BRENT in 10-uh-C
Well-known member
I gotta disagree with you on 'Rich' get richer earning interest. Most CDs are paying less than ½ % interest!! That ain't squat. The rich are getting richer off of dividends, -definitely not interest.
garage finances.
- Thread starter rubberrodder
- Start date
I gotta disagree with you on 'Rich' get richer earning interest. Most CDs are paying less than ½ % interest!! That ain't squat. The rich are getting richer off of dividends, -definitely not interest.
ArkTinkerer
Well-known member
- Joined
- Dec 29, 2010
- Messages
- 369
I'll borrow money for a house to live in or a house to rent out and make additional money. Don't borrow for a vehicle, vacation, or luxury item. Don't borrow for gambling even if the sharks call it an "investment".
Will take a zero percent credit card so I can bank the money for later. But you have to put the money into something you KNOW will be able make cash to pay back the CC when the intro rate runs out! Not a lot of sure things out there and frankly, with banks and CDs paying near zero, those options aren't worth the trouble it takes. Had a stock purchase plan at work that makes it worthwhile if the stock price rises high enough to guarantee a return.
Will take a zero percent credit card so I can bank the money for later. But you have to put the money into something you KNOW will be able make cash to pay back the CC when the intro rate runs out! Not a lot of sure things out there and frankly, with banks and CDs paying near zero, those options aren't worth the trouble it takes. Had a stock purchase plan at work that makes it worthwhile if the stock price rises high enough to guarantee a return.
fringeofinsanity
Well-known member
As many have said, everyone's situation is different. Personally, I choose not to borrow for anything. Last year I bought my house and shop with cash, but yes, it took me several years of saving and managing the money to do so.
Whichever way you go, remember, CASH is KING, especially in today's economy. When dealing with contractors or even supplies, ask for the cash price(only after getting your quote). You'd be surprised how much you can save with just a little effort. That may make up for the extra fees in your budget. Good luck
Whichever way you go, remember, CASH is KING, especially in today's economy. When dealing with contractors or even supplies, ask for the cash price(only after getting your quote). You'd be surprised how much you can save with just a little effort. That may make up for the extra fees in your budget. Good luck
KCarGuy
Well-known member
For most People today, Saving is very hard to do.
But, in the long run its the best way for sure.
I had a friend, finance his and lost his job...he could afford the extra cost and lost his home several years ago...it was sad to see happen.
What I did was Trade Up...
I had bought a 1985 Yamaha VMax when they came out...Rode it for several years and paid it off.
Then traded it for a 1960 Corvette "Basket Case"
Worked on that for several Years.
And Restored a 1972 Mustang for a Friend who was a Builder.
All that lead to me selling the Corvette to finance the New Garage and My Builder friend build my Garage...Pad and all, for the cost of only the Material.
When it was alll said and done...My Old 10x25 garage was gone, the New 30x25 garage (with 2nd level Loft space) was built in a new location...and it was all paid for.
Yes, this way took a few years to get there, but, unless you can run a business and make money out of your garage...I wouldnt suggest financing it.
Whatever your decision is...Good Luck.
But, in the long run its the best way for sure.
I had a friend, finance his and lost his job...he could afford the extra cost and lost his home several years ago...it was sad to see happen.
What I did was Trade Up...
I had bought a 1985 Yamaha VMax when they came out...Rode it for several years and paid it off.
Then traded it for a 1960 Corvette "Basket Case"
Worked on that for several Years.
And Restored a 1972 Mustang for a Friend who was a Builder.
All that lead to me selling the Corvette to finance the New Garage and My Builder friend build my Garage...Pad and all, for the cost of only the Material.
When it was alll said and done...My Old 10x25 garage was gone, the New 30x25 garage (with 2nd level Loft space) was built in a new location...and it was all paid for.
Yes, this way took a few years to get there, but, unless you can run a business and make money out of your garage...I wouldnt suggest financing it.
Whatever your decision is...Good Luck.
