Taking DR/too frugal living too far....not updating home....

[erin_c_odonnell]

I agree op that they should have been renovationing as they go but if this person has hording tendencies (I haven't seen the show) then I can see why they were inclined to horde money too.
We are buying (under contract now and just finished our inspections) a 3,800 sq ft home. It's a 1988 but it looks like a 70s throwback. Needs TONS of repairs BUT with a $20,000 Reno loan we're getting all the major stuff done AND we're getting a home for more than $100,000 LESS than its appraised for. I'd say its an investment. We've looked at a lot of houses here and we could pay more or the same amount for a house 1/3-1/2 the size and NONE had the awesome character this home has. I can't wait!

[Tris]

Maybe renovations were just overwhelming? I don't know, I can think of a million reasons someone would have the money but not the time/ ability to update a house. Sometimes it's just not a priority. Maybe they always planned to just move but stuff happened? And really, if they updated 10 years ago, their house would be outdated already

[RNCCRN9706]

For most, renovating a house involves borrowing money. That's what DR is against.

My thoughts are, life is too short. Since 2008, I've lost two first-cousins to cancer, both were 35 when they died. One worked 7 days a week so his wife could stay home with their children but missed pretty much all of their school events and sports games. He said on his death bed that he wished he hadn't worked so much because he missed it all.

The other cousin, a woman with a husband and 8 yr old son also worked but not enough so that she missed her son's school performances or sports games. She also took trips with her family several times during the year.

I have also survived cancer. Last year, I lost my right kidney due to a cancerous tumor. It could've been ME we were burying at Thanskgiving time last year and not my cousin. When you've had cancer, it changes your perspective on a LOT of things. Including saving a boatload of money and becoming TOTALLY debt free because for some of us, there won't BE a 'later' to live for. You just don't know.

[KrisM]

Originally Posted by Leanbh But, that's my point.....those people.....lived like no one else.....now it was later and they had a boatload of money yes....so NOW they were living in a much nicer home. But what I'm saying is what a waste if you had THAT much money all these years I'm sure, then you couldn't redo the house a little? Seriously a few k in painting or 20k for a super nice kitchen and they could have enjoyed it for much longer. I think what you are saying is that they should have....later lived like no one else....sooner, right? But that's why I put "too frugal" in the title too........ BTW - it's one thing if you don't have the money, but in this case they did. Normally I would think a lot of people on the show up a HELOC to come up with the funds, but in this case she stated they had saved a lot. Kinda the mystery millionaires who go to their graves with a ton of money......

I just don't see this as Dave Ramsey what-so-ever. It's not his plan at all, so it's not taken too far. It's just people too frugal or whatever, but I don't think it's Dave Ramsey gone too far.

[KrisM]

Originally Posted by Tris Maybe renovations were just overwhelming? I don't know, I can think of a million reasons someone would have the money but not the time/ ability to update a house. Sometimes it's just not a priority. Maybe they always planned to just move but stuff happened? And really, if they updated 10 years ago, their house would be outdated already

I'll agree with this, too. We have the money to redo our kitchen. It's not terrible, but the doors need to be refinished or replaced, the counter is dark green laminate and not our style, and we'd like to have a place for trash, more drawers, etc. But, it is very overwhelming! It's a lot of money to part with and the thought of picking the wrong thing is holding us back to an extent. We're really hoping to do it this fall, once DS2 is in kindergarten. But, I'm just not sure we'll have a plan.

[Leanbh]

Originally Posted by erin_c_odonnell I agree op that they should have been renovationing as they go but if this person has hording tendencies (I haven't seen the show) then I can see why they were inclined to horde money too. We are buying (under contract now and just finished our inspections) a 3,800 sq ft home. It's a 1988 but it looks like a 70s throwback. Needs TONS of repairs BUT with a $20,000 Reno loan we're getting all the major stuff done AND we're getting a home for more than $100,000 LESS than its appraised for. I'd say its an investment. We've looked at a lot of houses here and we could pay more or the same amount for a house 1/3-1/2 the size and NONE had the awesome character this home has. I can't wait!

I love that some of you are in the same situation as us, definately inspiring me to just go for it. Can't get this house out of my head. We think it would be an investment too.......are you getting the Reno loan seperate to your mortgage?

Originally Posted by Tris Maybe renovations were just overwhelming? I don't know, I can think of a million reasons someone would have the money but not the time/ ability to update a house. Sometimes it's just not a priority. Maybe they always planned to just move but stuff happened? And really, if they updated 10 years ago, their house would be outdated already

Seems the DH wanted to move for the last 15 years, DW did not. Could have been time....maybe they were both very career driven/busy? They hadn't updated in seriously 25+years though.

Originally Posted by RNCCRN9706 For most, renovating a house involves borrowing money. That's what DR is against. My thoughts are, life is too short. Since 2008, I've lost two first-cousins to cancer, both were 35 when they died. One worked 7 days a week so his wife could stay home with their children but missed pretty much all of their school events and sports games. He said on his death bed that he wished he hadn't worked so much because he missed it all. The other cousin, a woman with a husband and 8 yr old son also worked but not enough so that she missed her son's school performances or sports games. She also took trips with her family several times during the year. I have also survived cancer. Last year, I lost my right kidney due to a cancerous tumor. It could've been ME we were burying at Thanskgiving time last year and not my cousin. When you've had cancer, it changes your perspective on a LOT of things. Including saving a boatload of money and becoming TOTALLY debt free because for some of us, there won't BE a 'later' to live for. You just don't know.

That's the other side of the equation. So very said about your cousin. I can't even imagine.......especially with young kids I can see how that puts a whole new perspective on how to live your life...

Originally Posted by KrisM I just don't see this as Dave Ramsey what-so-ever. It's not his plan at all, so it's not taken too far. It's just people too frugal or whatever, but I don't think it's Dave Ramsey gone too far.

That's ok, we can agree to disagree.....I personally think they were more into steps 3, 4, 5...(is that FFEF, retirement, college etc...basically after BEF)....that they neglected to do some basic maintenance along the way. I know DR is into maintenance though...cars etc, pay a little now to avoid a large cost later. I agree with you with just being too frugal....

Originally Posted by KrisM I'll agree with this, too. We have the money to redo our kitchen. It's not terrible, but the doors need to be refinished or replaced, the counter is dark green laminate and not our style, and we'd like to have a place for trash, more drawers, etc. But, it is very overwhelming! It's a lot of money to part with and the thought of picking the wrong thing is holding us back to an extent. We're really hoping to do it this fall, once DS2 is in kindergarten. But, I'm just not sure we'll have a plan.

Our kitchen is similar, not green etc but overwhelming as we wanted a new kitchen but to do it "right" would have been a lot. I know the laminate is not that expensive at home depot etc, so even that would be a big change I'm sure.


We were more like do a little at a time. So....no....I didn't WANT to spend $200 on deck paint last fall, but now that house is sold quickly I'm very happy that we did. We do smaller projects like that on a regular basis. Honestly I think that's all most people need to do until something big goes out.

[erin_c_odonnell]

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.

[acwakip]

Originally Posted by Tris Maybe renovations were just overwhelming? I don't know, I can think of a million reasons someone would have the money but not the time/ ability to update a house. Sometimes it's just not a priority. Maybe they always planned to just move but stuff happened? And really, if they updated 10 years ago, their house would be outdated already

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.

[Melinda29]

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.

[Leanbh]

Originally Posted by erin_c_odonnell 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....

Originally Posted by acwakip 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.

Originally Posted by Melinda29 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...