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I've got a plan

By jan   Follow   Fri, 20 Jul 2012, 2:31pm   1,496 views   14 comments
In McKeesport PA 15135   Watch (3)   Share   Quote   Permalink   Like   Dislike  

We inherited a little house, not worth more than 90k. But I hate owning it, and it is in a less desirable area. Now on the other side of town where my husband commutes every day are nice well placed apartments for 1400 ish a month. This area has lots of sports stuff around it and it is on a golf course. The idea is to sell the house and use the money to buy about 6 years of rent all while getting capital gains on the money or putting it into gold for the inflation spike I'm expecting. All the while putting his earnings into assets other than housing.

So what do you think, should I hold onto this free asset, or sell and go to an apartment. I like apartment life, no yard work, and no repairs. I've given up on owning a nice house somewhere, way to expensive even now. I'm expecting a real drop in real estate values when the banks have to disgorge their back inventory of short sales. I would just like to have my stuff back from storage all of these years, and live in a new apartment instead of an old house. Opinions?

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1. zzyzzx Follow Befriend (9) 436 threads 4,261 comments Baltimore, MD

   1   5:10pm Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   Housing in McKeesport PA in a decent part of town is that expensive???

2. jan Follow Befriend 5 threads 73 comments McKeesport, PA

   2   8:19pm Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   no, it's right across a small river to the section 8 towers... rust belt town...

3. B.A.C.A.H. Follow Befriend (6) 5 threads 2,368 comments

   3   10:23pm Fri 20 Jul 2012   Share   Quote   Permalink   Like   Dislike   I tried to talk my partner into a plan like yours. In June 2006. I lost that argument. Oh well at least we "still have our house".

4. jan Follow Befriend 5 threads 73 comments McKeesport, PA

   4   8:36am Sat 21 Jul 2012   Share   Quote   Permalink   Like   Dislike   Well, it is a strange idea, kind of counter intuitive to sell a big asset like a house and not buy another. I just think that housing has to bust sometime. It comes down to the question, "why do I have to live in this dump, when you are working in the nice section of town", and the answer is that I don't have to. If we put away short of 300 a paycheck the apartment is paid for from that account after the initial 5 years and 8 months. Sort of floating ourselves a loan. And once the markets recover we can invest that money and make it last even longer. Hubby liked the idea, so when he's sure that he's got the job we'll do it.

5. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

   5   5:57pm Sat 21 Jul 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   If you are in the Pittsburgh area and end up in a town with the words "McKee" or "Home" in it, you should leave immediately!

6. jan Follow Befriend 5 threads 73 comments McKeesport, PA

   6   10:29am Sun 22 Jul 2012   Share   Quote   Permalink   Like   Dislike   LoL, homestead and mckeesrocks are really bad, but we are tucked into a nice little neighborhood that's safe.

7. jan Follow Befriend 5 threads 73 comments McKeesport, PA

   7   10:32am Sun 22 Jul 2012   Share   Quote   Permalink   Like (1)   Dislike   Decided to stay, can't beat free. That way we can save up and actually retire someday.

8. 37108605 Follow Befriend 1 threads 1,055 comments

   8   4:11am Mon 1 Oct 2012   Share   Quote   Permalink   Like   Dislike   jan says no, it's right across a small river to the section 8 towers... rust belt town... Sounds glorious.

9. freak80 Follow Befriend (4) 52 threads 4,416 comments Corning, NY Premium

   9   7:22am Mon 1 Oct 2012   Share   Quote   Permalink   Like   Dislike   Protected   Reader says Sounds glorious. But it's right next to Pants n' Nat, a locally well-known clothing boutique.

10. bgamall4 Follow Befriend (14) 821 threads 2,811 comments 63 male Las Vegas, NV bgamall4's website Premium

    10   7:40am Mon 1 Oct 2012   Share   Quote   Permalink   Like   Dislike   Protected   jan says but we are tucked into a nice little neighborhood that's safe. Do you venture out or just hunker down? :)

11. jan Follow Befriend 5 threads 73 comments McKeesport, PA

    11   8:06am Mon 1 Oct 2012   Share   Quote   Permalink   Like   Dislike   hunker down, actually we are in a good neighborhood a couple of bridges away from the city. We can access all stores and stuff without going into town at all.

12. ELC Follow Befriend (3) 3 threads 658 comments Fort Lauderdale, FL

    12   4:35pm Mon 1 Oct 2012   Share   Quote   Permalink   Like (1)   Dislike   jan says hunker down, actually we are in a good neighborhood a couple of bridges away from the city. We can access all stores and stuff without going into town at all. I would have sold it and gone on a world cruise. When the money's gone something will come up. We find it always does. We believe implicitly in this and it happens. But I guess it's easier to live for today not having children. I'm sure if we had children we'd think differently.

13. pkennedy Follow Befriend (8) 28 threads 1,350 comments Redwood City, CA

    13   5:19pm Mon 1 Oct 2012   Share   Quote   Permalink   Like   Dislike   Why not rent out the house, take the money from that and buy an apartment where you want. It's likely that the rent will offset a decent amount of the new loan, effectively giving you a newer place to live. Depending on your commute, gas, and car maintenance, the "extra" you spend on the new mortgage might be replaced with dwindling commute times, savings in maintenance and gas.

14. AdamCarollaFan Follow Befriend 40 comments Sacramento, CA

    14   5:24pm Wed 3 Oct 2012   Share   Quote   Permalink   Like   Dislike   apartment life/renting is great - no repairs and no yard work, like you said. i love it! if you can sell for a good price, and then can find a cheap place to rent, just do that.