Lost Values? Give It Away.

After 8 years of living in our Tin Can (as we named it years ago), we got our Occupancy Permit finalized last Wednesday!  We’d finished everything but the final inspection on the gutters, and then somehow just let it go.  We’ve resubmitted (and paid – ouch!) a few times, but haven’t followed up with calling in the inspection until now.  At last, it’s done!  We’re moving in!  😉

We had to wrap this up before we could submit our house plans for approval with the County.  Once again, this Spring and Summer we were hard at work getting this project started (and completed), but in the last couple of weeks, realized winter is soon approaching, and our ideas of a 2011 house are seemingly dashed.  In many ways, a lot of peace has washed over us as we realize it’s out of our hands.

For those who were aware of our time sensitive needs to getting this rolling (balloon due), those have all been resolved, and now we’re living “free and easy” with a stable loan.  So house plans are less urgent, or even necessary, really.

During this loan process, our appraisal brought our property value in at 60% lower than it had been just 6 years ago.  We weren’t too surprised.  There aren’t a lot of comp’s around to work with, foreclosed homes are bring the average $-per-home down, and land values have simply changed.

Two “ridgeline” properties (not usable land) within 3 miles of us just came onto the market recently, both at $50-$90k more than our appraisal, which was encouraging to us (or crazy of them).  We joke that our lower appraisal should stave off any temptation to sell.  In reality, there is also some odd comfort in not being ‘worth’ too much.  As I told with Scott, at least no one will knock us off for our riches.  <chuckle>

We are at another point in our life (they come too often) where we have some choices to make, only this time there is no time urgency.  Instead, it’s a time to think about the future, and plan to our best ability.  As always, there are looming questions:

Is it worth going into debt for a “real house” right now, or should we build as we can with cash instead?

That’s a loaded question.  This house is big, roomy and paid-for, but also has too few bedrooms (if we want to expand our family, which we do), lacks insulation, and is made out of paper and keeps me up at night worrying.  It’s not a good long-term investment or place for the kids to come back to.  But then I look around and realize that we have nothing to complain about.  At all.  It’s great living conditions in comparison to the vast majority of the human race, so how can we be so greedy at a time like this to consider “securing” ourselves beyond what we have?!  Especially if it will cost more.  Must we spend what we have?

Note: Two days ago the we were having a family discussion in the van about the challenge of trimming our budget, even tho’ we may think we’re tight already, perhaps sacrificing some things, and then daring to give away the rest.

It costs more to build a house than to buy one on a plot of land, even with contractor prices being so low.  But with interest rates so low right now, a 20 or even 30 year mortgage would cost us less than waiting and paying cash at a higher cost (as prices for interest, product, and service rise – instead of tapping into wholesale prices because of slow growth).

I wish someone would just give us the answers.  And so we wait and listen!

UPDATE: This blog was just about ready to push “Publish” when I was doing finances in the background (making sure everything is in order for me to leave for a week), and noted a discrepancy.  After checking with the online banking system, true as day, our mortgage for this month was the new, $210/month lower payment, much more manageable with Scott’s decreased income while we continue transitioning in the new job — and a month earlier than we expected!  AND NO MORE BALLOON due!  What an awesome, awesome, awesome surprise!