[Industrialblog,
November 21, 2006]
MSN Financial Advice
Good advice.
Particularly hitting home is this:
I had exactly this advice given to me and against my better judgment (and to my regret) I ignored it. I've had to give up virtually everything for the past two years -- including maintenance on my home, my car and yes, even medical appointments for myself. Etc., etc., there's just no end to it.
Fortunately, I didn't stretch to buy my house. But a land purchase together with my house has been a financial bridge too far, especially considering the high land taxes, and has induced ongoing, severe emotional and financial stress.
The good news: I can get out of this mess by selling my land. The bad news: it's been on the market for eight months and no offers. I'm switching real estate agents and lowering the price next week. I'll probably take a bath, but at this point merely getting out from under the payments will be worth it. And there's a good chance I can keep the losses to under $10k.
Plus, in the future I know to stick to my guns and listen to my better judgment.
Particularly hitting home is this:
Your friends and family also may get into the act, telling you it's okay to stretch to pay that mortgage, since your income will eventually rise and make the payments more comfortable.
Maybe, maybe not. But anyone who's been house-poor knows the emotional, psychological and financial stress of stretching too far....
Buying too much house could mean giving up other things you want: vacations, eating out, a college fund for your kids, a sufficient retirement kitty. Or it could mean ever more debt, as you borrow to try to maintain your lifestyle.
I had exactly this advice given to me and against my better judgment (and to my regret) I ignored it. I've had to give up virtually everything for the past two years -- including maintenance on my home, my car and yes, even medical appointments for myself. Etc., etc., there's just no end to it.
Fortunately, I didn't stretch to buy my house. But a land purchase together with my house has been a financial bridge too far, especially considering the high land taxes, and has induced ongoing, severe emotional and financial stress.
The good news: I can get out of this mess by selling my land. The bad news: it's been on the market for eight months and no offers. I'm switching real estate agents and lowering the price next week. I'll probably take a bath, but at this point merely getting out from under the payments will be worth it. And there's a good chance I can keep the losses to under $10k.
Plus, in the future I know to stick to my guns and listen to my better judgment.
I don't follow land sales as closely to housing prices, but housing prices have started dropping in our area. A builder we worked with just lopped 11% off a house he has sitting in our neighborhood. If it sits long enough, he'll really get hit. The rest of us have to hunker down.
There's some activity ... I'm hopeful I can sell it before the end of the year. The sooner I can sell it, the sooner I can get back to my life again and actually have some money to do things, not to mention take care of all the deferred maintenance.