are protected so you are limited in landscaping that)

2. Its got old and ugly stuff - the kitchen is original, it has 1960's old green bathrooms, a few broken windows (antique stained glass not easy to replace)
Pink walpaper.... the woman who owns it needs a psychiatrist...you have NEVER seen so much clutter in your life, from first to second showing she got movers in to clear it out as well it was wall to wall in some areas. (* and of course the homeowner thought that 3 sets of couches... 9 couches loveseats and armchairs....were not too much for one 15x15 room.... lace everywhere...it was like someone projectile vomited pink, lace and crappy old psuedo antiques....

3. There are some construction type issues, it needs new stairs going up to the door, we had it all done and broke it out between must do's like new roof shingles, a whole house paint job, to must do to resell (new kitchens) and we can live with it for now.

basically enough things for anyone not able to pull construction people for a fair price or pizza and beer to walk away. Its also overpriced for the market in its state, and a bit of a odd house 5+ bedrooms. But I grew up in the area so I know it wouldn't dip much below where it is, if it were fixed up it would go for much more. But its almost too much work but not enough. Its no where near a full gut remodel, but its not a few simple things...

But can I tell you its gorgeous?
Purely freaking gorgeous.
The house loves us and I know it wants us....but will I still love it later?
Like I said it has 5 bedrooms, 3 bathrooms, a space for everything (lol except a garage that would fit my truck sigh..... its an arts and crafts which for most of ya'll Americans (my sister is in san fran) you have them a dime a dozen....but up here this one is pretty special the guy moved back from California in 1912 with the plans...

Sigh......
Dh is stressing the obvious, longer commute...etc...but.....
its spring I want a garden and some projects...I feel so bored.
I am 32 and we have no roots...

we did bid low 4 months ago at 242 they rejected it
I guess we can go in at 243....lol but hey they need to sell they aren't living in it and I figure April is tax time and in this market there's a little overpay anyhow but I'd rather pay a bit for a five bedroom than a three prices being equal....

dh said he was thinking about looking at our old offer, I am going to call my mom's boyfriend he's a broker and ask him what we should do....as far as negotiations go.

I say go for it. I know that you end up paying about 3x what you take out a loan for because of interest, then there are fixes, maitnance, etc..... but if you want to own a home again then do it. One of my ways of doing it and it making sense is that I think of locking in a rent amount for the next 30 years, which is essentially what I am doing. So, if it costs your current rent amount, what do you think you rent is going to be like 20 years from now? 30 years from now? I have had some less than positive experiences renting, but have loved every minute of home ownership so to me it is just a priority.

For me, owning ends up being cheaper. There is no way I could rent a place big enough for my family and my business that would cost us less than our mortgage, even if our mortgage is a stretch for us to make. Besides that, in 5 years if we decide to up and move to a new location, we can sell it and at least break even (well, maybe not quite with all the interest we will pay over the next 5 years.... but it would be equal to very, very cheap rent for those 5 years)

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actually probably not its all board, mostly unpainted wood, and the drywall (the plasterboard) is all wallpaper aka we'll be painting over it or ripping out the whole plasterboard that's inbetween the wood panels.

Since the upstairs was a plain attic its relatively new (from the look of the nasty yellow pine and being that its still a very light ugly yellow its probably within the last 12 years when the last reno was done. It has no real insulation so no asbestos issues other than on the boiler which is small 2 foot section and contained. And no linoleum. I'd still want to redo the drinking water pipes anyhow. Most of the outside wood is natural its that craftsman style... and the roof is newer 12 years ago so no asbestos there either..

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Yeah well its all up to the financial wiz, we have to get the mortgage qualifying paper again... then get it all rolling. I know its a big deal but I figure with 5 bedrooms I could rent a room out to help pay for it

And try to educate dh that although he thinks he can do roofing....I am not wiping his ass when he breaks both arms falling off it!

