Post by snipsnsnails on Jun 21, 2013 13:06:39 GMT -5
Or should I wander over to MM? I need to just dump this here and get any advice or flames you guys have for me.
Our house is killing us slowly. I was laid off very unexpectedly last fall. At that point, our mortgage was 34% of our net income. High, but manageable for a VHCOL area. Now, it is 51% of our household income! Which basically means, we have just enough to pay our basic bills and need to get out. I've thought about going back to work, but there are some problems with that. Two huge ones being that it's been some time since I left my industry. I left to take the previously mentioned job, thinking I would be there long-term. So, I could potentially go back, but I'm not sure I can cover the high cost of commuting and the super high cost of childcare at this point. I have resumes out. We'll see. Also, going back to work is a complete lifestyle change. To bring in the big bucks again if I can become employed again, I'll go back to a schedule of 6am until 10pm or later. None of my former coworkers are married or have kids. And I'm not exaggerating - exactly none except for the big boss/partner in the firm has a partner and a dog. I'll do whatever I have to do, of course, but I need to know my salary can cover our expenses, of course.
We spoke with a realtor and want to sell. Here comes the problem. We can't bring tens of thousands to the table to sell. We're fine with breaking even, but to break even there are several renovation projects that have to occur to get its value to the point where we will break even. These projects also take thousands of dollars. So, it's like a vicious cycle of needing to throw money that we don't have into things in order to get out.
Ugh, money problems are the total suck.
And, yes, I have some stopgap stuff in place like freelancing, selling things from my former life, consigning, etc.
So, any advice? Commiseration? Flames, even? I'll take anything. I'm especially stressed out today because our car needs replacing and I'm not sure what that means for the budget. Well, I take that back, I know exactly what it means to the budget. Arrrggghh.
hmmm...i'm not the money manager in my household, but i think you can try to sell the house as is and see how it goes. someone may buy it regardless. you don't have to accept an offer just because you received one. and realtors are paid on commission, so that's not a cash outlay up front. just insist on a really good photographer, which i think in the era of everyone internet searching for real estate makes the biggest difference evah.
another option would be to rent out your place to cover your current mortgage and rent something for yourselves that's much cheaper. even if you only drop down to rent = 45% of income, that's better than 51%. i know several people who did this. and in a HCOL area with nice, family-sized digs, you'll be more likely to attract a tenant who isn't going to do damage, etc.
in the interim, you need something in between 6am-10pm and "stopgap." i know you have a lot of community connections out there, especially as a result of your volunteering. so your skills not only expanded at your most recent job, people KNOW you-know you, and are likely to consider you for things that aren't your former 6-10 industry (i have no idea what it was). start putting feelers out there on that one. not knowing what you did before is hampering me here in thinking of suggestions, but having resumes out in your former industry is one thing. pursuing "hey, why not?" is another. you know?
also, leaving a flaming bag of poo on the porch of your former boss/friend/jerkface.
Post by snipsnsnails on Jun 21, 2013 13:16:19 GMT -5
kessie - no, I appreciate the suggestion! Unfortunately, one of the main renovation project that needs to be completed to boost the value is the lower level which is where our extra bedroom is. So, right now it's framed out, but not insulated or drywalled, painted or with flooring.
Post by snipsnsnails on Jun 21, 2013 13:21:17 GMT -5
All good thoughts, cville. I know what you say is true. My main hindrance in the work piece is the exorbitant cost of childcare here. But no one expects to get laid off when they're 5 months pregnant, I suppose. My fault and hindsight is 20/20.