The people that suggest financing it also have the money to lay out for it. They do better things with that cash to make them money. For the wealthy, financing is a leveraging tool, but you have to have something to leverage with. For the rest of us it's debt. In some cases it's a necessary evil, in some cases not.
Also, look at a mortgage amortization table. Look at how much blood money you would be giving to the bank in interest every month. That could be used for materials, tools or toys.
That said I wouldn't wait 30 years saving $50 a week either. You've got to be serious about saving the cash. When you have enough to get the first stage complete, start the work. Rest will be pay as you go, but work out the budget so you can finish within 2-3 years of starting the project. If you can't, save more and delay until you can finish within a reasonable time frame. It's a commitment once you start though. Treat it like a mortgage. $1k a month for materials or whatever, no matter what. Otherwise it takes a back seat to everything else and never gets done (money pit).
Good luck! It will be worth the sacrifice! This coming from the guy whose garage is attached to his mortgaged house!
There is no right answer. You have to do what's right for you, your family and your finances.
Also, look at a mortgage amortization table. Look at how much blood money you would be giving to the bank in interest every month. That could be used for materials, tools or toys.
That said I wouldn't wait 30 years saving $50 a week either. You've got to be serious about saving the cash. When you have enough to get the first stage complete, start the work. Rest will be pay as you go, but work out the budget so you can finish within 2-3 years of starting the project. If you can't, save more and delay until you can finish within a reasonable time frame. It's a commitment once you start though. Treat it like a mortgage. $1k a month for materials or whatever, no matter what. Otherwise it takes a back seat to everything else and never gets done (money pit).
Good luck! It will be worth the sacrifice! This coming from the guy whose garage is attached to his mortgaged house!
There is no right answer. You have to do what's right for you, your family and your finances.e-tek
Well-known member
Good luck! It will be worth the sacrifice! This coming from the guy whose garage is attached to his mortgaged house!
THIS ^ of course.....but.....
While I don't want to completely derail this thread, that is just not true. Even someone who wins $2 million can't live on the interest today! I've read quite a few books about the rich and it's ALL made with borrowed, then leveraged money. I'm currently reading about Rockefeller and he tapped out so many banks he had to come up with other ways to find $$!
But back to the OP's situation, I stand by using a mortgage broker to find the best deal possible for yourself. So long as you don't over-extend yourself you'll get the money for VERY little and you'll be enjoying your garage now. If you make sure to get an open-ended loan you can pay it down just as you were saving for it. The only difference is you'll be using it now - with someone elses money.
Interest is a real simple way to say that money is working for you, instead of you working to pay someone else back. I don't know any rich people that borrow very much if all. Whether you invest in the market or real estate or a business.
ArkTinkerer
Well-known member
- Joined
- Dec 29, 2010
- Messages
- 369
E-Tek is right about borrowing money to make money. But is this a working garage or a hobby shop? If you have a realistic plan to make more money than it costs to build and a decent payback for your labor and you want to do it, then by all means. If you have a guaranteed income stream from other investments (lucky b*stard!) that will pay for it and all your other needs are met, again, go for it. If you are borrowing money because you think this will be fun but it puts you at risk of losing everything if you lose your job--think real hard and ask yourself is it worth risking your home and all the work and payments you will make if you lose it in 5-10 years.
Quijote
Well-known member
This depends on too many factors. Generally, of course, you don't want to get into debt. And I suspect for most people (who aren't that well off), and most people here (who would use the garage as a man-cave/workshop) that will be the case, but there are other factors to consider:
1) Value: Many would like to think they will never move, but you may have to. If you do, how much will that garage be worth to someone else looking at your property? Debt or no debt, how much can you recover from your expense?
2) Use. Is it purely a structure to be used to store tools or will it be a useful and needed garage? How much is it a "toy" and how much is it an improvement to your lifestyle? (i.e. a place to keep your car clean/warm during a blizzard or prevent valuable stuff form living outside and having better access to them).
