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Old 02-17-2013, 12:11 PM   #20
Leanbh
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Join Date: Sep 2009
Location: Chi-town burbs
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Re: Taking DR/too frugal living too far....not updating home....

Quote:
Originally Posted by erin_c_odonnell View Post
Ours is on-top of the mortgage loan- conventional loan not a 203K. It only lends up to $20,000 on top of mortgage but it is less money down than a 203K (10% vs. 20%). We pay PMI but after the first year, if you can show the house is worth more than your loan, they cut pmi out (saves us $90/ month). We also are aggressive and will pay more than the min payment. If you make 1 extra payment a year it cuts your loan from 30 yrs to like 22 yrs. we also will do the minor work ourselves (replacing carpet for Hardwood, painting, etc) so knowing basic construction is very handy. I will say I don't think we do it if our monthly would be extremely higher but for us buying ends up being only $50/month more and thats including taxes and home ins. Plus the equity is ours to keep and we get "stability". We plan to stay in this house the next 30+ yrs too.
I should ask about that. We were planning on saving it up and then doing bit by bit. DH gets erratic bonus so one month it would be 1.5k(which we need 1k of that for basic living), then on the higher months it could be 3/4k with some other bonus stuff through the year. My plan was to keep those bonus aside and the bit we have left over from selling/our relocation amount. Do the kitchen and floors first. Next year tackle a bathroom or two....

Quote:
Originally Posted by acwakip View Post
As I read this, I thought of my mother.
My father built our family's home back in 1960. The kitchen has the exact same appliances (stove/oven) in it. The kitchen needs updating as does the bathroom. The walls are all plaster and an off-white color.
My mom is now 76 and is very well off. She knows that her house would be worth more if she updated, but she just doesn't care. Everything is functional, therefore it is fine.

The bathroom is the worst. Nasty hard water stains, plaster falling around the shower walls, the toilet "sings" when you flush it.

She doesn't hoard, but she is very practical. I think nowadays there is so much focus on keeping everything up to date, but as another person said, you can update, but as soon as you're done, it is out of date.

We were bugging her about getting a new stove at Christmas. I realized then that it would be wasting money to replace something that functions as it was intended. She has replaced the HVAC and windows in her house because the poor efficiency of the older items bothered her. Of course, those are now out of date as well.

Sorry to ramble. I have never watched the show you mentioned but the home shows bug me. My daughter loves to watch them but it puts ideas into her head that our things aren't good enough or that just because they're old, they need to be replaced. I understand the situation in the OP is different in that the house definitely needed repair.
Actually my own mother was similar. She basically took care of us, then my nephew until finally my sister had to persuade her to do her own home up. She is beyond thrilled now...she had the money, just didn't make herself a prority.

Quote:
Originally Posted by Melinda29 View Post
Yes, thay sounds like taking DR too far. He advocates setting up sinking funds for the very purpose of doing larger things like renovations, as long as you follow the baby steps. It would have made sense for that couple to do a room at a time, as they could afford it.
One room at a time is a great way to do it without being totally overwhelmed. Being a homeowner is a constant moneypit...always stuff to do or to be done...
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