In order to make the salary I would need to cover those costs, I think I would have to go back to NYC. CT salaries in the entertainment industry (I did entertainment PR and would go back to that or get on the agent track) just aren't happening. I definitely don't need to just sit back and twiddle my thumbs, I do need to verify and solidify that thought. I've got to start networking and talking to my peeps here in CT, not just in NYC.
yeah, you're ms. CT now. own it! and entertainment PR? damn. that's like every skill you need. organization? yeah. being professional? sure. knowing the right people AND getting along with them? yes. money management? yup. time management? always. customer/client interface? every day!
you could sell that as anything. truly.
not that this is in any way awesome, but to avoid childcare costs could you look into something in the evenings or on the weekends such that your husband could watch the kids (i can't remember if he travels)? i'm trying to think of places who need smart, hardworking, connected people 24/7. hospitals, retail management, hospitality.
Post by snipsnsnails on Jun 21, 2013 13:29:58 GMT -5
Thanks, kessie and thanks, cville. I appreciate the advice. I really do. When you're stressed, it's nice sometimes to just be heard.
And, for sure, cville! He does travel and we, unfortunately, don't have family in the area to help out if I were to do an evening gig, but I do think I can make something work. Heck, if I have to, I can make anything work.
You have this amazing personality and you SCREAM client interactions. You are a joy to be with and it's clear that you have that humanity that many people just will never have.
I think that right now (and you know this) the entertainment business will produce challenges.
I know that this is obviously my bias, but have you considered communications within other types of industries? Your area of CT has a TON of pharma/biotech/etc that are always in need of people in PR that are social media savvy/marketing strategy and have that "it" factor that sells.
And you have that.
I know that your previous life was fun as hell. I mean, I'd want it too, and if this is something you really want, don't let the children be a hinder, because things could be done to take care of that. I guess it comes down to how much you value/want to continue a career (I don't mean that in a negative way, but it sounds dreadful).
You will make it, that I'm sure of, whatever you decide.
(And I'm not saying to go for a PR position in the life sciences R&D industry, but rather there's so many industries that you might not be considering because it hasn't been on your radar that could absolutely use your talents - reinvent yourself and all that jazz).
I don't know anything about houses, so I can't help you with that, but I wish you success in everything related to this.
Post by snipsnsnails on Jun 21, 2013 13:31:51 GMT -5
Oh, gretchen, thanks! I mean it sucks and I am so sorry you're in this boat, but I feel you. I keep telling DH that he makes good money. We shouldn't be struggling as much as we are. I feel the same way - this house was a huge and costly mistake.
Post by snipsnsnails on Jun 21, 2013 13:37:10 GMT -5
nama - not just closing costs, but the difference in what we still owe on our mortgage compared to what we would be able to get for the house. We're not underwater - we're kind of right at even at this point or just below. Then when you add in conveyance taxes on a $$$ property, it adds up. But the closing costs on the sellers end is a good thought. Thanks!
And, Moe, I need to pick your brain, for real. It's not that I need to go back to the former life. I mean, I'm fine if that's what I have to do. I'll make it work. It's more just that it's the closest thing to a sure thing for me, you know? By that I mean, it's what I know and I know that I'm good at it. If the money follows, I'll do it and be fine with it.
You're right. I don't know enough about the other industries. Obviously, non profit, but that's not going to pay my bills. I'm going to investigate some other avenues and see what that looks like. Thanks!!
Post by hopecounts on Jun 21, 2013 13:58:51 GMT -5
Do you have a budget/tracked all your spending? Not that you'll come up with a huge amount but you might find places to trim that will help in the interim. Can you cut/reduce cable? Phone plan, etc? Do you know anyone who is handy and could help finish up the extra room and with some of what needs doing (depending on what that is? My FIL laid our wood floor. Dry walling is hard and needs a professional but painting is NBD, that kind of thing.
Post by snipsnsnails on Jun 21, 2013 14:00:40 GMT -5
sparky - we break even with our scaled-back budget, but we are not saving beyond a minimal retirement savings at this point. We estimate we need to come up with about 15-25K to unload the house, whether it's through bringing money to the table or completing the projects to up the value.
So, yes, I could definitely find a nighttime thing and work it out with DH's demanding job and travel. That's on the table! I was hoping to get my kiddo down to a reasonable nursing schedule, so that formula costs didn't take up too much of a line item on the budget. I think we're there now.