3) Finish. Will it look nice and be built in a way that works with the property and adds value, or in an effort to put something useful (to you) will it be something that looks cheap and make the property look worse and be less appealing?
4) Cost. Are you spending "a lot" on it? It could cost $100k and be financed, but if it's going on some $1.5-million suburban home in a upscale location and you already have a note for $800K that you can swing with no problem, what's the big deal? It's all relative.
5) Debt itself. Are you otherwise debt free? (No student loans, no CC debt, no car loans or a dirt-cheap interest rate on the car). Are you sacrificing funding you retirement over it? If you are all set with these, and the loan is at a low interest rate and you can pay it with disposable dollars, it may not be so bad.
1) Value: Many would like to think they will never move, but you may have to. If you do, how much will that garage be worth to someone else looking at your property? Debt or no debt, how much can you recover from your expense?
2) Use. Is it purely a structure to be used to store tools or will it be a useful and needed garage? How much is it a "toy" and how much is it an improvement to your lifestyle? (i.e. a place to keep your car clean/warm during a blizzard or prevent valuable stuff form living outside and having better access to them).
3) Finish. Will it look nice and be built in a way that works with the property and adds value, or in an effort to put something useful (to you) will it be something that looks cheap and make the property look worse and be less appealing?
4) Cost. Are you spending "a lot" on it? It could cost $100k and be financed, but if it's going on some $1.5-million suburban home in a upscale location and you already have a note for $800K that you can swing with no problem, what's the big deal? It's all relative.
5) Debt itself. Are you otherwise debt free? (No student loans, no CC debt, no car loans or a dirt-cheap interest rate on the car). Are you sacrificing funding you retirement over it? If you are all set with these, and the loan is at a low interest rate and you can pay it with disposable dollars, it may not be so bad.
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Totallymetal
Member
Cash is the best answer, but another one to consider is borrowing against your 401K if you have one. Low interest and the interest goes back into your retirement account. Depends on how much you have in it, usually can borrow up to half.
themiller
Well-known member
Save / pay as you go. Driveway/Floor first, then structure.
OP
rubberrodder
Well-known member
Well, looking at the date of the last post, it has been a while since I started this thread, or even looked at it. However some solutions have come my way. A friend had an insurance settlement come through and is interested in purchasing one of my project cars for himself. There's my down payment! The other best news is my Father in law. He is going to loan us the money to do the build at no interest. {other than having a place to do his own oil changes and hang out away from his wife!} He has lent money to other members of the family who have asked for help and never got paid back. My wife and I have never asked for his help but accepted it when he offered. We are also the only ones who have paid him back. I am reasonably sure this is why he offered the help. SOOOO, watch for a build thread coming to a computer near you!
As a closing thought... Having a Family that cares about one another is such a blessing.
} He has lent money to other members of the family who have asked for help and never got paid back. My wife and I have never asked for his help but accepted it when he offered. We are also the only ones who have paid him back. I am reasonably sure this is why he offered the help. SOOOO, watch for a build thread coming to a computer near you! As a closing thought... Having a Family that cares about one another is such a blessing.
Daniel Dudley
Well-known member
- Joined
- Sep 4, 2009
- Messages
- 3,546
And you are making less than one percent on your money in the bank.
OP, just wondering what it would take to stabilize your existing garage. Sometimes you can do a lot for very little outlay.
Also, if you are considering a move, why not consider moving now, and finding the place you want with the garage already built ?
I agree with e-tek as well. Financing isn't necessarily a dirty word, although as we all know it can get you into trouble. I wouldn't go *** over tea kettle into hopeless debt to build a garage, but I would be very old if I saved up to pay cash for giant purchases.
Life is short.
If you can join a credit union, they can be pretty awesome to work with and offer fantastic rates.
Life is short.
If you can join a credit union, they can be pretty awesome to work with and offer fantastic rates.
