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Topic Title: WAIT to buy a house after BS3--WHY?
Topic Summary: Gather 'round, and listen up--
Created On: 02/09/2012 11:33 AM
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 02/09/2012 11:33 AM
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MyTMMO User
Family Tree Changer

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Joined: 09/07/2006


If you do buy a home out of order, and are determined to get back to the TMMO principles--this is what life looks like:

NO new flooring for X years--living with sub-flooring after tearing out 70s shag carpeting

NO new decor items--thus killing your inner Martha Stewart--and getting by with some very inexpensive rummage sale treasures bought with blow money

NO new furniture--again, 2nd hand make-do finds aka "eclectic"

NO dishwasher bought/installed--that dream has gone POOF

NO window installation for better light in kitchen for another year minimum--that dream has gone POOF for another year and has killed the dishwasher dream permanently. Window vs dishwasher and window won out.

Readjust debt repayment timeline because you NEED to have home repair/maintenance fund established.

Readjust debt repayment timeline AGAIN because you NEED to save $8500 for a roof replacement.

Readjust debt repayment timeline AGAIN because you NEED to fix the water heater.

Readjust debt repayment timeline AGAIN because you NEED to rebuild the home maintenance/repair fund.

Readjust debt repayment timeline AGAIN and AGAIN because...

Don't buy a house until you are done with BS2 and BS3.


In 2009, we did. And it was a mistake. One we admit and have adjusted our lifestyle accordingly so we can hopefully "catch up" and get BS2 DONE and onto BS3.

What does "adjusted lifestyle accordingly" look like?

NO new clothing PERIOD--time to make do, mend, refurbish, glue, staple...

NO extra spending on anything outside of the 4 walls and debt payments.

NO status quo with blow money---that has been reduced significantly.

We've done it before, we can do it again.

BS7 member Kmunsch VERY wisely will say:

Nobody is doing as good as they think until BS3 is COMPLETE.


Truer words never spoken.

Dh/I have been at this TMMO a long time. And, the reality is, for every decision one makes that prolongs the conclusion of BS3, it is a decision to fail. Failure is THAT close--illustrated below.




Edited: 01/22/2014 at 01:27 PM by Moderator
 02/09/2012 11:46 AM
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MyTMMO User
I stole Dave's boat

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Run, Gilda! Run!!

Excellent job putting necessities in order, Rolo. You are an inspiration to me!!
 02/09/2012 12:00 PM
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MyTMMO User
More Than Enough

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Home ownership does cost a lot above and beyond the principle, interest, taxes and insurance payment, doesn't it!
 02/09/2012 12:11 PM
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MyTMMO User
Why call it The Dave Ramsey Show when I’m around?

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I agree that is why it is very important to have a FFEF before you buy a house. Me personally I'm not going to bother with buying a house too much of a hassle.

Great post Rolo
 02/09/2012 12:14 PM
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MyTMMO User
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"The Money Pit" aka home ownership.
 02/09/2012 12:20 PM
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More Than Enough

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If you look closely, you can see the cheetah's claws ready to sink in the flesh of the gazelle.
 02/09/2012 12:22 PM
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MyTMMO User
TMMO Guru

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This is a very timely post. DH and I go through our ebbs and flows of homeownership "WANTS"!! It's sometimes so hard to argue against the 3.14% interests, but........ It is more than just the house payment and taxes!!

Thanks for the reality check!!
 02/09/2012 12:30 PM
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MyTMMO User
Drank Kool-Aid

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CHEETAH!!!!!!

A good a timely reminder why we shouldn't get a new range because the current one still mostly works. Sigh.
 02/09/2012 12:33 PM
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MyTMMO User
I stole Dave's boat

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Rolo - I honestly should post pictures of our ripped up floors and the horrible, horrible carpet that still needs to be ripped up in our house - I was ROTFLOL!

It was like you were here just walking around taking notes. dishwasher? broken oven? broken pool? we renamed it the cement pond.

I've got take pictures and link - it really drives home the point of an awesome post you wrote!!

Best thread of the day!

I think people get the idea that Dave's a killjoy - nothing could be further from the truth!!
 02/09/2012 12:42 PM
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@gmcavana
Seriously. This house is the "bubble burster" aka killing the dream, one expense at a time! LOL Thank GOD, it has been NOTHING major that we couldn't save for (roof@$8500 ) but that put us behind by 12 months due to other "life happens" stuff. You know you are really changing, at the core of yourself, when you think: that brown/rust shag upstairs isn't THAT bad, maybe we could use a lot of cream/off white to offset the impact. Or: the mint green siding isn't THAT dated, maybe if we paint the shutters white it will "update" the look. Oy.

