View in: Desktop
Copyright @2024 TigerDroppings.com. All rights reserved.
- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Posted by
Message
Size of home to build...Keep going back and forth...
Posted by dallaslsufan on 9/18/16 at 4:15 pm119
Here is a scenario I'd like to get the boards opinion on. Small business owner making about $200-$250k per year...Currently living in a house worth about $275k.
$600k in cash in the bank. Maxing the approx $50k a year into 401k. About $200k in retirement...37 years old.
Married with 2 7 year old kids...House paid off and no debt of any kind...House is only 3 bedrooms and 2k sq. ft. Really needing a bigger space and wanting a nice pool for the family. Not a spender or show off by any means...Owns 2 lots outright in 2 different neighborhoods...One neighborhood builds an average of 2700 sq. ft. The other one is over 3k sq. ft.
The question is...How much house would you feel comfortable building price wise? Would you live in the house while you build or sell the house to make sure you have the cash in hand? Would you take a loan or just pay cash?
$600k in cash in the bank. Maxing the approx $50k a year into 401k. About $200k in retirement...37 years old.
Married with 2 7 year old kids...House paid off and no debt of any kind...House is only 3 bedrooms and 2k sq. ft. Really needing a bigger space and wanting a nice pool for the family. Not a spender or show off by any means...Owns 2 lots outright in 2 different neighborhoods...One neighborhood builds an average of 2700 sq. ft. The other one is over 3k sq. ft.
The question is...How much house would you feel comfortable building price wise? Would you live in the house while you build or sell the house to make sure you have the cash in hand? Would you take a loan or just pay cash?
re: Size of home to build...Keep going back and forth...Posted by MadtownTiger on 9/18/16 at 4:33 pm to dallaslsufan
I'm sure others may have more experience dealing with contractors being paid with cash or bank loans.
But with just two kids, I would personally go 2400 with a separated 300 square foot shop/storage building.
So I would go with 2700, 3000 is quite a bit much in my opinion. You won't be able to effectively utilize the entire space I would think. I would sell the opposite lot and use towards new house.
Also I would live in your current establishment based on unforeseen circumstances when building new. You could probably sell off, close to the house being finished when just trim and finishings are being put in.
But with just two kids, I would personally go 2400 with a separated 300 square foot shop/storage building.
So I would go with 2700, 3000 is quite a bit much in my opinion. You won't be able to effectively utilize the entire space I would think. I would sell the opposite lot and use towards new house.
Also I would live in your current establishment based on unforeseen circumstances when building new. You could probably sell off, close to the house being finished when just trim and finishings are being put in.
This post was edited on 9/18 at 4:34 pm
re: Size of home to build...Keep going back and forth...Posted by achenator on 9/18/16 at 4:45 pm to dallaslsufan
Do you have to build? Can you find something existing with a pool that you like? If you are buying a nice home you can get one with a pool the pool is almost free.
You and I are am in similar situations financially, I didn't mind taking a 15 year mortgage and sitting on cash. I sleep well knowing I have almost enough available $ to pay off my mortgage if need be and can weather a lot of financial storms. My mortgage rate is low and I know I could be making a bit more with it by paying the mortgage off but the peace of mind is better to me.
I chose to buy over build because it's all in the finishes and I knew we would go crazy when we got to that point . Our house was a few years (9) when we bought it but it was custom and already had all of the things you forget about when building, landscaping, pool, sprinklers, outdoor storage, etc.
I would feel quite comfortable if I were you putting 25% down with a mortgage payment up to 20% (15 year) of your pay. Gross or take home, whatever makes you most comfortable depending on other expenses, private school, lifestyle creep etc. All of this boils down to how reliable your income stream is as well.
You and I are am in similar situations financially, I didn't mind taking a 15 year mortgage and sitting on cash. I sleep well knowing I have almost enough available $ to pay off my mortgage if need be and can weather a lot of financial storms. My mortgage rate is low and I know I could be making a bit more with it by paying the mortgage off but the peace of mind is better to me.
I chose to buy over build because it's all in the finishes and I knew we would go crazy when we got to that point . Our house was a few years (9) when we bought it but it was custom and already had all of the things you forget about when building, landscaping, pool, sprinklers, outdoor storage, etc.
