Grambles Crossroads (House Building Thread)

[mattdibart]

Grambles is the move very urgent for you guys? If it's something you can hold off on a bit longer I would suggest trying to get to a 10-15% down payment. May hurt up front but down the road when you are saving thousands on interest payments you will thank yourself.

 

[AudiSport4000]

I dumped my GTI to save more for a house. Best decision for me, IMHO, but YMMV. When I got the GTI I had a plan, which ultimately did not work out, which led me to selling the GTI. I know when to change things but a lot of thought went into what I did, and it seems like you have some good options on the table.
I say option 1 only because I can relate 100% and am still saving for the house (well, large garage with living area

 

[grambles423]

Grambles is the move very urgent for you guys? If it's something you can hold off on a bit longer I would suggest trying to get to a 10-15% down payment. May hurt up front but down the road when you are saving thousands on interest payments you will thank yourself.

Urgent?.....I mean...we can always wait another year. I guess. But we're tired of renting. We want our own house at this point. I hate our current landlord. He's not utilizing the medium between us. Our last place was a perfect experience..

That is where emotion needs to be factored in.

I dumped my GTI to save more for a house. Best decision for me, IMHO, but YMMV. When I got the GTI I had a plan, which ultimately did not work out, which led me to selling the GTI. I know when to change things but a lot of thought went into what I did, and it seems like you have some good options on the table.
I say option 1 only because I can relate 100% and am still saving for the house (well, large garage with living area

Sounds like you made an excellent decision.

 

[AudiSport4000]

Cool topic though. Lots of good information here from various members. You will make a wise choice

 

[grambles423]

I think they've lost the way a bit.

The 07-11 Si wasn't bad. The styling was bearable, and I personally loved the powertrain, gearbox, and steering feel. Then they neutered it with the lower-revving 2.4, numb electronic steering, and the dumpy 2012 redesign.

The CR-Z had a lot of potential as a concept. They should have either made it an Insight coupe, and made it a fuel-sipping hybrid, or made it a successor to the CR-X and made a true sport hybrid that handles and has inspiring performance. It simply tries to cater to too many interests and doesn't nail any one of them well.

Then they killed the S2000.

They need to produce cars with soul, character, and innovation. Not everything they make needs to be a dumpy neutered appliance that caters to the masses. The dumpy neutered appliances should allow for the production of halo cars like the S2000.

The death of the S2000 was definitely a hurtful one, but what do you expect from a exclusive platform besides throwing money away? The more commonization the better.

The new 2013 SI is actually fun and nimble. It lost a little "character" but its still a nice car to drive. Way more refined than the 8thgen. Next gen will be better...but dont forget its still a Civic.

CR-Z was a total fail I'll agree with that. We just didnt know what the market expected out of a "Sport Hybrid". You'll be .....VERY surprised at what we have to offer for the new NSX. Mind blowing to say the least.

We are getting back to the "fun" cars with character...but it takes time. The new Accord hit a home run and brings a lot of fun to the table, but dare I say that the new MDX drives soooooooo damn sporty. If you throw IDS into sport and place it into sport mode...it'll corner like a monster (Well...as much as a SUV can). I still think Acura's styling is a bit conservative...but its much much better. I know a guy in LA that works for our styling center and much is improved with that system now.

We are getting there. Dont look at now. Look towards the future.

 

[chc29]

Also if you're really paying $1700 a month towards the loans, definitely definitely consider dropping that down. If you spread 20000 over 5 years @ 7% you're paying roughly $4000 in interest. That's about $65 a month in interest over 60 months (payment would be $400 a month). So for $65 a month, you get to pay $1300 less. All this math is rough calculations but you get the idea. And you only have to do this until you get your mortgage. Once you've "settled in," pay off your loans as you wish.

 

[grambles423]

Cool topic though. Lots of good information here from various members. You will make a wise choice

Much agreed. I thank EVERYONE here who has something to say.

I love in depth discussion

 

[grambles423]

Also if you're really paying $1700 a month towards the loans, definitely definitely consider dropping that down. If you spread 20000 over 5 years @ 7% you're paying roughly $4000 in interest. That's about $65 a month in interest over 60 months (payment would be $400 a month). So for $65 a month, you get to pay $1300 less. All this math is rough calculations but you get the idea. And you only have to do this until you get your mortgage. Once you've "settled in," pay off your loans as you wish.

Truth. I really need to do the math. That might show something better.

 

[Desert MVIGTI]

I hate debt.

But again..the unknown is a consideration we cannot budget for. THAT is why I need my safety net.

This however will kill us on taxes if we do not adjust properly.

We currently are allotting ourselves about $250K-$270K MAX for a house when the bank clearly wanted to give us upwards to $350K. That's way too much in my eyes, hence why we want to live within our means. I'm the froogle kind of man. She has exquisite taste....so often...there's much compromise that needs to be had.

I'll say this....I budget like a Nazi and I've very very proud of it.



1250/mo for a 3bed/2bath house with 2 car garage in an almost rural part of our city. (Chelsea, AL)

Our goal is to settle down in this town. The next house WILL be the house we live in for a very long time. Have kids. Watch them grow up. You know...typical Suburban America type of stuff. The "wanting" of a house is almost a necessity at this point.



