Circumstances changing! Some financial help and advice needed! [more inside]
Stuck with a house that I haven't been able to sell, becoming difficult financially to maintain as a rental. Please advise (long, sorry). [more inside]
I'm strongly considering putting in a offer on an income-restricted HDFC coop apartment in Brooklyn. I just straddle the income limits for 2009, but am well below it for 2006, 2007, and 2008, and the agent has assured me that won't be a problem, given the board an lawyer for this building (meeting the spirit of the regulations, if not the letter). I can afford to put down a large enough down payment so my monthly costs end up being slightly less than what my rent is now (with significantly more stability in cost from year to year). So I'm pretty sure this makes sense for me, but my only question is: is this a mistake in terms of eventually reselling the place? [more inside]
Question from a first-time house seller. My wife and I recently bought our second home without having sold the first. Although we and our agent feel that the house for sale is priced extremely reasonably and appropriately, it's been on the market for five months now. We have the financial capacity to continue paying for both houses indefinitely, with no need for a bridge loan, so that's not the issue per se. The question is, however, at what point does this process become an unacceptably bad deal, financially, and how do I calculate that? Or has it passed that point already? In other words, do the past five months of payments on the first house essentially represent money down the drain? Say each monthly payment on the house that hasn't sold (including mortgage, taxes, insurance, and utilities) comes to $2K. Does that effectively mean we might just as well have set the price $10K less five months ago? In which case we should be dropping the price now, and each month from now on, in an effort to stop the bleeding? I don't notice other sellers dropping their prices with every month that goes by, but the fact remains that since we've only owned the house for four years, we're building up practically no equity each month to "recover" when it finally sells. So it seems like the money's just evaporating. Maybe we get to deduct the taxes and interest from our income tax (or maybe not), but even if we do, it seems to me that there has to be a mathematical point at which it becomes pure damage control. And we may already be well past that point. I know we're not the only people who've ever been in the position of carrying two houses for a few months--it must happen all the time--I'm just not sure what the conventional wisdom is on handling the situation. Any advice would be appreciated.
So yesterday my wife — Ms. We're-Not-Moving — found a house closer to Portland that she loves. We both love it. The only offer we can make, though, is contingent upon selling our home, which we hadn't even considered until yesterday. Help! Does anyone have experience with this kind of thing? What can we do to make a contingency offer more attractive? What about bridge loans? Anyone have experience with those? I need advice on hurried real estate transactions (other than "don't do them").