I would feel quite comfortable if I were you putting 25% down with a mortgage payment up to 20% (15 year) of your pay. Gross or take home, whatever makes you most comfortable depending on other expenses, private school, lifestyle creep etc. All of this boils down to how reliable your income stream is as well.
re: Size of home to build...Keep going back and forth...Posted by Tigeralltheway on 9/18/16 at 8:39 pm to dallaslsufan
Man I feel bad for you!!
re: Size of home to build...Keep going back and forth...Posted by hungryone on 9/18/16 at 8:44 pm to dallaslsufan
Smaller is better....find good plans or an architect who can maximize useful space rather than sprawling sq footage with wasted space. Those 7 year olds will most likely be out of the house before a 15 year mortgage will be paid off.
Depends on how many rooms you want and what kind of space allocation you are going for. If you want a big kitchen and family room with a separate formal dining and living room then you may need more space. If you want the kids to have w play area then you may need more space. If you want walking closets you may need more space. In short, I don't think you have said emoigj about what your requirements are for us to say whether one size house is "better" than the other.
re: Size of home to build...Keep going back and forth...Posted by b-rab2 on 9/18/16 at 9:45 pm to MadtownTiger
2400 is so small for a family
For someone who seems as financially responsible as you sound, I'm surprised you would make a terrible financial decision to want to build a pool. You will lose money right there. If you just have to have a pool, I'd look at buying a house that already has a pool and let the previous owner take the hit on the pool.
re: Size of home to build...Keep going back and forth...Posted by CelticDog on 9/18/16 at 11:04 pm to MadtownTiger
depends on activities.
get them some music training. a music room with sound proofing.
don't worry if one wants to learn violin or drums.
a room with a high ceiling you can play in. they will be there 10 years +
go 3000. you can afford it.
take a look at any in the 3000 neighborhood to get an idea what they are like and be sure to at least match them so you can sell later if you need to or want to move.
pool is such a pain in the arse. join a club.
get them some music training. a music room with sound proofing.
don't worry if one wants to learn violin or drums.
a room with a high ceiling you can play in. they will be there 10 years +
go 3000. you can afford it.
take a look at any in the 3000 neighborhood to get an idea what they are like and be sure to at least match them so you can sell later if you need to or want to move.
pool is such a pain in the arse. join a club.
This post was edited on 9/18 at 11:06 pm
re: Size of home to build...Keep going back and forth...Posted by ItNeverRains on 9/19/16 at 4:23 am to dallaslsufan
Know thy self. Its the most important rule of real estate. What anyone says here is irrelevant since at the end of the day you have to be comfortable with decision.
I have very similar income and family makeup, 2 boys 6 & 3. We've got almost double you in retirement but WAY less cash on hand. As a cash heavy person my opinion is you are too cash heavy.
We built 4800 ft2 here in Franklin and after all said and done almost 900k in (1.2M appraisal ) 850 ft2 game room alone. House is big now but we wanted the space for kids friends to come so we control the environment. We want the "hangout house." Sounds expensive (and is) but we drive Honda's until they die and shop outlets and eat out maybe 1x month. Nice house is our only vice, and everyone gets at least one vice in life.
So know thy self. If you want a bang out over the top house, go for it. Assuming credit is 750+ bank will loan you up to a $1M easily and money is cheaper than cheap. If that type house makes you uncomfortable build something that won't make you uncomfortable. Other people's opinion/perception of your family's home should mean absolutely nothing to you one way or another. Ever.
I have very similar income and family makeup, 2 boys 6 & 3. We've got almost double you in retirement but WAY less cash on hand. As a cash heavy person my opinion is you are too cash heavy.
We built 4800 ft2 here in Franklin and after all said and done almost 900k in (1.2M appraisal ) 850 ft2 game room alone. House is big now but we wanted the space for kids friends to come so we control the environment. We want the "hangout house." Sounds expensive (and is) but we drive Honda's until they die and shop outlets and eat out maybe 1x month. Nice house is our only vice, and everyone gets at least one vice in life.
