| Posted By |
Message |
| Pages: [1] 2 |
Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
|
hey...those that purchased homes and started work immediately
can I ask a personal question?
how did you pay for it? did you use savings or tap immediately into the equity in the home (earned through your dp or whathaveyou)?
I am curious b/c we are weighing our options now, and it seems like people do some real extensive work from the jump.
thanks!
|
Posted 8/13/08 2:50 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
Katie111806
Team Pink!
Member since 12/06 5349 total posts
Name:
Katie
|
Re: hey...those that purchased homes and started work immediately
We specifically have left a cushion in our savings for doing immediate work on the house, so that's what we are using.
|
| Posted 8/13/08 2:52 PM |
| |
|
JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
|
Re: hey...those that purchased homes and started work immediately
we started work right away and we had money in savings thank god. otherwise, for use, we wouldn't have bought the home knowing we had to do lots of work to it. We also lived in an apartment that we didn't have to pay rent.
|
| Posted 8/13/08 2:53 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: hey...those that purchased homes and started work immediately
Savings and tax refund $$ (we closed in early may so it was perfect timing).
|
| Posted 8/13/08 2:53 PM |
| |
|
SuzyQ
Mama to 3!?!?!?
Member since 7/06 8069 total posts
Name:
Susan
|
Re: hey...those that purchased homes and started work immediately
Posted by Katie111806
We specifically have left a cushion in our savings for doing immediate work on the house, so that's what we are using.
Same here. We're just doing a few things before we move in - things that are so much easier to do when the house is empty (refinish HW floors, paint some of the rooms) I have a list of other projects that we can wait on and I'm hoping that we can tackle them over time.
|
| Posted 8/13/08 2:55 PM |
| |
|
MetsGirl07
LIF O2 Vendor
Member since 12/07 16202 total posts
Name:
Deanna
|
Re: hey...those that purchased homes and started work immediately
we had extra money in our savings..
|
| Posted 8/13/08 2:59 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: hey...those that purchased homes and started work immediately
you normally need to wait 6 to 12 months before a bank is going to give you a HELOC or Loan
you can't immediately tap into your DP money- esp in this market- banks are not going to be so giving
|
| Posted 8/13/08 3:05 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: hey...those that purchased homes and started work immediately
I had the cash but I elected to use 0% credit cards because I still wanted my cash to earn interest.
|
| Posted 8/13/08 3:05 PM |
| |
|
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
Re: hey...those that purchased homes and started work immediately
We used savings. It was something we budgeted for separately. Additionally, our house was less than our budget by a lot because it needed work. We put the same %age down, but it worked out to be less money (which allowed even more in savings for the improvements we did).
You'd likely pay a higher interest rate on a HELOC than your primary mortgage - or even your second mortgage in an 80/10 loan scenario. If your mortgage rate is lower than a HELOC (which it should be), then you're better off with a smaller down payment and using savings for the work. (Take into consideration PMI if applicable and/or the rate on a second mortgage if you do an 80/10 or an 80/15 loan.)
Also, bear in mind that all the improvements you want don't necessarily have to be done right away. Prioritizing what needs to be done first and spreading the work out (if you can) helps ease the cost of the renovations, too.
|
| Posted 8/13/08 3:09 PM |
| |
|
Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
|
Re: hey...those that purchased homes and started work immediately
thanks ladies.
the house itself really "needs" minimal work.
anything we do would be purely as a want and/or for aesthetic reasons.
with the exception of blowing on another door on the shed to make it into a garage...nothing major.
I am looking ahead though..since we do plan in the somewhat near future to add a bathroom and a PHAT inground pool  
|
| Posted 8/13/08 3:11 PM |
| |
|
Ambersmom
Straight up nasty
Member since 5/05 7740 total posts
Name:
Sharon
|
Re: hey...those that purchased homes and started work immediately
Posted by Katie111806
We specifically have left a cushion in our savings for doing immediate work on the house, so that's what we are using.
That's what we're doing. We don't have to do a TON of work per say, but there is stuff that needs to be addressed (paint/spackling/redoing the dining room floor, fixing the fireplace, replacing back door). It's more the physical labor that I'm worried about. The former owners were PIGS
|
| Posted 8/13/08 3:38 PM |
| |
|
SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
|
Re: hey...those that purchased homes and started work immediately
We left money in our savings to do the work.
|
| Posted 8/13/08 3:40 PM |
| |
|
ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
|
Re: hey...those that purchased homes and started work immediately
Posted by Kara
We used savings. It was something we budgeted for separately. Additionally, our house was less than our budget by a lot because it needed work. We put the same %age down, but it worked out to be less money (which allowed even more in savings for the improvements we did).
You'd likely pay a higher interest rate on a HELOC than your primary mortgage - or even your second mortgage in an 80/10 loan scenario. If your mortgage rate is lower than a HELOC (which it should be), then you're better off with a smaller down payment and using savings for the work. (Take into consideration PMI if applicable and/or the rate on a second mortgage if you do an 80/10 or an 80/15 loan.)