HoosierMark
Well-known member
Money is only a number on paper until it is used to enhance your life. I did without, saved waited, etc. Life and money are a balancing act. I used all my money for investments in the future. It worked out but it might not have, if I had died early and not gotten to enjoy it. The original question was how to finance a garage not if it was financially wise to do it. The one issue I did not see was borrowing against life insurance. It can be a low cost way to obtain funds. No comment about if it is in a persons best interest to do it, but in my friends divorce it made a big difference in his world.
They get richer by earning dividends not interest...Wait if you must OP...but interest rates, material and labor rates will only go up
chadman
Well-known member
I worked a bunch of overtime and saved up cash to build mine. Also did 90% of the labor either myself or with the help of friends.
thomascreation
Well-known member
As a younger member (28) I appreciate this advice.
NakeDiesel
Well-known member
I went through a long struggle to get my shop built on my farm. I bought the raw land in 2008 with 25% down on the land. I paid on the land for 2 years always paying extra each month. I got remarried and we bought a used 2003 double wide solitaire with 2600 sq ft for 60k. I did owner financing on the house till I could find a rate/place I liked to finance it. I put 10% down on it when I financed it. I basically made the house payments on the house till then. I forked over 3000.00 in cash to put the well on the land, 9+k cash to get electric to my land, 6k+ to get the septic system put in, 10k+ to get my house tore down, moved several miles and put back together. 2k in gravel to get the road into the house. Plus more money in Site work, foundation, etc...
Since then, I've repainted the interior of the house and installed about 80% new flooring in it. I've replaced all major appliances except for the ice box all paying cash. After 5 years of working outside in the weather, I decided it was time to build my shop.
I have 120 acres that I raise cattle on (paid for them with cash as well). I had not been able to build up a cash reserve with all this going on as I tend to take each payday with a supplies list to fill. I do have a 401k but I don't touch it.
My problem resides in that I have 120 acres that I live on, most banks won't finance that large a piece of real estate. I was also crippled because my house was a manufactured home and on a separate note. I ended up with the mobile home after the bank I had my land financed with screwed me over on building a house on the land after months of promises. They had said they could do the note for 4% interest all along up until I submitted the building plans for my house then the rate jumped up to 7.5% because of the number of acres which through the payments out of my budgeted range. I pay 1300.00 a month in child support, so that eats a large portion out of my monthly checks. I'd dealt with the same loan agent when I bought my land and all through this of getting the house built. He knew how many acres I had.
I tried getting a building loan through my credit union to build my shop/refinance the house and land. Got it all approved with them until they realized I had 120 acres. It was right there in the app, but they never looked at that part apparently.
Next I talked to who my wife banked with and they said they wouldn't have any problem doing a loan on that large of land and combining the two notes, etc... Needless to say, after 3 months of screwing around with them, they decided they couldn't do the loan but could do a commercial loan at 10% interest and wanted way too much in liens on stuff I owned free and clear for my liking. I walked from them. We no longer bank with them either.
My last hope was a small bank close to where I live working with the Farm Service Agency to get a guaranteed loan to combine the two notes, and finance the shop, since it was to be used for the farm. After reams and reams of paperwork being submitted, projections calculated, etc... I was able to get the loan done, (only took 6 months). I only borrowed enough to get the dirt work done, pole barn erected, insulation installed, concrete pad poured and the doors installed and pay off the two notes.
Is the building for my pleasure, sure. But I also use it for feed storage, working on my equipment, storing materials, will house a commercial kitchen at some point as well for some of our ideas for products produced here on the farm. I increased my debt by 60k, dropped my interest rate and raised my base payment by 120.00. After 9 months of payments, I have already dropped the payoff time from 20 years at the first of the year when I took the loan, to 17 years now by paying extra on the note. I have done everything else myself within the shop, including building the kitchen area, storage room, bathroom, lining the interior walls with steel, electrical work, etc... and paying cash as I go. This is my retirement that I'm investing in and is part of my farm. My kids all graduate in the next 2 years will eventually leave the nest. This will be our home till someone drags our corpses off of it.