So know thy self. If you want a bang out over the top house, go for it. Assuming credit is 750+ bank will loan you up to a $1M easily and money is cheaper than cheap. If that type house makes you uncomfortable build something that won't make you uncomfortable. Other people's opinion/perception of your family's home should mean absolutely nothing to you one way or another. Ever.
TD SponsorTD Fan
USA
Member since 2001
USA
Member since 2001
Thank you for supporting our sponsors Posted by Site Sponsor to Everyone
Advertisement
re: Size of home to build...Keep going back and forth...Posted by Bayou Tiger on 9/19/16 at 6:23 am to guttata
quote:
For someone who seems as financially responsible as you sound, I'm surprised you would make a terrible financial decision to want to build a pool. You will lose money right there. If you just have to have a pool, I'd look at buying a house that already has a pool and let the previous owner take the hit on the pool.
On the contrary, I would advise him to consider building a pool. He certainly has the spare cash to do so. His finances and kids suggest it might make sense.
I am pretty finacially sound, and having just built one it is one of the best investments we have made. With the outdoor pool/patio/kitchen setup we have some great family time outside and it has been perfect for entertaining. We are not moving anytime soon and have young kids, so this will maximize our "returns" (cash isn't everything).
Also, pool technology has improved in the last few years, and you will get a better pool from a custom pool designer than a stock pool that some large home builder put in.
re: Size of home to build...Keep going back and forth...Posted by GetCocky11 on 9/19/16 at 8:07 am to dallaslsufan
quote:
House is only 3 bedrooms and 2k sq. ft
That is a nice sized house.
This post was edited on 9/19 at 8:14 am
re: Size of home to build...Keep going back and forth...Posted by KG6 on 9/19/16 at 8:47 am to dallaslsufan
I'm in a 2400 sq ft house now with one kid. Can easily fit a second kid. Would maybe want a 4th spare bedroom instead of the massive office we have. The big difference maker in my opinion is storage space. a 2500 sq ft house with great storage trumps a 3000 sq ft house that just has big rooms. My attic sucks. You climb up and are surrounded by water heart, AC, etc.. If I had the room for some shelving, I wouldn't have to store crap in the garage. Then I'd have more room in general. House would feel even bigger.
Another thing is general build quality. Here in Houston, I find the suburban houses to be built like crap. Yes they have a lot of room, but cheap flooring, terrible molding jobs, cheap cabinets, etc. I'd much rather be in a 2500 sq ft house with top of the line interior than spending money for random master bedroom space. At 2400 sq ft, I can literally fit 3 king size beds in my bedroom and still have walking space. It's useless.
As far as amount to spend, I'd certainly feel okay spending 600k on a house if I had 600k in the bank to back the loan I took out (Even if I made half what you do). But, I feel like if you have 600k in the bank, you have some room to grow your retirement portfolio as well. But as with anything, no one knows the circumstances it took to get you to your point, so I really have no room to speak to that. You may be maxing out all of your options. I'm certainly no expert.
Another thing is general build quality. Here in Houston, I find the suburban houses to be built like crap. Yes they have a lot of room, but cheap flooring, terrible molding jobs, cheap cabinets, etc. I'd much rather be in a 2500 sq ft house with top of the line interior than spending money for random master bedroom space. At 2400 sq ft, I can literally fit 3 king size beds in my bedroom and still have walking space. It's useless.
As far as amount to spend, I'd certainly feel okay spending 600k on a house if I had 600k in the bank to back the loan I took out (Even if I made half what you do). But, I feel like if you have 600k in the bank, you have some room to grow your retirement portfolio as well. But as with anything, no one knows the circumstances it took to get you to your point, so I really have no room to speak to that. You may be maxing out all of your options. I'm certainly no expert.
re: Size of home to build...Keep going back and forth...Posted by StringedInstruments on 9/19/16 at 9:03 am to dallaslsufan
No advice for you but a question -
What kind of business do you own? That's a lot of cash for 37 years old.
