House buying mistake

Discussion in 'I Have a Question...' started by Ferret, Sep 9, 2013.

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  1. Ferret

    Ferret Well-Known Member

    For the last 5-6 years I've been living in apartments and decided to make the jump to buy a house, as I had a reasonable downpayment and would renting out the basement apartment. What I didn't realize though that advertising an apartment and finding someone is tough around here and it seems everyone is only interested in new houses. I definitely don't make enough per year to afford this house on my own, which is the reason why I bought this type of unit. With my first mortage payment due in October I wonder if this was a good decision to make. Currently I'm living in a 200 sq ft studio apartment with heat and light included for $600/month, and my mortgage is over twice that amount with utilities extra. The apartment however isn't in the best spot in town and the landlord rents the rest of the place out to whoever, so there's a lot of shady people around all the time. In the winter the driveway hell to shovel as it is on a busy street that gets plowed by the city several times a day, as it is one of the main roads. Should I have given up this apartment for something a little bigger with more space, and have I made a good decision in all of this? I really love to travel and thought that this move wouldn't affect my ability to save for a vacation, but now that I'm locked into this mortgage I feel like I'm going to be house poor :(.
     
  2. total eclipse

    total eclipse SF Friend Staff Alumni

    owning a home something that is yours is nice hun your space but it is so difficult to keep payments for mortgage and heat and hydro and taxes too I do hope you get someone in to help you Maybe if you can find a young person in your area to do some shoveling for you
     
  3. Acy

    Acy Mama Bear - TLC, Common Sense Staff Member Safety & Support

    Hi, Ferret.

    I can understand choosing a bigger space and a nicer area. I hope this move works out for you.

    Sounds like the best bet is to find a renter to help with costs if you are locked into your purchase. Can you do up an ad for the rental space and put it in the local paper? Also, if your corner store or grocery store has a bulletin board, you could post a notice there that you have a space to rent. Word of mouth can work out too - tell your friends to let their friends know you have a space to rent.

    If you cannot manage the mortgage, you might need to speak with financial advisor about how to reduce costs and maybe arrange smaller payments.

    All the best, and again, I hope this works out for you, hun!
     
  4. Ferret

    Ferret Well-Known Member

    I made a mistake, thinking I could offset my mortgage costs by renting out the basement apartment. My mortgage is due on October first, a little shy of $1200/month, and right now the apartment sits empty. I haven't gotten any further interest in it, the last one today told me she had already found another place. I have emergency savings but to be honest I wanted to leave that savings to something that I really need, not to cover mortgage costs like this when the whole point was for rent to share some of the cost. I'm not sure what to do now. I have to leave my little apartment which doesn't cost that much compared to this. Feeling very anxious and frustrated with myself for doing something so stupid.
     
  5. Acy

    Acy Mama Bear - TLC, Common Sense Staff Member Safety & Support

    Hi, Ferret.

    I understand your concerns. Paying the mortgage/rent isn't our first choice on how to spend our savings. I hope you find a renter soon so you don't actually have to use your savings.

    Let us know how you're doing. :arms:
     
  6. Ferret

    Ferret Well-Known Member

    I still haven't found anyone. I've interviewed one tenant so far and her references were fine, but then when I asked for proof of employment, she backed out. I have some others interested but I'm not too sure about them. Maybe I shouldn't have bought the house. I'm not sure what I was thinking. I thought it would be better to stop renting but it has cost a lot more this way then if I just had to keep renting. I'm in a very low mood tonight and I don't know what to do with myself. It feels like every decision I make to better myself turns out to be a costly mistake.
     
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