Do you have a budget/tracked all your spending? Not that you'll come up with a huge amount but you might find places to trim that will help in the interim. Can you cut/reduce cable? Phone plan, etc? Do you know anyone who is handy and could help finish up the extra room and with some of what needs doing (depending on what that is? My FIL laid our wood floor. Dry walling is hard and needs a professional but painting is NBD, that kind of thing.
Yes! To the penny! I'm a little neurotic about it - ha. Probably why I am stressed and DH is in la-la land sometimes.
But, for sure, and we've scaled back to almost necessities. There is about $300 personal care/non-essentials a month still in there, but we can certainly cut that back, too. I think that still won't necessarily do anything but help us tread water for longer, but every little bit helps!
And, yep, this is definitely great thinking! That reduces the costs to just supply costs which would help out, too!
sparky - we break even with our scaled-back budget, but we are not saving beyond a minimal retirement savings at this point. We estimate we need to come up with about 15-25K to unload the house, whether it's through bringing money to the table or completing the projects to up the value.
So, yes, I could definitely find a nighttime thing and work it out with DH's demanding job and travel. That's on the table! I was hoping to get my kiddo down to a reasonable nursing schedule, so that formula costs didn't take up too much of a line item on the budget. I think we're there now.
With your scaled back budget, probably bringing in a couple hundred a month may take some of the strain off until you can get more equity in? It kind of depends on how close to break even you guys are with your monthly living expenses/etc.
I think moe is wise. I don't know you all that much, but if you were awesome at your entertainment pr gig, you would be able to translate that to a million different positions. Also, I wouldn't totally write off non profit work. I work at a large non profit, and salaries here are quite good actually. Definitely depends I the size. Good luck.
Post by shopgirl07 on Jun 21, 2013 15:21:01 GMT -5
Not sure where in CT you are but I'm in Boston and the real estate market is super hot right now. If it's under a million it's selling within a day, often times over asking. So perhaps you could get more for your house than you think?
Post by snipsnsnails on Jun 21, 2013 15:54:29 GMT -5
pantsparty - at least I had the cojones to get my mulch under my regular username, not some ae! 'Let them eat, mulch!'
And jigsy , interesting, thanks for the tidbit. There's a particularly large non-profit, Save the Children, in coastal CT/NYC metro that several friends work for - perhaps I'll pump them for some more info rather than totally write it off.
Thanks, shopgirl07 - we're just outside of NYC and our market is definitely moving here. We had a realtor come in, but maybe she was being particularly conservative. Maybe we just need to put it on the market and see what happens. Roll the dice!
. Maybe we just need to put it on the market and see what happens. Roll the dice!
I say do it. Worst thing that can happen is you have a super clean house more often than not. You don't have to accept and you can continue to do as much as you can to get stuff done
Are you on linked in? Sign up and connect with EVERY single person you have ever worked with, creep their connections and see if you know any of them.
I'm willing to bet $$$$$ that they all remember you and your awesomeness and will be interested to see what you are up to.
If you decide to test the market and put your house up for sale, my advice would be to try it as For Sale By Owner first. You have to do a bit more work and some advertising yourself but if you are tight with your mortgage payoff, this could make or break the deal. The seller almost always pays all of the realtor costs. Where I live, the typical realtor commission is 6% of the sales price (a 3-3 split between the listing and selling agent.) That adds up quickly. Good luck!!
So sorry you're dealing with this snips - I know how stressful and frustrating it can be.
Since I know zero background...is your loan a freddie or fannie loan? If it is and you got it before June of 2009 you could take advantage of the Harp program and refi...again I'm not sure what your loan rate is, or if that would help - but maybe something to look into if you qualify (http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx)
Are any of the renovations something you could do yourself in order to try to up the value with minimal cost?
