Totally non-biking Q - about the economy!

[Aggie_Ama]

The housing loans thing was a joke. When we applied we were approved for the largest house in our selected neighborhood- $20,000 more than ours. We bought the second smallest. We couldn't figure out why we needed a house 1,000 sq ft bigger than one we already wouldn't completely furnish. Plus we didn't want a mortgage $200 higher a month. Our house is too big at 1,600 square foot for us and two dogs, we don't ever use the guest bedroom. What would be do with with a 2,900 sq ft house with another bedroom and a game room? We are feeling kind of smart as our neighbors complain about not having money to re-do things around their houses they want to do. The houses on either side of us are bigger than ours and higher mortgages.

[TahoeDirtGirl]

I agree with you on the wanting the bigger and better and now...uh oh...how do you pay for it??

I'm now in the market for a house on the east coast (I can't believe I'm saying this!) and I'm watching the prices finally become "realistic" again. I'm sorry, I'm not paying 300K for a 2 bed 1 bath 1000 sq ft house in a suburban town with NO GARAGE? Back in the 90s Calif went through the same thing. The bubble burst. But I think here more than just one bubble burst, the whole interest only loan and just overspending in general.

I talked to an agent and when I say I don't want to pay over X dollars, I mean X dollars. She starts sending me ones that are 50K above. I'm hoping she thinks I can get it for X dollars because I'm not paying X+50!

I have seen some huge houses in Tahoe that are 5,000 sq ft. HUH?! And only two people live there. And only part time. I have no idea what they do with all that room, but you have to clean it and furnish and that's where I say...no thanks!

[tulip]

I'm so glad I bought my little house at the end of July. My mortgage payment is $400 less than my rent was. BUT, I still don't have a kitchen (made the house very reasonable). I have some cash and my parents have some to contribute, but now each of our nest eggs has gone down considerably and I'm having to rethink my kitchen. It's not an optional remodel--there's nothing there except my 25 year old dorm fridge and an old microwave.

I interviewed three contractors--the high end guy was out before he even gave me an estimate. The low guy is a handyman and carpenter, but not a licensed GC, so I'm a little wary of how much work it will take (coordinating plumbers, electricians, etc.). The middle guy is a GC and his estimate was reasonable. I've decided to go with custom cabinets because according to those in the know, they aren't that much more than stock cabinets, which will have to be special ordered anyways. I'm not getting soapstone counters or SubZero appliances--just basic but quality small kitchen.

So now I'm thinking I should go with the handyman guy and just get a cheap-o kitchen in there. Ugh! My parents may not be able to help me much after all. My little nest egg is not enough to do the whole job.

And now I'm worried about my job and work--I'm a consultant who depends on state and federal funding programs for my clients. If the budget gets frozen, those programs might be frozen, too, and then there's no work.

What to do? Sleep on it? Go with the middle guy? Go with the handyman guy? I'm getting tired of microwave mac&cheese.

Thanks for the opportunity to rant a bit.

[Blueberry]

Go with the middle man. At least in NC, the handyman wouldn't legally be able to do the whole job. Can you scale down the middle guy job (i.e. hold off on upper level cabinets)? I'd wait a week (I know, the food sucks and you want to get it done), and see what happens. It's a sucky time to have to make a decision, and I think a little more info will help. Definitely sleep on it. It's the biggest drop in history - not the best time to make a decision. Of course, there's always the possibility it will get worse

CA

[redrhodie]

I'd also go with the middle guy, and I'd really, really research the cabinets. Have you looked at Ikea?

I'd also look at second hand appliance dealers, and on craigslist. Think about the people who are being foreclosed on. They're stripping everything out that they put in the house. That stuff has got to be out there.

Be creative. The library is your friend. I'm convinced you can make a great kitchen without a lot of money, without going el cheapo on the finishes. Look at salvage companies. Look at yard sales. Think outside the (Home Depot) box!

[tulip]

Thanks, y'all. I spoke to my parents and they can still help me out, although not as much as they originally had planned. That's okay. I'm meeting the middle guy on Wednesday with his cabinet guy to see what we can do.

Believe it or not, the super high-priced guy had Ikea cabinets in his estimate. I'm pretty disappointed with Ikea stuff. Cheap construction and thin, thin laminates that don't last. Looks good, but not for long. I recently found a super cool mid-century modern dresser at the local Salvation Army. I painted it and changed the hardware and now I have very cool dresser for not much $ at all!

There's a Sears outlet in my city and they have closeouts and discontinued models, as well as dent-and-scratch. I'll also look at salvage, although I don't want old appliances, although slightly used would be okay. There's a Habitat Shop nearby that I'm going to check out. I think I'll be okay with this.

Thanks again.

[jesvetmed]

No advice here,... just wanted to wish you luck with the project. It can be so challenging to keep projects like this on your budge -- stand your ground! Send pics as it comes along!
Jes