Exactly....they're practically GIVING money away right now.

If you really want to settle in this town, this is indeed a good time to buy. That said, here are a few bits of advice from a guy who has bought, remodeled and sold 3 homes, had the twenty something houselust, and now rents and loves every minute of my California condo, turn the key and go where you want existence....I also have one 10 year old. It sounds like from your location (AL) and prices, you are looking at new construction or relatively turn key homes.

1. Spend your money on QUALITY, not QUANTITY. I would assume most 350K homes in AL are 4000 sq. ft. plus? Unless you are planning on having a platoon of little Grambles, nobody needs a 5000 sq. ft. house. Nobody. Have you estimated the cooling costs for a monster home in the AL summer? It won't be pretty, my friend. With huge size comes added complexity and maintenance cost. Need a new roof? Step up. DO NOT DESTROY a tight, organized financial plan by swinging for the fences on your first house. Your wife has exquisite taste? Then find a 3000 sq. ft. ( or, gasp a 2500 sq. foot) home with quality materials and nice finishes, not 4000 sq. ft house that's as cheaply put together as the spec builder could make it.

2. Do a realistic assessment of increased costs....RE taxes, utilities, maintenance, and what your wife is going to need to have changed. All too often people say think the mortgage deduction of owning will outweigh increased expenses.....and it doesn't, sometimes by a HUGE margin.

3. Financial Liquidity ALWAYS takes precedent over houselust/white picket fence. A white picket fence that has turned into a financial albatross has been the doom of many a marriage.....don't get into something that sucks the life out of your finances, and then eventually, you.

4. Don't trade a wrench for a tablesaw. I spent far too much of my previous life in the Home Depot or its ilk. I learned a lot, but frankly I wish I'd spent a little more time effin around. Balance, man, balance. You ENJOY your car hobby. Don't just trade that for 4 bathroom sinks or spending your weekends busting ass on your wife's exquisite taste.

There endeth the lesson. Good luck, dude, you seem to have a bright future.

A little pissed you haven't reviewed the Bilsteins, as well.

 

[SRT2GTI]

I'm sure you're already aware of this, but when buying a home be aware of the many little fees and expenses that add up quickly such as; appraisals, home inspections, radon tests, etc. Also, if you're under 20% down most bank lenders will require you to pay private mortgage insurance (PMI). Also, obviously the more you put down, the better loan rate you will receive.

 

[chc29]

Truth. I really need to do the math. That might show something better.

I'm relieved that you're considering it. It shows that you haven't been too far gone from Dave Ramsey brainwashing. I think that guy is a little extreme.

 

[Gunkata]

Z, had a hard time keeping up lately on here, but I did see where you went much lower than what they approved you for, and THAT is very smart.

Feel free to text me for my work number and you can call me to discuss, as I've owned a condo and a house, and have been through the good times of ownership and the bad, etc, etc, and can probably give you some good insight.

 

[Slec]

I went through something like this while my wife was in Grad School. Student Loans are a good way to let you put cash into savings. I know it hurts to pay interest but you have to look at it as a way of freeing up cash for the down payment. PMI's aren't the end of the world. A trust worthy mortgage broker can tell you if it's better to pay off the student loan or put that cash into a down payment based on your exact situation. They may urge you to roll the student loan into your mortgage, but i'd recommend against that.

We bought our previous house at the height of the market and everything blew up 6 months later. The student loans are coming down nicely and it's never been a massive burden. Point being, we lost on the house, but we were able to walk away without owing money partially because we kept the student loans separate from the mortgage.

As for cars, both of ours were paid off. Having something you are intimately familiar with working on is worth it (mine being an '02 Xterra). Perhaps offering out your services to help others do their installs at under shop prices, you have the reputation for it. Everything is on them, you're there to help and get dirty, but ultimately they are responsible and you get a small stipend. If i were near you, I'd pay you rather than a shop to come help me with installs. it woudl give me the confidence to give a clutch replacement or something like that a try.

 

[Desert MVIGTI]

Also, continuing on regarding Quality v. Quantity.

If I was starting from scratch with $270K in Alabama, I would strongly consider building a home with my own plan or architect. As I said before, a well designed 2500 square foot home can be far more livable, intimate, enjoyable and efficient that some cookie cutter 3500 square foot house with a "bonus room" (Bonus room is code for "crap I need to get rid of anyway" room.)

Also, custom building allows you to build a smaller, but architecturally elegant place with great flow, AND having a four car garage in the back.

Pardon me, I mean, four car garage in the back, brah.

 

[lilfleck]

Option 1 makes most sense financially, but the most work--possibly not practical.

Option 2 seems to be the most practical/balanced option there.

Can you really avoid the mod bug? If you're driving a stock GTI, wouldn't you prefer a beater civic and have more cash?

I would sell off mods and continue to save in the bank. You don't NEED a house now. You will get one when the time is right; patience is a virtue!

I still have a marriage, house, kids to plan for. Each one is stupid expensive in its own way.