Need Advice

**dealmama** · 05-04-2006, 09:25 AM

My husband is being relocated to Charlotte, NC from Cincy, OH. With this deal we try and sell our house within 60 days, they pay for commission, if it doesn't sell, we get appraised value. With this deal we will make anywhere between $25,000 to $40,000. We owe $25,000 on our van,$6,000 on our truck and have student loan debt. My husband wants to use this money to put down on another house, I would rather pay off as much debt as possibe, rent for a year, save and then buy a house... what do you think?

**freedeal** · 05-04-2006, 09:41 AM

I'm with you. It may actually take a year in Charlotte to see where you want to live. See if your DH will take a few minutes to read Dave Ramsey's Total Money Makeover and see if he changes his mind.

**littlemotherhaywood** · 05-04-2006, 09:44 AM

I think it would be great to be able to startover in a new place debt free. My question is how much of a down payment would you be able to save in year while you're renting? I agree that it'll take you a while to determine where you really want to live though. Also, what type of house you'll want and what price range. Being completely debt free can change those factors dramatically. If you keep the debt, you may have to settle for something less than if you got rid of the debt up front. That's a tough decision though.

**midwestgal** · 05-04-2006, 11:04 AM

This may be against the tide, but I would use part of the money to settle debt and part to get a house. You have to live somewhere, and it's always better to be building equity than to be renting. You may find that a house payment is about the same as rent anyway. Also, I believe that home prices will begin to escalate in North Carolina. They are still pretty low, but people are moving there more and more (here in California, we know people moving there for lower cost housing), so that will drive prices up eventually. After you are in a house, work hard at retiring that debt and building up the home equity!

**Lorri** · 05-04-2006, 12:00 PM

I too think I would pay off the debt. Use the money that you were using to make payments to save for another house.

**NoDebtMom** · 05-04-2006, 01:29 PM

I would pay off the debt, rent for a while until you get to know the area and then save up for a house. It would be rather tough to know where in the world you want to live right off the bat in a bigger city like that, get a feel for the area. Will you be there for a long time or is there a chance of relocating soon?

**Telephus44** · 05-04-2006, 07:35 PM

I'd take a look at what housing prices in Charlotte are trending towards. If they're headed down, I'd pay off debt and rent, but if they're trending up then I'd pay off some but use a chunk for buying a house. And I'd worry more about the car loans than the student loans - the rate on the student loans should be low (if you haven't consolidated, check into it so you can lock in the low rate!) and the interest is tax deductible (usually).

**Nada.Leona** · 05-04-2006, 09:00 PM

I'm with everyone else -- pay off the debt. Try to explain to him the benefits of having no debt when you go to look for a house next year instead of just adding more debt. Hopefully he'll see the light.

**canadian gardener** · 05-04-2006, 09:00 PM

I'd be looking at whether you'd be longer than 2 years-- if so then part to debt, and the minimum amount possible to put a downpayment on a house as long as the house won't be in disrepair and need a lot of fixing.

If less than 2 years, or if the area is in a down turn economically, I would rent, and pay off all debt.

The worst is if you can't afford much of a house, you get into a "fixer upper" and have no money to fix, but need to, due to having to sell in a few years, or need to because you must keep it upright structurally.

Some things like leaky roofs, or bad plumbing need immediate attention, and expensive attention.

Renters don't have as much of that type of expense. If the landlord won't fix it, you can move.

**dwallyfam** · 05-04-2006, 09:17 PM

Pay off the debt. Since this is a new city you don't know where you would want to live and may pick the wrong area.

Kellie

**happymommy** · 05-05-2006, 11:36 AM

I agree with you. Good luck.

**frugalnana** · 05-06-2006, 05:14 PM

I would pay off the truck and car. Whatever the payments were on them I would put in the bank like you were still making payments. The student loan should still be low enough that you can still make payments. When I was first married, we rented an apartment and saved for a year. We wanted to check out each area and decide what we liked before buying. That way you can drive through an area at night to see what its like or even in the daytime. You can also see if you can buy a house close to where dh works at, check the schools out etc.

**christina33** · 05-07-2006, 11:31 AM

Pay off the debt first. I live outside of Durham and the housing prices are relatively cheaper than the north. There are lots of choices but you have to get to know the city first and decide where you want to live because the southern cities are larger and more spread out. If you pay the debt off you would have at least a year of debt-free and will increase your credit rating etc. so you can get the house you want in the neighbourhood you want IF you DECIDE to stay in Charlotte. I have a much nicer and cheaper apartment than when I lived up North last year, so you can do pretty well down here.

**Nemeweh** · 05-10-2006, 03:21 PM

Just want to add, If you need any first hand info, or have any questions about Charlotte, feel free to shoot me a PM. Schools, neighborhoods, shopping. No problem! =)