I would also personally interview several realtors and get more opinions about your house - do some of your own research too - search on remax.com or realtor.com or one of your local real estate sites, and put in criteria that is similar to your house (lot size, square footage, # of bedrooms, # of bathrooms, etc.) and see what houses are on the market for (prices have even gone up since January)...if you haven't already done all that already.
I definitely suggest talking with several realtors. We put our house on the market and 2 days later we had 3 offers on it, all over asking price. The first realtor we talked to when we started out suggested we put our house on the market for $25,000 less than what we ended up putting it on the market for, and her suggested price was $35,000 less than what our offers were for. She was very adamant that it would sell for what she thought it would - she was very wrong, ha ha
As others suggested, you could look into renting your house. Sometimes that works, and sometimes it doesn't - it all depends if you could rent something fairly cheap, and if the P&I + Taxes, etc. on your house would be covered, or mostly covered, by a rental payment.
Otherwise, I think I would just search for jobs that you could do that would cover the expense of childcare and commuting and provide extra to help pay the mortgage down to the point you could sell it - it sounds like maybe you have some really valuable skills and you just need to put a great resume together, get on LinkedIn and network like crazy
Post by snipsnsnails on Jun 21, 2013 21:41:05 GMT -5
Dang, you guys are the best. Hugs to you all! And kisses! And to the other 1000+ viewers, what the heck, hugs to you, too!
Really, though, I appreciate it all. Bonita , I'm definitely going to do even more research to see how the housing market is playing out in my neighborhood this summer. And maybe even get another realtor over to assess the house.
And, @imback , for sure we need to lessen our housing if I don't go back to work. That's what started this whole thing! We could either go back to renting for a bit or move somewhere else, but DH does enjoy his job and that is worth a lot to us, ya know?
Oh man. I'm sorry you're in such a tough spot! This has probably already been suggested, but you could probably get a part time gig during your H's off hours to help with the mortgage/renovation.
Do you have a graduate degree? Teaching night classes at a community college can be lucrative.
Dang, you guys are the best. Hugs to you all! And kisses! And to the other 1000+ viewers, what the heck, hugs to you, too!
Really, though, I appreciate it all. Bonita , I'm definitely going to do even more research to see how the housing market is playing out in my neighborhood this summer. And maybe even get another realtor over to assess the house.
And, @imback , for sure we need to lessen our housing if I don't go back to work. That's what started this whole thing! We could either go back to renting for a bit or move somewhere else, but DH does enjoy his job and that is worth a lot to us, ya know?
I do. Definitely have to see what will benefit you the best. Maybe move and lower costs if you decide to continue to stay at home. We decided T would work in the hat so things could balance out.
I mentioned so many things though, like move to West Hartford--buy, move to North Haven--rent, Orange--buy. None of those seemed to have appeal though. As I mentioned before we were bleeding 1K in savings a month prior to changing things around.
Dang, you guys are the best. Hugs to you all! And kisses! And to the other 1000+ viewers, what the heck, hugs to you, too!
Really, though, I appreciate it all. Bonita , I'm definitely going to do even more research to see how the housing market is playing out in my neighborhood this summer. And maybe even get another realtor over to assess the house.
And, @imback , for sure we need to lessen our housing if I don't go back to work. That's what started this whole thing! We could either go back to renting for a bit or move somewhere else, but DH does enjoy his job and that is worth a lot to us, ya know?
I do. Definitely have to see what will benefit you the best. Maybe move and lower costs if you decide to continue to stay at home. We decided T would work in the hat so things could balance out.
I mentioned so many things though, like move to West Hartford--buy, move to North Haven--rent, Orange--buy. None of those seemed to have appeal though. As I mentioned before we were bleeding 1K in savings a month prior to changing things around.
I hope things come together and get better soon.
Yep, I know that you know how exorbitant it is in Fairfield County. We'll definitely get through it and be ok, I just wish it were a little quicker and a little easier sometimes. Ha!