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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If it takes you 10 years to save up $100k, it will take you a lot longer than that to pay off a $100k loan. I would save more aggressively for the renovations ($100k in 5 years seems doable) and try to do the renovations part at a time.[/quote]

I agree.  I wouldn't do any renovations that I couldn't pay for out of pocket.  I sure as hell wouldn't do any renovations that would take me 10+ years to pay for.  Live within your means.  [/quote]

This is ridiculous. Do you believe that everyone must pay cash for their house? Renovations are as much an investment as the original purchase price is.  [/quote]

No, I don't believe that.  The difference is that everyone needs a place to live.  No one *needs* a kitchen bump out.

By your reasoning, you should *always* have a loan against your home.  Finished your mortgage? Take a home equity loan and invest the difference!  Brilliant!

By the time she finishes paying for her renovations (10+ years after they take place), it will be time for new renovations.   [/quote]

No -- by your reasoning, no one would own anything more than a basic shelter, because no one *needs* a $900k house.  And I am not suggesting that one should always borrow against their home for spending money.  However, if someone came on this board and said "I make $130,000 a year.  Can I afford a $100,000 mortgage?" Everyone would say "Of course!"  However, on this thread, everyone seems to get all wrapped up in the fact that they own a $900,000 house free and clear.  Personally, I think it's jealousy talking.Would you say that someone making $130,000 a year shouldn't buy a $100,000 house because they should wait ten years until they've saved the $100,000?If they take out a $100,000 loan, spend it to upgrade the House, they'll have a million dollar house with a $100,000 mortgage, which they can afford (unless there's something about their finances I don't know). Put another way, would you feel differently if they had taken out a small mortgage when they bought the house and saved some of the inheritance for renovations?

Further, if you've tried to sell a house in that price range lately, you'd know that you end up having a give a fairly significant discount when you sell a home that has not been recently renovated.  People who buy million dollar homes generally do NOT want a "fixer upper."   One reason is the hassle of living through the renovations, the other is the difficulty with coming up with the cash in a time when home equity loans are difficult to come by.  The OP is lucky enough to have plenty of equity in their home -- if they are willing to live through a renovation, they will get to enjoy a more pleasant and spacious home, and, if they choose to sell, they'll have improved the marketability and value of their house.  Maybe it's not what you would do, but I get the feeling that you don't live in a $900,000 house with no mortgage. [/quote]

Whatever.  She asked for advice. Most people said that she shouldn't do it.  I don't care what happens.[/quote]

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