I hated adding to my debt load, but I've watched the prices of building materials and labor far outpace what I will pay in added interest over the last 5 years.
No, I don't just go out and borrow money for things, I don't use Credit Cards, I do have one, but it's for large purchases that I don't want to use my bank card for. I have a couple of vehicle loans, they've been paid off several times since we bought the vehicles, but I can finance them for cheap with the credit union and the rates are significantly cheaper than ag equipment loans at 10 to 12% interest. I only buy used equipment.
Each person knows their pay and their situation and each solution will be different.
Since then, I've repainted the interior of the house and installed about 80% new flooring in it. I've replaced all major appliances except for the ice box all paying cash. After 5 years of working outside in the weather, I decided it was time to build my shop.
I have 120 acres that I raise cattle on (paid for them with cash as well). I had not been able to build up a cash reserve with all this going on as I tend to take each payday with a supplies list to fill. I do have a 401k but I don't touch it.
My problem resides in that I have 120 acres that I live on, most banks won't finance that large a piece of real estate. I was also crippled because my house was a manufactured home and on a separate note. I ended up with the mobile home after the bank I had my land financed with screwed me over on building a house on the land after months of promises. They had said they could do the note for 4% interest all along up until I submitted the building plans for my house then the rate jumped up to 7.5% because of the number of acres which through the payments out of my budgeted range. I pay 1300.00 a month in child support, so that eats a large portion out of my monthly checks. I'd dealt with the same loan agent when I bought my land and all through this of getting the house built. He knew how many acres I had.
I tried getting a building loan through my credit union to build my shop/refinance the house and land. Got it all approved with them until they realized I had 120 acres. It was right there in the app, but they never looked at that part apparently.
Next I talked to who my wife banked with and they said they wouldn't have any problem doing a loan on that large of land and combining the two notes, etc... Needless to say, after 3 months of screwing around with them, they decided they couldn't do the loan but could do a commercial loan at 10% interest and wanted way too much in liens on stuff I owned free and clear for my liking. I walked from them. We no longer bank with them either.
My last hope was a small bank close to where I live working with the Farm Service Agency to get a guaranteed loan to combine the two notes, and finance the shop, since it was to be used for the farm. After reams and reams of paperwork being submitted, projections calculated, etc... I was able to get the loan done, (only took 6 months). I only borrowed enough to get the dirt work done, pole barn erected, insulation installed, concrete pad poured and the doors installed and pay off the two notes.
Is the building for my pleasure, sure. But I also use it for feed storage, working on my equipment, storing materials, will house a commercial kitchen at some point as well for some of our ideas for products produced here on the farm. I increased my debt by 60k, dropped my interest rate and raised my base payment by 120.00. After 9 months of payments, I have already dropped the payoff time from 20 years at the first of the year when I took the loan, to 17 years now by paying extra on the note. I have done everything else myself within the shop, including building the kitchen area, storage room, bathroom, lining the interior walls with steel, electrical work, etc... and paying cash as I go. This is my retirement that I'm investing in and is part of my farm. My kids all graduate in the next 2 years will eventually leave the nest. This will be our home till someone drags our corpses off of it.
I hated adding to my debt load, but I've watched the prices of building materials and labor far outpace what I will pay in added interest over the last 5 years.
No, I don't just go out and borrow money for things, I don't use Credit Cards, I do have one, but it's for large purchases that I don't want to use my bank card for. I have a couple of vehicle loans, they've been paid off several times since we bought the vehicles, but I can finance them for cheap with the credit union and the rates are significantly cheaper than ag equipment loans at 10 to 12% interest. I only buy used equipment.
Each person knows their pay and their situation and each solution will be different.
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Well, looking at the date of the last post, it has been a while since I started this thread, or even looked at it. However some solutions have come my way. A friend had an insurance settlement come through and is interested in purchasing one of my project cars for himself. There's my down payment! The other best news is my Father in law. He is going to loan us the money to do the build at no interest. {other than having a place to do his own oil changes and hang out away from his wife!
