Reply to I don’t understand how my neighbors are paying for their renovation

Forum Index » Money and Finances

Reply to "I don’t understand how my neighbors are paying for their renovation"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Yeah, yeah, I should mind my own business – but I still don’t get it.  They are in their mid-30s with three young kids. I obviously don’t know their exact salaries, but based on their jobs, I’d bet one earns about $90,000 and the other about $70,000.

Pre-renovation, the house was probably worth $900,000. And they’re now doing so much work that it’s almost like a new build (adding square footage, completely gutting the inside, adding a deck, etc.).  I don’t see how they’re spending any less than $500,000 on the renovation, and it’s probably more.

I don’t get how a family with three young kids making $160,000 a year can afford this. I guess the answer is family money, but is there really this much of it going around?  This is not even in Bethesda or some place like that.  I should add that it is the childhood home for one of them, so maybe they were gifted it by their parents – but still, are parents giving an extra $500,000+ cash on top of a paid-off $900,000 house (plus rent for a second place while the remodel is happening)??[/quote]

I’m half wondering if you’re neighbors with my brother, but since it’s pretty far from DC, I’m guessing you wouldn’t have made it on DCUM if so! In his case, there’s no real family money but he got the paid off house transferred to him by my parents for free. He has a construction loan to pay for the $500k-ish renovation costs, which I believe require only payments on the interest during construction. Once the house is finished, my incomplete understanding is the construction loan turns into or functions like a mortgage. So, essentially your neighbor would end up with a $500k mortgage, which isn’t crazy for those salaries. (If you’re actually neighbors with my brother, the total family income is a little higher than you think, making the $500k more reasonable). [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics