The Friday Gathering – Need some advice edition
My wife and I were having a discussion last night about our house. As many of you know, we’ve been casually looking around for another home. We’re looking to move out in the country in a house with some land. I say we’ve been casually looking, as we can’t really sell our house right now. We have a whole list of things that need to be done before its ready to sell: repainting, repairing some interior molding, new carpet, and some other minor things. The big problem is the major items on the outside.
Our chimney is made of wood and hard board siding. The chimney must have a leak, as over the past year or two it has slowly rotted. It looks fine from a distance, but upon close inspection the trim and siding is rotting away. I am honestly surprised it hasn’t just fallen over yet. We also have quit a bit of trim on the outside that needs replaced and the whole house need fresh paint.
All of this together, I am guessing is going to run about $10,000 – $12,000 give or take. Just getting the wood replaced and the house painted is a good 5-6 thousand.
We are trying to decide how to handle this situation and have basically two options that we are aware of: 1) Save up the money and repair the house, which means we’ll have to stay here for a while or 2) Take out a home equity line and use that money to repair the house and then pay it off once we sell (We have about $50,000 equity in our home).
I really prefer option #1, but we would really like to move before my oldest son starts high school in 2 years. Option 2 scares me to death as it requires taking out a loan. Now arguably, it’s debt, but debt against positive equity on our home. Of course to me, that just sounds like I am possibly trying to rationalize going into debt which makes me nervous.
My wife and I discussed this last night for a while. I told her about the two options and she asked: “What would your readers think and what would you tell them to do?” Great question huh? I replied: “You know, I don’t know what I would tell them to do as real estate isn’t really my strong point. But what I can do is ask them.” So, I’m asking: What would you do in this scenario?
After writing this, I have thought of a possible 3rd option. I am thinking my homeowners insurance might cover the cost of the chimney. Any insurance gurus out there know?
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