As a closing thought... Having a Family that cares about one another is such a blessing.
Sounds like life has been kind to you, congrats.
mobilus
Well-known member
Another option to consider: a used vehicle loan on your paid-off vehicle. I placed a lien on my daily driver and got 120% of its current blue book value at 1.5% interest. If I took the entire three years to pay the 10K note off, interest would be around $300. Having more than half the purchase price in cash made the decision easier, and having my old barn wrecked by high winds a while back made it a necessity. So, if you're a member of a credit union, have a good credit rating and low debt load (house and land only), then it can be wise to go ahead and get it started. Just my opinion, and we all know what opinions are like...
fordsbyjay
Member
I'm surprised at the number of people here that are a) loaded or b) expect to live forever.
The bank has plenty of money with ridiculously low interest rates. You could be dead in 5 years. Why wait your whole life for something you want? Life is short and there's no luggage rack or trailer hitch on a hearse.
With that said, there is a fine line between reckless and prudent when it comes to borrowing money. Only you can decide which path to choose!
I had to laugh when I read these posts because I agree 100% with them and I too wonder how long these savers plan on living. The last garage I built I had a credit line from my bank where I had my mortgage and all my accounts. I used the credit line to build the garage. Once the structure is built it is way easier to refinance your house and pay off the credit line. I sold my house before refinancing but the equity in my house paid that credit line off when I sold the house so I had no extra debt after that. IF you have enough equity in your house get a loan and just build your garage. Live now while you are young because I do not know a single person that is enjoying their "golden" years.
To understand my opinion let me tell you about my life
. After selling that house $25000 of that equity had to go to pay that loan off. For some time I forgot how much fun I had in that garage and could only think of the equity I should have had. Now my next house only had a carport and it was supposed to be a temporary location. Well, 10+ years later I am still in that house with no garage. I had felt so bad before that I didn't want to take a loan to build another garage so for 10 years now I have had nothing. WTF good is that? It ***** **** let me tell you. Now I'm in my mid 40's and I am doing less and less outside because I have very little space to do it. I look at some of my friends and family that live on the edge spending like crazy and living beyond their means and you know what? They are having the time of their lives. Travelling, going to Mexico, camping in their big motorhomes, going boating and snowmobiling. Living life while I sit at home afraid to get a loan. Let me tell you I make a serious chunk of money and I only had a mortgage up till this spring. At 44 there is things I want to have before I'm 65 so I got a loan and bought a Factory Five roadster. I love it, my wife loves it and we drive it more than any of my other cars. So what, I have a mortgage and a $300/month payment on my new hotrod. Whipee doo..
I'm not saying you need a new Denali and a BMW in the driveway and 60" tv's in every room but you can keep your spending in check and have a mortgage as well as a reasonable loan for a garage.
Sorry for the long windage but I hang out with a lot of retired and semi retired people and they have no extra cash to build a garage. Once you retire you are on a fixed income. Live now!!
OP
rubberrodder
Well-known member
NUTTSGT: Yes, life has indeed been kind to me. Even when I get down about stuff, there is always some other poor basterd out there with less than me. I keep reminding myself "There! But for the grace of God go I".
Daniel D.: It would cost more to try and save it than to start from scratch. It was built in the early 20's on timbers just layed on the ground. I don't even know what the dimensions were, dry rot and termites have seen to that. The floor inside was just dirt and there were rabbit hutches inside and what little electrical was old extension cords and electrical tape. As I said before, I plan on emptying it out, knocking it down and having one hellova hotdog and marshmellow roast.
Shadowdog500
Well-known member
The day we bought our house I pointed to where my shop is now and told my wife "some day there will be a shop there". It took 12 years before I was in a position to make it happen, and the attached two car garage was just fine for that time.
