Post # 1
So my fiance and I are in a bit of a delima. We can’t decide what to do or where to live!
My fiance purchased his condo a few years ago when the housing market was in a giant bubble – and paid way more than what his condo is worth now. His condo is a 2 bedroom, 2 bathroom, and a loft. He basically couldn’t sell it or even rent it without taking a giant loss – not to mention it needs some major renovations (kitchen, bathrooms, carpet, paint, etc.)
I purchased a condo (November 2009) and received the $8k homebuyers tax credit. My condo is a 1 bedroom, 1 bathroom, and a small sunroom/den. No renovations are needed. My association is still selling condos which makes it hard for me to sell mine at this time since anyone looking would prefer a new one and they are still selling at the same price if not less now.
My fiance wants me to move in with him – which I am not against and would love to not live in 2 places at once – which is really taking a toll since I basically pack every week and live out of a suitcase and on the weekends he come to my house. But if I sell or rent my place I have to repay $8k! It seems like so much money to repay. My family is against it too, which doesn’t help, since a member of my family is my realtor. Plus we would spend more $ updating his place sooner and would need to take some major time out of wedding planning to go through the entire house and get rid of/make room/etc.
We are getting married in Apil 2012 and were going to take the time between after the honeymoon in late April and November to update his and then sell/rent mine in November so I wouldn’t have to repay the 8k. But in the meantime I am basically paying for a mortgage and utilities and I barely spend time there. I just don’t know what to do. Whether I should push back to stick to our original plan or give in and just repay the 8k and move in with him earlier and do the updates earlier. Any advice would be greatly appreciated – I am at a lost on what to do.
Post # 3
Why do you have to be the one to give up your place? Have him move in with you and rent his place. It’s temporary, and sounds like financially it makes more sense. I mean…you guys can clearly afford both places right now, so it doesn’t seem like money is an urgent problem. i’d rent out his place, wait to make updates, and just live at your place.
Post # 4
(my husband and I have lived in a 1-bedroom for 2 1/2 years, no problem. It really is the most reasonable way to save money, especially in the short term until you can sell your place and move back into his)
Post # 5
@crayfish:The problem being if we rent his we won’t get enough in rent to cover his mortgage and HOA fees. We would still be paying over $1k a month even with a renter!
Post # 6
I would move into your place. That way you are saving some money instead of having to pay all the bills for both places and you don’t have to pay the $8k back.
Post # 7
@Lindsey2005: But you’d be building equity! I still think you’d be better contributing part of that mortgage and selling later once you’ve made upgrades and/or the market has improved more. Plus, you wouldn’t be having to pay back $8K for selling your place.
I agree with crayfish – rent his and live in yours.
Post # 8
I know the $8k is a lot, but – all expensses considered – will you end up spending more if you do move in with him, or if you won’t? will renting out your place come to more or less than $8k? will he share the $8k with you? I think these are all factors to consider.
If it weren’t for the money, would you want to move into his place?
Post # 9
@Lindsey2005: I thought that you could rent your home and not have to pay back the $8K. Is that true? My co-worker’s sister is getting married and moving in with her new hubby, but also got the $8K deal. My co-worker was her “roommate” and will still be living there and paying rent. She is family, so maybe that’s how they were able to keep the $8K… I dunno.
Post # 10
@kperry3: Officially, if the home is no longer your primary residence within 36 months of purchase, you have to repay the First Time Homebuyer’s Credit.
Post # 11
You need to figure out what will cost you both together less money- selling or renting his place or selling yours. Both will cost you for sure, it just depends on how much. Yours will cost $8k plus whatever you will lose on the selling price. His will cost whatever you will lose on his selling price (I’d do it with and without updates) or how much you’d lose monthly on renting his.
And I agree with @ms. murrrr: Would you actually want to move into his place? And would he actually want to move into yours?
Post # 12
My suggestion is to move into the house with the lowest upfront costs. Nevermind that his is bigger because the repairs will offset the price. Make a list of raw figures — what needs to be done and how much needs to be done before you or him can 1) live in the home together 2) be able to sell or rent the other place. Make sure you’re both doing the list because (imo) men, especially need numerical values listed to better analyse the situation.
Regardless of the outcome, I think what’s most important is for you to live together. You will save tons by sharing a home.
Post # 13
If you continue to pay the mortgage on your condo for the next year, how much are you paying? Is it significantly more than 8k? If not, I think your first plan could still be an option. However, if you’re paying so much more, you should just sell or rent the place, pay pack the 8k and take it from there. Is his place in a better location? You mentioned you spend most weeks there so it seems you would both prefer to live where he lives during the work week. However, I would be sure to consider how much his place will cost to update as you mentioned a lot of updates and really, it may be better to sell his condo and cut your losses before investing more $$ into a place that will never resell for what he paid.
Post # 14
Ultimately, you’ll be saving money from what you are spending now by moving in together by getting some sort of rental income (and also probably saving gas costs of driving to and from each other’s places!). Do an estimate of the length of time you think you will spend in whatever condo you both move to and then do a cost comparison of how much money you will spend if either moving into your condo and renting his (even though you will still have to pay over what you get in rental amounts) or moving into his and renting yours.
This is actually an exciting time for you two as well, so don’t lose sight of that. But if you haven’t had the dreaded “money talk” yet, now might be a good time!
Post # 15
Thanks everyone – I crunched some numbers – and financially it’s better if I rent out my place now and move in with him since ultimately we want to live in him place since it’s bigger and we don’t plan on waiting long to start a family.
Post # 16
Not sure if this is doable, but maybe you could find a renter for his place that would be willing to do repairs in lue of rent. You would still have to pay for the place, but then you wouldn’t have to pay for repairs, and then once the market gets better and/or the 3 years for the credit is up, you can sell your place and move into his place and its already been fixed up!
I know its a long shot to find someone who can do that, but my friends did that in a place they are “renting” now, and its working out for them