I Own a House, but Rent an Apartment
It's true. I've got an empty house, and I'm making mortgage payments on it. I choose to live in an apartment close to where I work. Call me a victim of the housing bubble, I suppose. My house is in the middle of nowhere; it's in a place where you used to be able to commute 30-60 minutes to a big city to work. With costs rising faster than wages, and home prices dropping substantially, the house has become an albatross around my neck. It's been vacant for nearly a year now, and some of the deferred maintenance is starting to show.
Now, my apartment is very nice. If something breaks, the maintenance people are quick to fix it free of charge. It's nearly as big as my house, and has a better layout. It's also close to just about everything I want to do. I've even got an awesome view.
Luckily, the payments on both are manageable...I just shudder to think about what would happen if I were laid off or injured. I guess I should have a plan for getting rid of the house. I don't want to damage my credit by letting it go, or by giving it back to the bank. I don't think I want to be a long distance residential landlord. The house is now worth less than I owe, so selling it in a short sale is about my only option...and then working out payments or some other arrangement with the bank. That, or keep on aggressively paying down the mortgage.
I just keep looking for the bottom of the housing downturn, and it's nowhere in sight...
Now, my apartment is very nice. If something breaks, the maintenance people are quick to fix it free of charge. It's nearly as big as my house, and has a better layout. It's also close to just about everything I want to do. I've even got an awesome view.
Luckily, the payments on both are manageable...I just shudder to think about what would happen if I were laid off or injured. I guess I should have a plan for getting rid of the house. I don't want to damage my credit by letting it go, or by giving it back to the bank. I don't think I want to be a long distance residential landlord. The house is now worth less than I owe, so selling it in a short sale is about my only option...and then working out payments or some other arrangement with the bank. That, or keep on aggressively paying down the mortgage.
I just keep looking for the bottom of the housing downturn, and it's nowhere in sight...
It is very obvious that someone will want to live close t where he or she work.My apartment is very close to where my wife work. I have to go a long way for my office. I have to do this for my wife.
Friday, March 14, 2008 08:26:35
A ToastTheTrends Reader says:It is true that if a person would get a house near the place he/she works then life becomes easy for him.
Wednesday, April 02, 2008 13:32:13
A ToastTheTrends Reader says:renting at this point is not a bad idea, plus you said that your apartment is 'perfect'... its actually cheaper, as opposed to owning the house you are renting now... annually, rents are less than 3 percent of purchase price... on to your house, there are lots of resources and experts out there that can help you out... hope you can come up with the best deal for it...
Wednesday, May 07, 2008 13:59:01
A ToastTheTrends Reader says:Good point Trent. The place I am renting is less than 10 years old, and has an awesome lake view. My cost to rent is indeed less than 3 percent when you factor in the higher costs of insurance, property taxes, and maintenance for an owned property.
I'm working on the old farm house that I own (I think it's 113 years old) and it was recently appraised for about $500 more than I owe the bank...a couple more months of sweat equity, loan payments, and a lot of spackle and paint, and I hope to be able to put it on the market and just about break even.
Wednesday, May 07, 2008 20:20:29
A ToastTheTrends Reader says:Hi, thanks for the comment. I had a question for you folks, i heard of loan modifications for distressed mortgages. do they work? i might possibly face foreclosure and move my family and would like to know my options. thank you for you assistance. we need to stick together, homeowners.
Thursday, January 08, 2009 01:09:12