When we first bought our house we were in no position to spend big money so I had to wait. 12 years later (2009) I had money in the bank, interest rates were low, and builders rates were low because they were hungry for work so we decided it was time to build.
We got a good price on our Morton building due to the economy. We used our savings and also sold a lot of toys to get extra money, figuring I'd replace them with better toys when we recovered from the financial blow. We also refinanced the house to fund the difference. We only had about 6 years left on the mortgage because we always pay extra every month. The lower interest rates made the payment the same and we only added a couple years to the mortgage. Worked out pretty good and everything will be paid off in a few years.
Biggest thing is that we waited 12 years until we were in a good financial position to make it happen.
its been 4 years but here is a link to my Morton build thread.
http://www.garagejournal.com/forum/showthread.php?t=50523&highlight=morton
Chris
When we first bought our house we were in no position to spend big money so I had to wait. 12 years later (2009) I had money in the bank, interest rates were low, and builders rates were low because they were hungry for work so we decided it was time to build.
We got a good price on our Morton building due to the economy. We used our savings and also sold a lot of toys to get extra money, figuring I'd replace them with better toys when we recovered from the financial blow. We also refinanced the house to fund the difference. We only had about 6 years left on the mortgage because we always pay extra every month. The lower interest rates made the payment the same and we only added a couple years to the mortgage. Worked out pretty good and everything will be paid off in a few years.
Biggest thing is that we waited 12 years until we were in a good financial position to make it happen.
its been 4 years but here is a link to my Morton build thread.
http://www.garagejournal.com/forum/showthread.php?t=50523&highlight=morton
Chris
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madison069
Well-known member
Even though i got the go ahead to get a home equity loan to build my garage I don't feel good about that as we are still paying the house off. We feel like in 6 yrs the house will be paid off. But once I pay the other stuff off my money will start going to the mortgage and that should speed up that process. After everything is paid and the bank account starts to build up, then I'll get serious about building my new garage. But for now I'm just dreaming and planning.
I got the go ahead from the wife.
I got the go ahead from the wife.
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KPSquared
Well-known member
Glad you found a solution OP.
I borrowed a good chunk of my garage on my line of credit. The low interest rates right now made it very possible and it significantly increased the value of my property (I'm doing better than 100% return right now. . . not typical but an acreage without a shop in this area drops the value significantly)
I'm against borrowing for most things, but because this jumped my property value so much, I couldn't say no!
Nice to have a father-in-law with money hey? That's a deal you'd be stupid to say no to.
I borrowed a good chunk of my garage on my line of credit. The low interest rates right now made it very possible and it significantly increased the value of my property (I'm doing better than 100% return right now. . . not typical but an acreage without a shop in this area drops the value significantly)
I'm against borrowing for most things, but because this jumped my property value so much, I couldn't say no!
Nice to have a father-in-law with money hey? That's a deal you'd be stupid to say no to.
OP
rubberrodder
Well-known member
Kevin54
MEMBER EMERITUS
Well, looking at the date of the last post, it has been a while since I started this thread, or even looked at it. However some solutions have come my way. A friend had an insurance settlement come through and is interested in purchasing one of my project cars for himself. There's my down payment! The other best news is my Father in law. He is going to loan us the money to do the build at no interest. {other than having a place to do his own oil changes and hang out away from his wife!
As a closing thought... Having a Family that cares about one another is such a blessing.
Okay...now after all of that, WE NEED PICS!!!!!
I'm going to agree with what E-Tek posted a few months back.....Finance is not a dirty word. When I built my garage, I did it myself. I was divorced, remarried, and basically starting life over. But I borrowed out of my 401K to build it and paid myself back. Most people don't have thousands saved up to shell out and pay cash for a garage which cost anywhere from $15,000 and up to infinity. The only way to do it is to finance it.
