have a house which we have completly renovated!had i valued and made48% equity!!
the dilema is that things went a little wrong a while ago and now our credit rating is poor although we have a large sum to put down our bank will not give us another mortgage! so we went to a lender specialising in our situation. the apr is high and will still be in debt with a larger mortgage!!
would you remortgage your house
sell up make profit and rent
or sit on it and pay debts of (approx 4yrs left on them owing approx 20,0000!!!!
ahhhhhhhhhhhh!!!!!
2006-08-15 10:15:50 · 9 answers · asked by lubilu82 1 in Business & Finance ➔ Renting & Real Estate
I'd sell, pay off the debts, rent for 2 years, save up again, move somewhere cheaper and buy, or buy a fixer in the area you desire and can afford.
Right now it is a buyers market, interest will rise more too.
Sell, pay off and sit back and watch the market.
2006-08-15 10:21:10 · answer #1 · answered by ? 2 · 0⤊ 0⤋
The best person to answer would be a tax accountant. You don't have enough information posted. What is the value of the home, what is the amount owed on the mortgage, what are monthly mortgage and tax payments?
Is your 48% increase in equity before or after adding in the renovations expenses? What debts and monthly payment do you have besides the mortgage? What are your budgeted maintenance expenses? How much would your rent be if you rented? Would you have any cash left if you sold, paid a Realtor, taxes and moving expenses?
This is the kind of info you would need to evaluate your situation.
Owning a home is always a costly arrangement.
I own my home with no mortgage. Taxes, utilities, maintenance expenses average $6,000 per year. I have equity in my home that is not earning any interest. The temptation to sell and move into an apartment is always with me.
Rosie is wrong. Mine is an example where I would be better off, financially, by renting. "Never rent" is Realtor speak.
2006-08-15 17:31:48 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
It's a frustrating situation you have found yourself in. If you like the house you are in, then I would stay and try to pay off your debts and reestablish your credit history. If you are not particularly attached to this house, then I would sell the house, or at least put it on the market to see if I could get an attractive offer. If I received an offer in the amount I was looking for, I'd proceed with the sale. You can find a place to rent, and again, make sure you are paying down your other debts and continuing good credit habits. Then after a year or two, you should find yourself in a better financial situation that you have your profits from the house sale, plus any additional savings, to put down on a house, and your debt and credit score situation will have time to improve as well.
2006-08-15 17:33:50 · answer #3 · answered by Freddie 3 · 0⤊ 0⤋
Okay
I would do this, and it has worked in the past.
Rent your house out, move into an apartment building for two years. By renting out your house, you nolonger have to pay certain bills( Gas, hydro, Water) but you will still have to pay the taxes. When you rent the apartment, make sure it is cheaper than what you rented out your house at, and that the water,gas,hydro are all included.
Say you rented your house out at 1300.00 per month and your rent at the apartment was 700.00 per month you would save 600.00 per month. Put that money off in a separte account. High interest savings account, and do not touch it. Over the course of two years you would have saved 14,400.00 plus interest.
If you did it for 4 years, you would have saved 28,800.00 plus interest. That would give you 20,000.00 to pay off the amount owing and give you 8,800.00 to use as a downpayment towards an apartment building.
Or a different way of doing it is, sell the present location and buy a triplex or six plex apartment building. You live in one of the units and rent out the others. If the rents were say 650.00 per month and you had a 6 plex(5) would be rented out for 3250.00 total income. Out of that you would have to pay the bills, the mortage and what is left would be profit....but not for spending. Again put it in a high interst savings account and leave it there. After 5 years you should beable to obtain a resonable mortgage for you to purchase another home and then rent out the apartment that you had occupied. giving you that much more.
2006-08-15 17:35:45 · answer #4 · answered by John M 3 · 0⤊ 0⤋
remortgage for a better rate or lower and without closing cpsts or nominal fees such as di-tech for only $350.00 never pay it off and let the money sit on the house. that's poor investment. use the money instead to pay off debts. Loan balance of $20,000 is nominal balance but a good tax shelter. never rent a house, that's money thrown away.
2006-08-15 17:25:45 · answer #5 · answered by rosieC 7 · 0⤊ 0⤋
Well it really depends on where you live. Right now, in FL, the market is a buyers not a sellers market. WHich would not be good for you. You could be trying to sell your house forever. I would refinance your home and maybe go with a private lender.
2006-08-15 17:22:39 · answer #6 · answered by genietini 2 · 0⤊ 0⤋
It is better to sell the house and live debt free.
2006-08-17 11:11:23 · answer #7 · answered by roy_s_jones 6 · 0⤊ 0⤋
Sit on it and pay off depts.
Try calling Dave Ramsey
www.daveramsey.com
2006-08-15 17:20:47 · answer #8 · answered by captianpr 4 · 0⤊ 0⤋
read tips and articles on mortgages and renting that will help you on this site
2006-08-15 17:37:11 · answer #9 · answered by Anonymous · 0⤊ 0⤋