by Hal Underbrook on March 10, 2010
Families that have to move from homes into apartments as the funds don’t bounce back quite the way they should are finding that once they adjust to certain ideas, the move doesn’t seem like a negative aspect at all. The biggest problem that many families face is figuring out exactly what they are to do with all the stuff that they own. When you move from a house to an apartment, only about 1/3 of your belongings will comfortably fit.
There are certainly some new ideas to consider. Your Dyson upright vacuum cleaner will clean fewer floors in record time. The Black Decker food processor as well as other appliance might be stored up and out of the way, but you’ll have a neater kitchen area. If you sell the belongings that are in the home storage boxes you might be happily surprised at the boost of additional money you end up with.
Whether these specific ideas sound like a good trade off to you or they sound like rose colored glasses, the point is that creative thought can make this a good deal. If you take the time to consider just a few basic points, your family will make a smoother transition and everyone will be able to take to the change with a smile.
Moving from a full house into a duplex can be a little but less of an adjustment for you and your family. There is often a bit less structure when it comes to things like sharing shed storage or putting up play toys in the back yard. Limiting your contact to just one direct neighbor can also help you all adjust to having someone else to take into consideration.
Storage is not terribly expensive. If you’re going to be living somewhere for three years or more, you might want to consider why you’re hanging on the stored material. Stuffed furniture is often ruined when placed in storage. Other issues include the lack of accessibility. After three years many people don’t even know what they are storing or why they are storing it.
If your kids miss the freedom to play in the back yard, instead of taking it as a loss take it as a time to set up family park days. If you suddenly have to walk a dog instead of letting him roam around out back think of it as a new and improved exercise plan.
When you move from a home into an apartment you may see yourself as having failed. It’s not the case. Many families live very happily in apartments and the reduced living expenses can be enough of a relief that the entire family gets along better. Stress reduction can lead to happier families.
by Hal Underbrook on March 10, 2010
I am not sure that there is a better business than real estate but I am also not sure if there is a tougher one in today’s market. Home values countrywide are incredibly low and continuing to drop in places. Those in really bad shape now are the ones that bought five or so years ago when homes were way overpriced. Those in really, really bad shape are those who also got into a mortgage that seemed like a good idea at the time but made little sense in the long-term.
Here in California, where I live, people were literally and figuratively banging down doors to get into homes five years ago. And they were paying way more than the homes were worth. I was one of these people. Having just moved to LA and wanting to buy something rather than rent, I spent way too much on a home and got into an interest only mortgage.
I knew I couldn’t afford the place I ended up with. But, they gave me the mortgage so maybe they knew something I didn’t. My house was overpriced and my mortgage was way too pricey and not a good deal at that. I had little equity and no more coming anytime soon. Then, my wife and I had our second daughter and my wife left her job to stay home. We lost her full-time salary and were heading up-creek further without a paddle. We were literally sitting on collapsing furniture with home space heaters at our feet because we couldn’t afford to repair anything when it broke.
As was bound to happen, the housing market and economy collapsed. Our home devalued quickly but our mortgage payments did not. Now, not only could we not afford the home, we couldn’t sell it at a profit and barely sell it at a loss. We went through a bankruptcy to get rid of our debt and decided that to free ourselves up from all financial burdens, we would sell the home through a short sale if we could.
We are currently doing much better renting a home. I hate that we went through what we did but, had we not, we may not have learned some valuable lessons.
I would buy an income property, something that I could put a renter in that would cover my mortgage. I would buy a slight fixer-upper and spruce it up with some cheap home decor accents and maybe a coat of paint. But, most importantly, I would buy something below my price range, taking the renter into consideration and get a mortgage that earned equity and had a good rate either fixed or with a long arm.
I wouldn’t want to do this again and have to worry about covering mortgage monthly without the income to do it. I would own something with obvious value and not sell until it was a truly decent resale property regardless of the economy.
