Hi IM's
My partner & I have a mortgage on quite an old house. My partner bought it when he was young & single as he planned on doing it up. But things didn't go to plan over the years & now we have a mortgage & two kids - one planned, one unplanned. We are both 23. We still have over $120,000 left on the mortgage, & honestly, I hate the place. I wish my partner had made better decisions when he was young when it came to buying such a cheap, old joint. I know it sounds selfish because we have a home, & alot of others don't, but I'm writing in to find out what our options are. The house still needs a lot of work, & we were going to extend, but it's so impossible with everyday debts that we already have - cars, food, daycare, etc. So we can't afford to do anything to the place, can't rent it out & move, can't sell it because my partner refuses to rent. The place is small & so hard to keep clean with two young children & trying to study at the same time. I'd love to live somewhere with less maintenance, but what options do we actually have other than to stay here & keep paying money on a house I hate & don't even want to live in. I am desperate to start trying for another baby at the end of next year. By then I will be back at work & we will have enough money for a further edition to our family, but I don't see how we will all ever fit in this place, & I can't just put off my life because we live in a small, old run down house that we cannot afford to make suit our needs. I feel so stuck in a rut every single day & don't know what our options are of getting out of this place. I don't think we have any :(
Stuck In A Rut
Stuck In A Rut
Posted in:
Money
3 Replies
Firstly I want to say, your 23! You are both still really young and have so much time up your sleeves. I know it's not nice living in a place you don't love and I don't know what renovations need doing. I'd be looking at cheaper renovation options so at least the place feels nice. So scrap the extension maybe but look at what you can do, a fresh coat if paint done a room at a time, getting the floors redone even with Lino can make a huge difference. Also a $120, 000 mortgage is really small for people this day and age. Have you spoken to your bank/broker about if you have any equity in the home to access to pay for renos?
My mum grew up one if six kids in a two bedroom house so I'm sure if your space smart you can manage if you want to.
I sugest speaking to a good financial advisor. They maybe able to give you different ideas on how much it would be to extend ur mortgage to pay for extensions and renovations or to sell and up grade to a bigger house and how much it would cost. It's really good you have a house and being so younge but your husband needs to understand a growing family needs space and if you current place is too small it might be best to cut the Reno dreams sell up and upgrade. Just have to be as open as possible with the financial advisor a month before ur visit to them record everything u spend in ur budget so they can see exactly what you can afford
I agree! I work for a major bank (in home lending) and we have this question all the time. Even if you don't have equity based on the current market value, then can look at an 'as if complete' value to lend against. This means you may need quotes from a builder that the bank will take into consideration. Renovate nicely then place on the market. Sell down, clear your debt, and start fresh with the next property. There may be more options than you know of. :) good luck! Fantastic that your hubby has bought a home at such a young age - it may be a great stepping stone. :)