Not able to build our house now.....
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| Wed, 11-09-2005 - 5:01pm |
Hello,
For those of you who don't know or remember my story~ DH and I have been aggressively paying off our debts for a few years now so we could build a new home on property his parents are giving us. It was approx. $20K in credit cards and personal loans. We also have 2 student loans ($9K) and an SUV loan ($12K) We finally paid off the cc and personal loans in May. We have been saving for the house for 6 months so far and started looking into contractors. It seemed like we would be able to do it until:
#1. I talked to banks and they said I couldn't use my tips from waitressing because I don't claim all of them. (We all legally claim minimum wage at my job for tips) But duh, I never thought of that and that is what makes up a lot of our income!!! So now we won't qualify for a large enough loan to cover everything unless we pay off our SUV with the proceeds from our current home ($10K or so.) But then our monthly payment would be higher without a big enough down payment!
#2. Our property taxes are estimated at $6k-$7K per year just because it would be a brand new home. Our current home's taxes are $1200 per year. Yikes!
#3. They were supposed to put sewage through that area, but it looks like they won't have enough funding. That means we would have to put a $15K septic tank in.
#4. The fees/closing costs the banks charge are approx. $15K on constuction loans!!!!
#5. It seems like the contractors leave prices out to get you so excited for a house that you won't care if it costs more! On the phone they said excavation was included, then once you get a price it states it isn't included!! Or when you call and ask the price of a home they give you a lower price to bring you in and then blame it on someone else that gave you the "wrong" price on the phone!!! I was like "It was YOU who told me that price!!!" Plus the prices just jumped up because of the hurricanes.
We were so excited about building a home, but it has turned into such aggrevation and will be so expensive in the long run that we are washing our hands of it!!!!!! Our goal is to not be dependent on my money for bills (just for savings, paying off the student loans/car, and fun money)-- it's just not worth blowing $500 a month on property taxes on a $150k home!!!
We are going to start looking at homes for sale this Spring because we despise our starter home!!
Thanks for listening ~I had to get that out of my system!!!
Nicki

All my best,
Danni
Oh, how disappointing! :(
I know how awful it feels to be building up to something and then have to let it go. It's impressive, though, that you had the strength to realize this just wasn't going to happen and to let it go.
I'm certain the universe has something better in store for you. But the waiting can be hard!
Blessings,
Heather
Nicki,
I am so sorry. Hang in there, girl.
Believe me.....you know we are currently building. We have gotten some expected bills from our builder during the process. Our house will be finished the beginning of December. However, we currently wiped out our savings. I'm trying so hard to save up. We have a whole house to furnish.
Don't lose hope of your dream. Hang in there. The time will come when it's right for you. In the meantime, continue paying off your debt. You will be in better shape later to build.
MYM
Nicki~ I'm so sorry that you won't be able to build your home right now. Can you hold onto the land that your Dh's folks are giving you? Will it cost you too much in land tax to hold onto it without building anything on it?
Maybe you can start house hunting in the Spring, like you both planned, and just keep the land for your dream house down the road. By then, maybe sewer will have been put in, and your debt will be paid off. Or maybe you'll love the new home you find in the Spring so much that you won't want to build on the land, and you can give it to one of your children to use when they go out on their own to start their own family.
It's a shame that your waitressing tips aren't counted in your income figures as far as the banks go. It just doesn't seem fair.
Pat :-D
Thanks everyone for your kind words. Yes it's very hard to let go. We really can't keep the land if we aren't building on it because there are 5 other siblings that are next in line. We had first dibs. I know none of them can afford to build, but it still wouldn't be fair to take the land. I have a feeling if no one else wants it, his parent's will want to sell it.
THe main reason we changed our mind is the property taxes. They are $38 a YEAR on that empty 2 acres now and will jump up to $6-$7K with a NEW house on it($150K for the home plus another $30k for septic tank, tap in fees, excavation and loan costs). NO one in this area pays that much even on $300k homes. THat's another reason we won't qualify for as high of a loan since they take your taxes into consideration.
THe down payment would be tough but we would have the money to pay the monthly mortgage~ but we can't fathom wasting $500+ a month, when we could buy a home for the same amount and pay only $200/month taxes. We will actually be able to afford "more house" if the taxes are less. Plus not pay for all of that extra crap associated with building.
THanks again girls, I feel like we are really making the right decision. I don't want to be "house poor."
;) Nicki