[Ashlee T.]

I REALLY appreciate you all taking the time to read this and give me your honest opinion. I know there were bunches of numbers and blah...so I appreciate it VERY much.

He told his friend aka the seller this morning that he was not going to purchase the home. I hope he did it because he realized it would be a bad decision, and not because he knew I thought it wasn't a good choice...but either way, I think he saved himself for a LOT of work leading to alot of disappointment and possibly financial strain. I told him this am that if he wants to find a great deal on a good home that needs some upgrades and remodeling (since he can do alot of it on his own), that I'd be more than supportive of him......... but that if he ASKS my opinion, I will tell him if I do not think it is a good choice.

Is he factoring in the cost if insurance? The increase in utilities? Township services? The property tax? He's going to be paying much more than $630 a month, that cost will only cover the loan... not the actual cost of living in the house. I hope he realizes that

I factored in prop taxes and insurance (included in the $633). But either way, you're right...there are additional expenses involved in owning a house. He has owned before. But for some reason he thought he could make money off this house, and because the sellers were giving him $11k he thought it was a good opportunity to be able to make the improvements and increase the value of the home. I get his thought process there......but with THAT house, it just wasn't going to be worth it. Homes in that size range are a dime a dozen around here. And lots of them are not only MUCH newer but have open floor plans to where this one was really boxed in and closed off on the inside.

And on top of the house just being a bad investment IMO, the mortgage situation just seemed a little shady to me. It was going to be a rural housing loan, which requires a 2% Guarantee Fee which is added into the loan ($2080), but his "mortgage guy" was quoting him a loan of $104,000 which means he was quoting him a total of $7500 in fees!!!! Take the $2080 out to the Rural Housing Development, and he was charging him over $5k in loan fees. So on a house he would've been buying for $96,500.....he'd be doing a loan for 100% of the home value at $104,000.

I'm GLAD he's made the right decision here. I have voiced to him my concern in how he has handled this whole situation. I am very financially conscious. I couldn't possibly be happy with someone that tried to make impulsive large financial decisions. I believe he would've bought this home the first week he saw it if he hadn't asked my opinion and I expressed great concern. But I guess the only way I will learn these things about him is with time.

Thank you all SO much!!!!

[KMonte85]

That's good news BD! I'm very glad to hear that he's decided not to follow through with the project. Sorry, I didn't catch that you threw in insur, etc with the $630 (I was skimming the #s )

If there's anything to be said about this, I think its great that you've got a guy who values your opinion enough to ask you what you think of these sorts of things. And given that he was so very positive about it before, he must value your opinion. Whether he didn't do go through w/ the purchase because you said it was bad, or because he took your coversation into consideration and decided for himself - he still valued what you had to say. Even though the thought of it was a bit foolish and impulsive, its a good sign that he asked for your input before following through...

That right there can be pretty much priceless

[Ashlee T.]

Even though the thought of it was a bit foolish and impulsive, its a good sign that he asked for your input before following through...

Thanks for pointing that out. I was not seeing it from that angle at all. So...I sent him a text and told him I was really proud of him that he made the right decision and that the fact he cared enough to even want my opinion on it means alot.

I did, however, cancel my date with him tonight and reschedule for tomorrow because he kept me up WAYYYY too late last night talking about this, caused me to miss my Greys and Private Practice and I'm exhhhhausted today. LOL!

Thanks girl.

[KMonte85]

I mean, the whole situation is kind of like "really? he even THOUGHT that was a good idea?" but the silver lining really is how much he thinks of you to even want to know how you feel about it!

Oh man! That is dedication if you gave up Greys time to help him talk it out! He owes you BIG!

[Ashlee T.]

Oh yes!!! At the bottom of the email I sent him the "fine print" stated:

*by reading this email you agree to pay your "financial advisor" in the form of Barefoot Reisling."

LOL!!!!

[Guest]

He'll make 6K after he sells it.....

That line continues to stick in my head. No offense (implied or intended) but I won't even consider a deal unless I know I can clear AT LEAST 15k.

6K isn't worth arguing with your GF over when it's all said and done. No way. No how.

This was a bad deal all around except for his "friend" the seller.

Glad he didn't buy it!

[Ashlee T.]

He'll make 6K after he sells it.....

