Question House vs Apt
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| Tue, 09-13-2005 - 10:20am |
Ok, right now we live in a house. We have been here for 5 yrs, and our house has appreciated less than 10,000. Our real estate market in MI has not rebounded from 9/11. There are ton's of houses for sale in our community, but they are not selling. I have been trying to convince DH to sell the house and move into an apt for one or two years. Closer to DD school, and in a much better neighborhood. I figured we will be able to pay down some of our 50,000 debt with the money we saved on insurance, utilites, apt rent. Right now with taxes, insurance and our house payment the paymens is 1200 a month. I have found a three bedroom, 1200 sq foot apt for about 700.00. Our house is only 1082 ft, so this is even bigger.
Here's my question...Is this a good idea? I know your home is your most valuable asset. We have NO equity in our home, and I feel like we are just sinking.
TIA!!!
Martha

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We couldn't even refinance because the loan would have been more than the house was worth. Well, as of this week, we are filing bankrupsy. Just to get rid of this house.
We are going to move to an apartment. Our monthly mortgage payments are a little more than yours. We also live in Michigan. I am relieved in a way, but I feel bad making
my daughter move to an apartment. They are nice apartments, larger than our house.
But this won't be easy. You have to decide for yourself which way to go. I am excited
at the thought of having extra money after we move to have fun once in a while, Instead
of constantly worrying month to month how to pay our mortgage. It IS worth considering. Talk it over seriously with your family. If everyone decides that it makes sense to move
to an apartment, it dosen't have to be forever. Just for a couple years.
I hope everything goes well for you, whatever you decide.
Hi Martha--
I haven't read the other responses, but I have lived in an apt. for 7 years, and while my oldest was 8 when we moved here, I have since given birth to two more...
I would KILL for a backyard for my kids. We are in a 3Bd/2.5 bath apt, with two stories and no one under us. I am in So CA, and we have central a/c and heating, which is rare in apts (most have window a/c and wall unit heating). That's the upside. But we are surrounded by neighbors on both sides, so when DS shows us that he is in the terrible twos, it's nerve-wracking. I keep waiting for someone to call the cops! Also some of the pluses of apt living: No yard upkeep costs; water is paid for; if something happens to the plumbing or something, it doesn't come out of my pocket to get it repaired.
Downside, neighbors can hear everything. Each and every tantrum. We have no yard for the kids to play in, and spend $1425 a month on a place that we really hate to live, but our credit is shot and houses in the city/county that we live in are going for $650k, and I'm talking shoebox houses!! More downside, I would love to have a fourth bedroom since the age diff between DDs is 12 years, and she can't share a room with DS forever. Renting a house out here in CA ususally requires a credit check, so even if I borrowed the downpayment for costs from family, there is no way anyone would rent to us anytime soon with our credit in fairly bad shape.
You are best doing what you feel is right for you, but if I had a house, I would do what I could to keep it. Your appreciation value may be low, but you own the house and have equity if necessary. I am praying that the "housing bubble" bursts sometime soon so maybe we can get something in forclosure at a reasonable price. At the most, I am hoping that someone in my family will get the word out that we need to rent a house, and they might know someone that is willing to give us a chance!
Best wishes--
Kathy
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