A Closing and a Closure and an Opening

[catherine]

Closing: We closed on BILs house on Friday! It all went very smoothly. Only hanging thread is the need to get rid of my MIL's old, oops, I mean "mid-century modern" bedroom set. BIL is staying here through the holidays, but before New Year's will be going on a trip to his high school best friend's home in San Diego. He's always wanted to live in SoCal so he's going to investigate his options there.

Closure: I retired ALL my serious debt--$134,000 worth. I just have some regular credit card debt to pay off, and DH has a $3k medical bill. I'm excited but it hasn't hit me yet. But as you guys know, that was a LOT of very, very burdensome debt, and IT'S GONE!!!! I've kicked off the ankle ball and chain, but I think I'll be more excited when I unlock the handcuffs, too.

Opening: You know what they say about doors closing and windows opening. The precise moment we were closing on the house I got an email from my Vermont realtor that the owners are readying the Grand Isle house for sale and it will be back on the market in a week. I am really of two minds on this whole thing. On the one hand, it feels like all these little coincidences are adding up to a potentially wonderful opportunity. 30 minutes from the kids, a fabulous community-centric life in a beautiful town in Vermont. A simple life all ready to go in terms of permaculture and gardening possibilities.

But then I think, do I want to overlap two homes/two mortgages? Is that wise? I feel I CAN do it--the mortgage on this house is one third of what I was paying to the IRS. But do I WANT to do it? Is another house another chain? Or will it pave the way for me to release the house in NJ next year? So many questions.

My realtor invited us to her annual Christmas party. She lives on the island, too. I think I may go up and meet people and get a better feel of the vibe. Of course, going to a Christmas party might skew my perception of life there, but it also will help me read my gut.

[Williamsmith]

I don’t envy your decision. But I don’t doubt that you will eventually do what’s best for you and DH. You seem to be wonderfully balanced between the critical thinking it takes to make choices and the emotional connection to your heart that it takes to define true happiness. My best wishes for your future and congrats about ridding the ball and chain.

[razz]

Wow, WS, you have phrased it so beautifully that I can only say- " +1 to Catherine and her family".

I don’t envy your decision. But I don’t doubt that you will eventually do what’s best for you and DH. You seem to be wonderfully balanced between the critical thinking it takes to make choices and the emotional connection to your heart that it takes to define true happiness. My best wishes for your future and congrats about ridding the ball and chain.

[iris lilies]

This is very very good news, yay!

I dont think having two mortgages is the worst thing in the world, as long as you are actively readying your NJ house for sale. I mean, if thats what you are planning. You arent thinking of maintainng two houses, a winter and summer one, right?

And mortgage money is such a freekin waste, those first few years all you pay is interest, there is little building of equity. You might as well rent to own with a clause to get out of it asfter a year. The money you sink into it would be pretty much the same.

[JaneV2.0]

Congratulations!

I agree about the timing--very serendipitous.

[ToomuchStuff]

And mortgage money is such a freekin waste, those first few years all you pay is interest, there is little building of equity. You might as well rent to own with a clause to get out of it asfter a year. The money you sink into ot would be pretty mich the same.

Isn't renting what caused the owners of the home she is looking at, to be in their current situation? (trying not to be foreclosed on)
I expect they are not going to be willing to rent at this point.

[iris lilies]

Isn't renting what caused the owners of the home she is looking at, to be in their current situation? (trying not to be foreclosed on)
I expect they are not going to be willing to rent at this point.

yes, probavly so, but the OP should maybe consider that as a strategy anyway.

[catherine]

yes, probavly so, but the OP should maybe consider that as a strategy anyway.

Yes, you're right, IL. I've looked into it, and there are three different ways to go about it (aside from just purchasing). Rent-to-own, lease option, and lease purchase. I think what I would be interested in is a 6 month lease with option to buy at the end of the 6 months. They would commit to our purchase price in advance.

This could be a win-win. It would give them 6 months of cash flow instead of all the cash sitting around in escrow while we get mortgage approval, inspections, title searches, etc. And it would give us a chance to ensure that our credit report accurately reflects the pay-offs, and we would be able to stash some money along the way.

With regard to what you said about the cost of mortgages--you are so right. It's ridiculous how much you pay in interest in the early years.

But 15-year mortgages are different. We refinanced to a 15-year fixed in 2013, and we've already paid down 66k of PRINCIPAL! One of Dave Ramsey's best rules IMHO is to always get a 15 yr mortgage (or less) if you can afford it. So I am going to try to do the same with this house, even though I plan on paying off the mortgage on the VT house when we sell NJ (still not sure exactly when that will be. My guess is between 18 months and 4 years).