Thought you girls might like some pictures...

http://www.privaterealestate.ca/Details.php?ID=1193

keep in mind that this is from their (hopefully old) attempt to sell it privately but it still is listed with the realtor..

also before you start laughing hysterically at the lace, pink... keep in mind

THIS HOUSE IS PROFESSIONALLY STAGED!
no kidding, the homeowner thinks the house is high victorian...and well thought she was an interior decorator so she from the realtors comments didnt' allow much change...

you should have seen the pink lace vomit before.
I know its hard to imagine more clutter, more curtains, swags, more fake flowers, more stenciling, more furniture...(and that is not your eyes she painted the other trim PINK... PINK...oh my...and half the wallpaper and borders are gone now....)
but times what you see by 3...and no they are not 70...they are like late 30's early 40's...with kids at home...

I live in a 130yo Victorian farmhouse that was in far worse shape than what you're dealing with there. I also serve on the local Historic Preservation Commission here in town--the board our historic homeowners have to go before to make changes to their house.

If you love it, buy it--but just make sure you don't overpay. It sounds like that's really where your issue is. Clearly, you want to buy it. I can't argue with your dh's concern about commute because what good is having a place to enjoy if you're not there TO enjoy it... kwim?

Lead paint is not the end of the world. BTDT and only found out when they tested my son's blood because he had anemia (which CAN go hand-in-hand w/lead poisoning). The fact that the mouldings are wood doesn't mean you won't have lead paint in there. It will be under the wallpaper, too (like ours was!). But it's just an extra level of care when you're working in the house. Honestly, if you're not ripping down the walls, you could even paint over the lead paint with latex to "encapsulate" it. You'd just need a test to be sure the lead content is low enough that encapsulating will be enough.

If you're planning a kitchen or bath remodel in that house, I would SERIOUSLY consider going to sit through some of the approval board's meetings to see what they will/won't allow in the way of this stuff. Often, a board won't allow you to do anything other than replace EXACTLY what is there--configuration and all--with new materials that look exactly like what is already there. Hate those green tiles? Sorry--you might be stuck with them. Our board offers an "informational hearing" where you're not applying to DO the work, you're finding out what you COULD do so that you can go back and figure out what you want knowing what will pass the board...kwim? This will require photographs that you don't have right now. Photos of every last thing you would want to change. You can get those from getting into the house again and just taking photos.

Seriously sit down and go over everything on your lists (the musts for you & those for resale) and decide HOW you would really want it done. Price that out. Then go see if the local board will chat with you about it. You might find that the things they'll allow make it a place you can't deal with.

Good luck! It's beautiful!

The house is truly haunting me! I think the house loves us...

The fact that the mouldings are wood doesn't mean you won't have lead paint in there. It will be under the wallpaper, too (like ours was!).
=Since I'd want to insulate better I am thinking we'll just rip the plasterboard type material they used out...its that weird 'light' and textured drywall/dryboard or like you said just put a few layers of paint over it.

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If you're planning a kitchen or bath remodel in that house, I would SERIOUSLY consider going to sit through some of the approval board's meetings to see what they will/won't allow in the way of this stuff. Often, a board won't allow you to do anything other than replace EXACTLY what is there--configuration and all--with new materials that look exactly like what is already there. Hate those green tiles? Sorry--you might be stuck with them.

lol actually I dont' mind the green bathroom and green fixtures - its the purple and pink walpaper that makes it look ugly.

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Seriously sit down and go over everything on your lists (the musts for you & those for resale) and decide HOW you would really want it done. Price that out. Then go see if the local board will chat with you about it. You might find that the things they'll allow make it a place you can't deal with.

Totally I want to make sure we include everything in the mortgage that would not leave us in the position where the house would take over a year to sell. The historic society also gives out grants which will help for work they approve of, it will take some schedualling and salesmanship but hey its 'free' money.....lol nothing is free

For me I'd make sure the systems are up, the roof, landscaping is done, the pink is gone

and the kitchen is functional (lucky the kitchen is more of a butler's pantry type they may make us keep it but I'd like to move the kitchen to a different room across from the dining anyhow....

poor dh he's got a cold and I am harassing him about the house again

Good luck! It's beautiful!

Click to expand...

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What's the worst that can happen? You end up stuck living in a house you love? Try to think of the worst and if you can stomach it go ahead and make another offer.

I have nothing constructive to add.
Only: it's beautiful! (could she FIT more furniture in there?)
and: I'm jealous!