What kind of business do you own? That's a lot of cash for 37 years old.
re: Size of home to build...Keep going back and forth...Posted by Y.A. Tittle on 9/19/16 at 9:15 am to b-rab2
quote:
2400 is so small for a family
Good lord
re: Size of home to build...Keep going back and forth...Posted by GetCocky11 on 9/19/16 at 9:24 am to Y.A. Tittle
This would be a fun OT thread, lol.
re: Size of home to build...Keep going back and forth...Posted by Athanatos on 9/19/16 at 9:59 am to dallaslsufan
I grew up in a 5,000 sq ft house with a pool, and it felt about the right size for the family's needs. Let your own situation be your guide.
re: Size of home to build...Keep going back and forth...Posted by dallaslsufan on 9/19/16 at 10:01 am to Y.A. Tittle
Sorry...Here is a little more info...The reason we are considering building is we want to have a house that is going to be the hang out house. I know a pool isn't the best investment, but it is one of the reasons we want to build a house. Get exactly what we want to make it place everyone will want to be at as opposed to our kiddos want to go elsewhere to hang out.
It is going to be very expensive and I am not a spender at all so I am really having to come to grips with this decision. It is stressing me out spending this kind of money, but I think it will be very beneficial in the long run.
This is in Lafayette...It is staying in the back of my head that pricing on this size/price of a home should start dropping. We have seen it a little...I keep wondering if I should just wait and we will see a big drop in housing...Maybe we could pick something up that is similar to what we want to build for a steal. I am not looking at this from a investment standpoint. We are going to be in this house for at least 10-15 years. So resell is not a worry...
I know we are cash heavy, but I have a VERY conservative mind set. I was hit hard during the financial downfall. My dad always said borrow money when it is cheap and invest instead. Well, I don't believe in that anymore. I'll take by guaranteed 3-4% and pay off the house and not have to deal with the bank or worry about return on my investment in the stop market. I know that doesn't sound financially savvy, but it is where I am at comfort wise and it has served me well to this point.
To answer your question about the type of business...I have a service business that I co-own with 2 other family members...It is construction based.
It is going to be very expensive and I am not a spender at all so I am really having to come to grips with this decision. It is stressing me out spending this kind of money, but I think it will be very beneficial in the long run.
This is in Lafayette...It is staying in the back of my head that pricing on this size/price of a home should start dropping. We have seen it a little...I keep wondering if I should just wait and we will see a big drop in housing...Maybe we could pick something up that is similar to what we want to build for a steal. I am not looking at this from a investment standpoint. We are going to be in this house for at least 10-15 years. So resell is not a worry...
I know we are cash heavy, but I have a VERY conservative mind set. I was hit hard during the financial downfall. My dad always said borrow money when it is cheap and invest instead. Well, I don't believe in that anymore. I'll take by guaranteed 3-4% and pay off the house and not have to deal with the bank or worry about return on my investment in the stop market. I know that doesn't sound financially savvy, but it is where I am at comfort wise and it has served me well to this point.
To answer your question about the type of business...I have a service business that I co-own with 2 other family members...It is construction based.
This post was edited on 9/19 at 10:03 am
re: Size of home to build...Keep going back and forth...Posted by hungryone on 9/19/16 at 11:15 am to dallaslsufan
quote:
This is in Lafayette...
I'd be waiting 6-8 months and looking at sales in Lafayette. Bet you'll find some bargains.
re: Size of home to build...Keep going back and forth...Posted by notsince98 on 9/19/16 at 12:38 pm to dallaslsufan
1) I have 2400 right now with 3 kids. Plenty of room. Will finish out the basement to be a rec room/man cave and have 3200 sq feet then. I don't see how i'd ever need more.
2) When I built I stayed in my previous house and sold it after I moved in to the new house. We paid cash for the up front building costs and then threw all of the money from the previous house into the new mortgage. Why move twice? Plus, living in a staged house blows donkey balls.
Have plenty of cash on hand when you start building as the change orders will add up and you will have many. The basic builder finishing is crap. I'd highly recommend upgrading insulation as this is the only time you can do it easily.
2) When I built I stayed in my previous house and sold it after I moved in to the new house. We paid cash for the up front building costs and then threw all of the money from the previous house into the new mortgage. Why move twice? Plus, living in a staged house blows donkey balls.
Have plenty of cash on hand when you start building as the change orders will add up and you will have many. The basic builder finishing is crap. I'd highly recommend upgrading insulation as this is the only time you can do it easily.
Back to top
Follow TigerDroppings for LSU Football News