[rosarugosa]

Congratulations on retiring the debt, Catherine!

[Tenngal]

re: the mid-century modern bedroom furniture. This stuff is "in" right now. Should be able to sell quickly.

[catherine]

re: the mid-century modern bedroom furniture. This stuff is "in" right now. Should be able to sell quickly.

Exactly! It went in one afternoon.

On another note: we JUST learned 10 minutes ago that our offer on the Grand Isle home was accepted!!!!

[Tybee]

Exactly! It went in one afternoon.

On another note: we JUST learned 10 minutes ago that our offer on the Grand Isle home was accepted!!!!

HOORAY!!!!!!

[razz]

Wonderful to hear!

[JaneV2.0]

A new adventure begins!

[herbgeek]

Grand Isle! One of my favorite spots! Congratulations.

[pinkytoe]

Sounds like things are moving right along. Does this mean your house goes on the market now?

[Lainey]

Fantastic, Catherine. It's been a long road but you should be relieved that all of your hard work has paid off and now you can start enjoying your life as you wish.

[Float On]

Congrats all the way around!!

[SteveinMN]

Lots of progress, catherine! Congratulations, especially on the Grand Isle house. Forward!

[catherine]

Sounds like things are moving right along. Does this mean your house goes on the market now?

We will start the process by attacking the stuff we need to get rid of. Then we'll make minor repairs/improvements. I'm not in a huge rush. I'm guessing we could hold on to our house for 18 months/two years, which isn't a problem for me. This area is appreciating and I'll just continue to bank equity.

I know that financially it doesn't seem smart to hold on to two homes, but this is more of a "main residence" vs "summer residence" situation, no different than people who have a condo in Florida. But as time goes on and my desire or ability to work declines and I am no longer willing to support the NJ house (within 2-4 years), we'll sell, and by that time I'll have downsized and learned how to contain ourselves and our belongings in 700 square feet full time.

I'm very excited, however. And my kids are over the moon about it.

[Williamsmith]

Catherine, could you describe the Vermont residence in more detail? And contrast it to your current house. If you have the interest in doing so. I’m curious about what lifestyle changes you will have to consider when you finally make the move a cast off the NJ home. I assume you could continue to work he same job from Vermont? Thank you.

[nswef]

congratulations, Catherine. Sounds like an excellent plan to encourage downsizing.

[catherine]

Catherine, could you describe the Vermont residence in more detail? And contrast it to your current house. If you have the interest in doing so. I’m curious about what lifestyle changes you will have to consider when you finally make the move a cast off the NJ home. I assume you could continue to work he same job from Vermont? Thank you.

I want to keep myself anonymous, otherwise I'd share the link, but here's the description of the property:

This two bedroom year round lake front home is ready for you to move right in! The home has been completely updated and renovated with new appliances, windows, fresh paint and thoughtful additions. All the work is done! Sited on a corner lot facing Lake Champlain you'll love the views from your living room and enjoy the 530 feet of shared direct lake front and 1.7 acres of common land. There is a shared concrete dock for your boat and the sunsets are incredible. There's plenty of storage space for your toys in the 4 out buildings and most of the furnishings and the riding mower are included!

Here are some pics. House is 668 sq ft. My home is 1900 square feed, two stories, two homes office, 3 bedrooms, 1.5 baths, quarter acre in a typical subdivision. This new house has two bedrooms, small living room, dining area, kitchen 1 bath.


202420252026

[Williamsmith]

I will restrain myself from asking too many questions. It’s my nature....you understand. That’s a cute bungalow but you are going to be doing some serious downsizing. I have similar tastes but it would be located in the mountains as a hunting camp.

What kind of taxes go with this.....any shared fees......water source.....sewage facilities....electric or gas heat.....basement.......fireplace?

I know, I promised not to ask.

[iris lilies]

That is cute and looks like a place to have fun.

gads, I am thinking it was just two or so years ago that your husband couldn't see leaving your NJ house at all. Now he is going off on adventure to a new place. Isnt he the guy who is gregarious? I can see him being the life of the party with neighbors in that common space you all share. He will organize garden work days and harvest events and potluck get togethers and etc.

I will bet that you find much more community there than you now have in your suburban place.

[pinkytoe]

Cute house! If you want to continue working and can swing it financially, always good to have both options. I have enough complications with one house:)

[Geila]

Congratulations! That is a cute house. You might find that you don't miss that extra space at all.