And thats ONLY on the pipedream that he'd increase the value of that home 10k within 1 year and then turn around and sell the home for the full value of $114,000. *rolling eyes*

That line continues to stick in my head. No offense (implied or intended) but I won't even consider a deal unless I know I can clear AT LEAST 15k

This is where his desperation to make this work came into play. And I'm not sure why he was so determined to make it work. When he started out looking, he said he in no way wanted to buy a home that he wasn't going to be able to make at least 10k off of. As this went on...his tune changed alot. I totally agree on the 15k thing.

6K isn't worth arguing with your GF over when it's all said and done. No way. No how.

He did say last night "I would much rather let go a couple thousand dollars profit than to be on bad terms with you". Lol

This was a bad deal all around except for his "friend" the seller.

Those were my closing words to him last night, basically "If you buy this house, your friend will be the one getting the profit. It will not be you.".

I too am glad he made the right decision...and hope he's learned a bit of a lesson and handles things like this with a little more maturity going forward. *crosses fingers*

[CHANDLERS WISH]

I love the financial adviser payment

You have to hang onto a home for 5 years if you want a good return, simply put...

Yes, 1 year your living in it, no extra taxes well here in Australia anyway, and you need to make $30k in order for it to be worth it..

It takes alot of effort, alot to renovate and most of the time, you find other things wrong, electrical wiring in the wrong place, for instance, or jobs you just can not do yourself, so you have to hire someone.

That's the danger of first time renovations..

For the first time, never buy an old junk box to do up. It's a bit like cars, you think you'll do it but you give up, it gets too hard and you end up paying more, than what you can re-sell it for.. The purpose of those types of homes, is to spend $4k, then rent it out for 5 - 7 years, sell and make your profit.

He made a wise choice not to, whilst the seller is offering $11k, and a lesser amount to purchase, it would cost him more than $11k to do it up properly to match the homes that you listed, so effectively he may have lost the Mortgage repayments..

Rule of Real Estate, when you are first time investors is to rent it, make some profit when the market is good, then with that profit, buy something cheap, spend a little and on-sell, and go from there.

Well what would I know? Having spent 12 years in the Industry

I purchased a 1960''s home, in a specific area, not the best area in South Australia, Adelaide, for instance, as I studied the market over what was making the most over a 3 year period in the cheaper supburbs. I purchased it for $265k... 3 and a half years ago, 4 bed, french doors to pool, from main, BIR's, 2 study areas, a hall, 2 bathrooms, spa bath, pool, shutters, floor boards, reverse cycle, double garage, double carport electric roller doors....

The walls were canary yellow, aqua blue, there were lace curtains, all windows etc, needed sanding back, repainted, old kitchen, poorly grouted bathrooms etc.. But with all of that going on, I figured I would be able to capatilise on it.

Now, we've polished the floors, putting in a new kitchen, knocking out one wall which is gyprock and closing the surrounds in for a pantry, (hall), the pool has been up-dated, floors polished, red and white theme feature walls, curtains, and warm tones throughout, gardens well that's my hobby, are spectacular, garage is being converted into a rumpus room, polished concrete floors, new screen doors, steps painted, pool area turned into a cheap bali look, entertainment area same, basically point being we are doing the work, the painting, the polishing of the floors, the gardens, etc and all we'll pay for is the kitchen but even there by creating a pantry, we've saved on one wall of cupboards for a little gyprock, at present it is worth $340k, that's $80 profit, when completed, $400k... And in all we would have spent around $25k on it..

Problem I have now is we live here and I love the new changes, and my gardens, kind of think I'll use the equity in it, when we finish and purchase an investment property and start again with that one, lol's....

So the thing to consider also is, repayments can they be met, areas that increase faster, floor plan, floor plan, floor plan, the more space you have to play with the more you can create that no one else can offer, therefore, obtain a higher sale and a quicker sale.....

Too long? Yeah sorry, it's my passion lol's...my profession...

CW

[kygirl]

Glad it worked out BD Sounds like he's a great guy and he actually takes your input into mind which is great!!

I had a date last night so I had to watch Greys on DVR. I fell asleep during PP because I'd just been up too late the nights before. I am obsessed although I am having mixed feelings about Greys and now on PP I am wondering how long the Charlotte thing is going to play out. I mean, I realize it was a big deal, but not sure how that's going to wrap up or if it's gonna be all season... But I am glad I can maybe see them closer to when they are shown now

Get some rest

[Texinator]

Ooh, nice frontal lobes, ladies.

(Talking about your brains, in case anybody was getting ready to smack me )