Last year when we sold our home with the intention of building, the idea was to upgrade from our small, rural, starter home into something worthy of a long term investment. A large, suburban home where we could comfortably raise the kids until adulthood, gain equity, and resell with a healthy profit for our retirement. That was our goal.
Now all of the sudden, Hubs has found a trailer in the literal middle of nowhere that he has his heart set on. It is the exact opposite of what we originally set out to do and our realtor has highly advised against it. Not only because buying a trailer is basically like buying a car, it will depreciate over time not accrue value like a brick and mortar, but because the realestate market in the area is AWFUL. Nothing sells there, even the brick and mortar homes. The town has never had a population of more than 900 people in its entire century plus of existence.
There is no potential for a return on this investment. It doesn’t even have any rental potential down the road. It’s a HORRIBLE financial decision, but all Hubs sees is the $70k price tag vs the $150k+ homes we’ve been looking at. It’s true, this trailer is really nice. It’s been completely updated and renovated. I’m not above living there at all. If the kids were grown, and he wanted to buy it? Sure. It’s four walls and a roof. We don’t need an expensive suburban home after the kids move out.
Now? Before the kids have even started their school career, and we’re still working toward retirement? (If such a concept even exists in 20yrs) No. Now is the time to be investing. Spending money, to make money later. Working hard, long hours so we can enjoy our empty nest. I thought Hubs and I were on the same page, but now he doesn’t want to take on the payment of a more expensive home. Even though it’s only a few dollars more per month than the rent we’re paying now. We’re approved for it mortgage wise, we don’t even need a downpayment, but he is refusing to budge claiming that he doesn’t want to waste his time being “house poor”. Making an affordable investment is not being “house poor”. Making a shitty investment to keep up with The Jones’ is being “house poor”. We got approved for $200k+. If I immediately went out and started looking at homes at the top of our credit approval? Yes… that’s “house poor”. Staying with in range of what we already spend now? Normal investment.
I mean, on the one hand I get it. The trailer does have the same square footage as the homes we’re looking at for almost half the up front cost. If it was a short term investment, like our first starter house was? Great. Sure. Let’s go for it. But short term investments are low up front cost with a quick return. This is a low up front cost, but with no return potential, and even the possibility of depreciation!! I’m like HUSBAND WHAT ARE YOU DOING?
The only potential this place really has is the fact that it has two lots. Which means at some point we could technically build a brick and mortar home on the site, but with the real estate market being practically non-existent in the town to begin with that’s too much of a gamble in my eyes. If it didn’t sell we’d be out the cost of the trailer, plus the cost of the new build and stuck living in the boonies forever.
There are some good points too. We would finally be able to live together again. The payments on it would be dirt cheap, freeing up money for Hubs and I to focus on going back to school together instead of one after the other, and hey with two lots we even have room for a Pony! The mother/wife in me wants to go for it for the immediate good of the family. Business sense, money management me is screaming and tearing my hair out.