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Josh-D. S. Davis

Xaminmo / Omnimax / Max Omni / Mad Scientist / Midnight Shadow / Radiation Master

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I've stumbled through some articles at iTulip hypothesizing that the real-estate bubble may not burst, rather it might slide down a some whilst US inflation climbs rapidly.

The USD is already known to be devalued compared to the GBP and EUR.

Maybe my company should start sending us to the UK as well. Fair wages there should cover travel and be able to get us more $$ but still be a discount for the UK.

I find myself wondering whether I have enough money in foreign investments.
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I'll keep trying really hard not to beleive there is a bubble when I see condos and townhomes going for the 350s out here.

I'm sure you could find a nice, 600sqft condo for $350k. hehe

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That's sort of how I interpreted it too.

I sat down and reached out in my mind a couple of weeks ago. I accepted that we were already past the point of being able to move out of out house. It's expensive to move, and the market's been down for a year already.

I brought up to Erica that if we didn't sell right then, at a small loss, and chew up all of our liquid savings right then that we'll be stuck in this house for 10 years.

At that point, Erica needed a paper bag to breath in. We're all settled on that now. It took a week or so though.

So, we're going to hang out here for a while. It's just the financially sound thing to do for us. We'll focus on making the house more what we want and less on whether we can recoup much of our "investment".

That's pretty much how I was interpreting it too, which is why I was trying to avoid selling now.

I think if you have to sell, this year is your best bet for a while.

If you can't get it onto the market by August, then you may have to find a way to sit on it for a while.

I worry even now that $170k may not be sellable, even fixed up.

So don't spend all of the fix-up money. You may have to use it to augment house payments for a while, in which case you may want to refinance the house and buy out Rachel's interest in it.

There's no way it should take all the currently liquid assets to finish doing the required minor fixes. Carpet is the major one, and that's a necessity. The majority of the cost is going to be associated with actually selling it, so that will depend on how much we actually get.

I looked at refinancing, but I can't get the monthly payments any lower than they are now, unless I do something silly like convert to an ARM or an interest only loan. The interest only option is a last-ditch idea that I would prefer to avoid.

Sorry I wasn't more clear. I didn't mean refinance to lower payment.

I meant, since Rachel isn't helping, and won't be able to make payments, then if you get stuck with the house, she shouldn't get to benefit from your work and continued payments.

At that time, you'd see about getting a release of her rights on the deed in exchange for replacing the lein with one entirely in your name.

Then, you could put $1k/mo from you and $700/mo from savings towards payments and you'd be ok for a couple of years. It's possible that through the next couple of years, inflation might increase enough that your pay might increase enough to cover more of the difference.

If you had more in savings, I'd say you could buy down on principal then refi, but I'm thinking you'd still be short.

The other option is for Erica and I to save up a little more and then we could swap houses with you. We could really use the space, but we really couldn't afford $1700/mo. (IRL, this wouldn't work because you'd be further from work and still stuck with a mortgage).

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