Financing a detached garage

[plow]

What happens if y'all have an "oops child" or one of you looses your job or some sort of life changing event happens? You are going to be so stretched out that you could loose your hose? I have a buddy just like that. Has some cool **** in his life. But he cant go out to eat lunch with his buddy's unless they buy. Forget a BBQ at his house on the weekend. His vacations are almost non existent. Screw that! I vote you live within your means. Also, Are you sure your parents aren't tired of you suckling on their teet? They might want you to go it on your own.

Not trying to be rude here, Just something to think about.

 

[adamcc91]

Also, Are you sure your parents aren't tired of you suckling on their teet? They might want you to go it on your own.

Not trying to be rude here, Just something to think about.

I'm confused as to what you mean by this. I didn't come back to the business after school to have a free ride. Quite the opposite really, I work my *** off 65 hours a week, otherwise I'd gladly take a second job to help pay down any debt.

I don't take hand outs, and thats why I wont ask my old man for a loan.

I'm not sure where you got the idea that I'm suckling on anyone's teet, but please feel free to explain.


Believe me, I'd love to wait to pay cash for my building, but there is a rule in the subdivision's covenants stating they don't want detached garage. We have talked to several of our neighbors (one of which just build a building) and we haven't heard any negative comments about building behind our house. Once 50% of the lots are sold, the covenants goes into effect, and we absolutely cannot build.

 

[pablo94sc]

Have you considered erecting a carport as a temporary structure? No walls, but the roof, a basic frame, and your slab will be down. After that you could improve the structure as money becomes available.

However, as stated, the future is pretty uncertain and I'm betting on the market/economy taking another nosedive in the next year or two. Nursing is always pretty stable, but outside sales may plummet. You'd be better off doing the bare minimum to get grandfathered in and saving the rest right now for potential rainy days.

 

[yossarian19]

I would be damned hesitant to take on additional debt for the garage. As others have said, you probably ought to figure out how to string the process out as long as you can. Pour slab, put up a wall three months later, etc.
You have to figure that any financing you get for the construction is going to have an interest rate attached.
As soon as you start making payments, that is presumably money that you *aren't* paying student loans with. 45K in principal with up to 10% in interest just on student loans? Effing hell, man, focus on THAT first.
Big picture, slowing down on student loans could cost your family big money by the time it's done. Interest being calculated on remaining principle and all...

 

[JonnyC]

Just curious, where in WI are you located?

I'm a guy that ***** at finances, but I'll try to offer some advice. When I was out of college (2005) I splurged a bit thinking that things were on the up and up and that my career would be taking off. I bought a nice car and spent a good amount of money modifying it, while at the same time making payments on my $22k in student loans.

One thing I realized is that I stretched myself too thin to actually enjoy what I had. I was worrying about blowing my motor which I didn't have the money to rebuild, and I didn't want to pay to have the car shipped somewhere to get a better tune. I just didn't have much fun with the car because the stress and worrying got in the way. I ended up parting out the mods, selling the car, and using the money to pay off the last of my student loans. I was debt free for many years, well, before buying a house (currently my only debt).

With about 320k in debt, I would just slow down on your dreams of a shop right now. You have no clue what the future might bring, and given that the economy is on life support with (unprecedented) cheap money, you'll be thanking yourself in the future if times get tight and you don't have even more debt to pay off. I make about what your wife makes, and I have $135k to pay off on my house. That is the absolute max that I wanted to go, and often times wish I had got a place more in the $100k range (houses are much cheaper up here in GB compared to Madison, where I moved from 2 years ago).

How come you want a shop? Of course every guy does, but I'd be really happy with a 3 car with your first house - plenty of ways to allow you to accomplish what you want to accomplish in a dedicated shop.

 

[Platonic Solid]

There may be more costs than just the shop. If you go through with this, don't overlook the extended driveway you may want to be grandfathered in also (assuming you want real gravel or paved driveway to the shop).

The easiest way to do this would be to make a plan view drawing and get whatever controlling authority to sign off on it.

 

[xyster101]

+1 to added expenses. Your assessment will go up and raise your taxes and possibly home owners insurance. My house assessment went up $35k with my shop. Then there is the added maintence of another building like roof, paint, landscaping.

 

[jonjon1]

WOW, I never seen so many "garage guys" talking someone out of a project, lol...


You know what you can afford, or you should, I would do what you want not what a bunch of mean nothings that don't know you from adam on some forum think. No offense to anyone...