But one DOES have to plan. Go for it when interest rates are low. If the common person saved for every single thing to pay cash, most would have not too much. Life's short......do what you can do as long as you can pay for it. If it comes down to payments, then if you can swing it, go for it. Myself, I wouldn't have much if it hadn't been for credit being extended to me. I've paid everything off early, but if I waited, I'd be 80 before I could do anything at all.
jhasafety1
Active member
- Joined
- Jul 29, 2013
- Messages
- 26
Sell blood and plasma. That would be as miserable as saving for 12+ years waiting for a shop. Damned if you do damned if you don't.
bazzateer
Well-known member
I was selling stuff and saving as much as I could but eventually I realised I would only have enough when I was too old to enjoy it. I currently pay £105/month to rent two small lock-up garages 2 miles from home.
I worked out that I could borrow the money over 10 years to get the garage built and it would cost me £135/month, so once the lock-ups were gone it was only going to be £30/month more. Also, in 30 months when I retire I can use a small part of my pension lump sum to pay off what's left of the loan.
Borrowing isn't always a bad thing to do, just ensure you can keep up the payments regardless of what else happens to you and make sure you have a planned exit strategy with regards to paying it off asap.
I worked out that I could borrow the money over 10 years to get the garage built and it would cost me £135/month, so once the lock-ups were gone it was only going to be £30/month more. Also, in 30 months when I retire I can use a small part of my pension lump sum to pay off what's left of the loan.
Borrowing isn't always a bad thing to do, just ensure you can keep up the payments regardless of what else happens to you and make sure you have a planned exit strategy with regards to paying it off asap.
OP
rubberrodder
Well-known member
OKAY FOLKS! You can follow the build progress on another thread I started titled "The Wretched Mess Garage" This should be fun. A VERY special thanks to my Father-in-law for making this possible! Muchas gracias, Abuelo! Yo quero tu!
[spell check does NOT do Spanish et al}
[spell check does NOT do Spanish et al}
The LAST thing in the world I would do would be to give the federal government an interest-free loan. That's just plain crazy
bazzateer
Well-known member
In addition to the above I have just had to get a new fixed motgage rate arranged as my current one is coming to an end. Same lender, same period of time but a better rate which is going to save me £100/month from January so should be 'in profit' sooner than planned!
The LAST thing in the world I would do would be to give the federal government an interest-free loan. That's just plain crazy
It's not crazy if you actually think about what I posted. Some people have trouble saving money, if they have access to it, they spend it. When you have it taken directly out of your paycheck, you can't get at it till you till your get your tax refund.
Some people simply do not have the discipline to save money. Are there better ways to save money, yes quite a few but some individuals, it's a solution to a problem.
Having extra taken out of your check also does something else. It creates a buffer when starting a new job or if your employers screws up your with holdings sometime during the year.
Have the money direct deposited to a savings account for which you have limited access to (e.g., no ATM card, no online transfers, etc.). Have it deposited into an account that belongs to a trusted relative or friend. The bottom line is that you're giving away money (interest) that you could be earning. If you're so bad at saving money that you need to let the government borrow it from you for up to a year, you've probably got more problems that just not knowing how to save ...
Throbbin Rods
Well-known member
I had the 4 foot frost walls poured when the house foundation was poured. Saved up until I could do all of the framing, then had at it. Built the whole thing myself. Once I had it framed I had enough to sheath the entire thing. I finished that and tyveked the structure and put tarpaper on the roof sheathing. Saved some more and shingled it, then a nice bonus from work paid for slab and vinyl siding. Saved up again while I was installing the vinyl and got the overhead door and opener installed. Total elapsed time, 2 years. I went without a lot of like to have items but no got to have items.
I am too old to do this again but there is a certain amount of satisfaction to know I did it all. When I built my first garage I had never even built a bird house. Not that difficult if you follow the rules and use other existing buildings as a template of how to do things like door and window openings correctly.
I am too old to do this again but there is a certain amount of satisfaction to know I did it all. When I built my first garage I had never even built a bird house. Not that difficult if you follow the rules and use other existing buildings as a template of how to do things like door and window openings correctly.