[catherine]

That is cute and looks like a place to have fun.

gads, I am thinking it was just two or so years ago that your husband couldn't see leaving your NJ house at all. Now he is going off on adventure to a new place. Isnt he the guy who is gregarious? I can see him being the life of the party with neighbors in that common space you all share. He will organize garden work days and harvest events and potluck get togethers and etc.

I will bet that you find much more community there than you now have in your suburban place.

OMG. On my way to my Master Gardeners class I told him to set up a relationship with the lawyer and inspector our realtor recommended. Just so happens the lawyer's last name its the same as my Scottish grandmother-in-law's. ALL HE HAD TO DO was email the realtor "talked to lawyer. send contract." But no. I get home to see that he sent a TOME of an email to the realtor, inspector and lawyer, inviting them all to our house, and for rounds of golf. He also quoted Bob Dylan:

Oh to dance beneath the diamond sky with one hand waving free
Silhouetted by the Loch Champlain,
circled by the circus sands.
With all memory and fate driven deep beneath the waves
Let me forget about today until tomorrow

And he also gave a bio of my kids, and our political leanings: me pro Bernie, him, Republican but Bernie's not bad.

So, neighborhood organizing and parties? Yeah, that'll happen.

[Teacher Terry]

The house is super cute! So are you planning on living there summers only and then in town for the winter? WE live in 1400 sq ft with 1 car garage and shed. Now I could live in that house alone but with DH he would never downsize enough to fit in something that size.

[catherine]

I will restrain myself from asking too many questions. It’s my nature....you understand. That’s a cute bungalow but you are going to be doing some serious downsizing. I have similar tastes but it would be located in the mountains as a hunting camp.

What kind of taxes go with this.....any shared fees......water source.....sewage facilities....electric or gas heat.....basement.......fireplace?

I know, I promised not to ask.


No problem!

No HOA, nor HOA fees. It's all in a "gentleman's agreement." Taxes: Less than half of what my NJ taxes are... $300/mo. No flood insurance needed. Water source: town. Sewage: Septic. Electric baseboard, but previous owners used the woodburning stove all year. Crawlspace. No fireplace, just the woodturning stove.

[catherine]

The house is super cute! So are you planning on living there summers only and then in town for the winter? WE live in 1400 sq ft with 1 car garage and shed. Now I could live in that house alone but with DH he would never downsize enough to fit in something that size.


I'm REALLY concerned about the clutter factor. It looks so cute in the pictures, but DH is already saying, "We need to bring this; we need to bring that." And I'm saying, "let's just see what we can get by on, and then add as necessary. When I went to Ocean Grove by myself for 6 weeks, I brought one normal wheelie and one plastic box with my office needs. I was fine. Of course, that rental house was completely furnished, but still. I've learned a couple of times in my life that I require very little on a day-to-day basis.

[Teacher Terry]

My office is also our guest bedroom although it is smaller then dH's office. Of course I am neat and he is a slob:~). Can you build a shed for his junk?

[Williamsmith]

I'm REALLY concerned about the clutter factor. It looks so cute in the pictures, but DH is already saying, "We need to bring this; we need to bring that." And I'm saying, "let's just see what we can get by on, and then add as necessary. When I went to Ocean Grove by myself for 6 weeks, I brought one normal wheelie and one plastic box with my office needs. I was fine. Of course, that rental house was completely furnished, but still. I've learned a couple of times in my life that I require very little on a day-to-day basis.

Thank you Catherine. I’m always curious about other adventures. The one I went through was eye opening. I tossed, sold and gave away 2/3 of my stuff and still had a garage full that didn’t fit in my condo. So I rented a storage unit for three months while I tossed, sold and gave away some more. I am much more willing to part with things than DW. But we managed. It is a constant battle not to accumulate too much now.

[mschrisgo2]

The new house is darling! What a find!

From my experience, the more stuff you dispose of, the happier you'll be. And there really is no point in moving things, especially furniture, that you don't have room for. It's much easier to get rid of things in an urban area, than a rural area. My big bug-a-boo was all the boxes of paper stuff...

[saguaro]

What a lovely house! Love the view.

Re: downsizing and clutter, my aunt just seriously downsized from a two bedroom condo to a one bedroom apartment in a retirement community. She had gotten rid of a lot of stuff and even after that she was shocked at how she underestimated how much stuff the new apartment could hold. She hasn't sold her condo yet, so she kept what she couldn't move in the condo and is slowly moving stuff out to Goodwill, etc. from there.