Also, bear in mind that all the improvements you want don't necessarily have to be done right away. Prioritizing what needs to be done first and spreading the work out (if you can) helps ease the cost of the renovations, too.
Well said! We had the same situation - we set up a budget and found a house which was actually below the bottom end of our range (which we honestly didn't think would ever happen!)
|
| Posted 8/13/08 3:43 PM |
| |
|
TTCbaby
Twin mommies are twice as nice
Member since 4/08 1861 total posts
Name:
J
|
Re: hey...those that purchased homes and started work immediately
We were able to mortage 100% of the cost plus an additional $10,000 that we used towards our closing costs. (We bought our house for $360k and took a mortgage for $370K). We then were able to use money we had in our savings to do extensive house work since the house needed it badly!!
|
| Posted 8/13/08 3:46 PM |
| |
|
SUNSHINE
My LuLu <3<3
Member since 5/05 1372 total posts
Name:
T
|
Re: hey...those that purchased homes and started work immediately
We set $$ aside in our saving to do the work right after closing.
|
| Posted 8/13/08 3:46 PM |
| |
|
BlueDiamonds
mommy to 3 boys
Member since 2/07 3885 total posts
Name:
proud mommy
|
Re: hey...those that purchased homes and started work immediately
Posted by SUNSHINE
We set $$ aside in our saving to do the work right after closing.
same here. although, we didn't have plans to do much and the things that we did were labor intensive and not too much money. we plan to use savings and tax return money for all of our future improvements.
|
| Posted 8/13/08 3:50 PM |
| |
|
Smileyd17
kids
Member since 5/05 20997 total posts
Name:
Mommy
|
Re: hey...those that purchased homes and started work immediately
We had savings- this money was set aside for that reason.
We walked into a fixer upper- and luckily with my DH being so handy, the money went far..we redid the entire house.
It took about 8 months.
|
| Posted 8/13/08 4:05 PM |
| |
|
dandr10199
Grace is growing up too fast!
Member since 10/05 11561 total posts
Name:
Dina
|
Re: hey...those that purchased homes and started work immediately
We got back a seller's concession at closing of $12K after closing costs. I negotiated the H3LL out of my house ...and DAMN proud of it! (22% off asking and a $12K seller's concession) 
After we used that $$$ we paid as we went or saved up a bunch and then did one room with the $$. Ours was a fixer and did a TON of work before we moved in. It is still a work in progress.
I never posted before and afters...should I? The house was a REAL POS when we bought it.
|
| Posted 8/13/08 4:42 PM |
| |
|
carlowlou
loving my babies!
Member since 4/08 4594 total posts
Name:
Jen
|
Re: hey...those that purchased homes and started work immediately
we will use our savings...we specifically put less money down so that we had some left over for furniture and renovations
|
| Posted 8/13/08 4:43 PM |
| |
|
2Pisces
Life Coach
Member since 2/06 3337 total posts
Name:
Paige
|
Re: hey...those that purchased homes and started work immediately
Our renovations were done my my hubby and some family memebrs, friends, so we didn't have labr costs. The materials were either paid for on credit cards or cash.
|
| Posted 8/13/08 6:33 PM |
| |
|
Tah-wee-ZAH
Kisses
Member since 5/05 15952 total posts
Name:
|
Re: hey...those that purchased homes and started work immediately
We are older so we had more savings and never had the crippling college loans some younger than us have. DH already owned a previous home.
We put down a large downpayment and took a sizable amount out of savings. Our house was prettty much a gut job. Contractor was there hours after closing. Four months later we moved in.
|
| Posted 8/13/08 6:48 PM |
| |
|
Sandy55
My family ROCKS!!!
Member since 2/08 1219 total posts
Name:
Sandy
|
Re: hey...those that purchased homes and started work immediately
We will probably be eating TV dinners or cereal for months before we even start spending money to update this house we have bid on.
|
| Posted 8/13/08 10:13 PM |
| |
|
BaroqueMama
Chase is one!
Member since 5/05 27530 total posts
Name:
me
|
Re: hey...those that purchased homes and started work immediately
Posted by ave1024
I had the cash but I elected to use 0% credit cards because I still wanted my cash to earn interest.
This is what we did.
|
| Posted 8/13/08 10:15 PM |
| |
|
~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
|
Re: hey...those that purchased homes and started work immediately
we saved about 30?%...put 20% down and used the remaining 10% for renovations, savings, etc.
|
| Posted 8/14/08 8:53 AM |
| |
|
MrsPorkChop
Twinning!!
Member since 5/05 9941 total posts
Name:
Missy
|
Re: hey...those that purchased homes and started work immediately
i used savings and borrowed money interst free from my company- which i pad back t othem off my salary each month
they were very generous about giving me that loan
|
| Posted 8/14/08 9:24 AM |
| |
|
| Pages: [1] 2 |