@johnstonteam



If you look closely, you can see the cheetah's claws ready to sink in the flesh of the gazelle.


Yes...THAT is why we only look behind us with our progressive lenses OFF, at night, with NO light on! We KNOW the boogey man is RIGHT THERE but if we don't see it...maybe we will escape, intact!

Edited: 02/09/2012 at 12:43 PM by MyTMMO User
 02/09/2012 12:43 PM
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MyTMMO User
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I think people get the idea that Dave's a killjoy - nothing could be further from the truth!!


I think of DR's quote, "no discipline seems pleasant at the time...." I "WANT" doesn't make it wise or right!!

I agree, best post of the day!!
 02/09/2012 12:53 PM
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I am Dave

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Rolo - thanks this was a GREAT summary
 02/09/2012 12:53 PM
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I stole Dave's boat

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rolo - I forgot to mention that we had to do a refi and cashout to replace our roof and repair some exterior siding that had rotted out. thankfully each refi was for a shorter and shorter term but now we're so house poor we can't do BS4. It's all messed up!!

And the seals on all our windows are broken. Do you know how freaking much it is going to cost to replace every window in a 3,000 sf house?

If you buy a house of order, your dream will start becoming a nightmare in about 10 years if not sooner. We aren't in a spec house either. This is a quality custom home (older though) built with 2x6 construction and some nice high end features. It makes it even worse because the neighbors would never put up with us letting things go.
 02/09/2012 01:16 PM
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Why call it The Dave Ramsey Show when I’m around?

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Rolo, I remember the excitement that everyone had for me when I purchased my first home. A new roof and two decks later (all within six months) I was convinced they were excited for me because misery loves company.

I love home ownership but it is impossible for someone who doesn't own to see what a total drain it can be on your finances and time. Before I purchased I had money and my weekends free. After purchase I was sinking all extra money in the house and spending my weekends working on the place.
 02/09/2012 01:37 PM
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"The Money Pit" aka home ownership.


I bought our current house in 2005. We plan on having it paid off before 2020 leaving us only insurance and taxes after that, which will cost us approximately $250-$300 per month. After it's paid off, we'll be saving the $900 that would still be going towards rent had we not opted buy. Sure, we'll still have to maintain it after it's paid off, but it's better than paying rent to a landlord for the rest of our lives, IMO. DW and I will come out ahead financially over the long term by having a paid for house that needs maintenence every now and then vs paying rent for the rest of our lives. After the mortgage is paid in full, we'll be saving close to 12K per year that otherwise would be going towards rent. We'll be in our early 40's with a paid off house. Say we both live until we're 75 years old. We'll be saving roughly $420K in our paid off home that requires maintenence every now and again. If you crunch the numbers, a paid off mortgage beats paying rent every time, by far.
 02/09/2012 01:57 PM
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Sold the kids

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Rolo - thanks for sharing and being honest about your experiences because the "should be buy a home out of order" posts seem to be a regular occurrence and its great to see the details and reality of the situation when done out of order. Nothing can wreck a sizable snowball sooner than unplanned home expenses. We owned a home prior to finding DR and I remember a number of times a "House Murphy" would show up and wipe out a nice sized snowball we were about to throw at BS2. It really can take the wind out of your sails
 02/09/2012 01:58 PM
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Watkins - I don't think Rolo was saying "Never buy a house"... She's saying do it in the right order.

Looks like you're through BS2 and have at least 3 months expenses in the bank, so you're probably doing ok. I bought in 2005 also, about 5 years before finding Dave. If I knew Dave then, I would have waited, but eventually I would still have purchased a home.

Rolo would never argue owning a house or not... That is a personal choice
 02/09/2012 02:01 PM
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What a great post! And all the replies are so helpful, too. Thanks so much for sharing.

Mara
 02/09/2012 02:09 PM
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MyTMMO User
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This post should be stickied for all those who stamp their foot and say but my situation is different!
 02/09/2012 02:23 PM
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Good points. We've been pretty lucky with our house and "only" had one major repair - just a $4k furnace replacement when the old one died on the coldest week of the year. It was painful enough with an FFEF, it would have been a disaster without it.

Besides that we've still had a couple of minor repairs (water heater on the fritz was fixed for just $200, gas fireplace for about the same -- small, but painful in BS2.) Actually, there was also an emergency $200 purchase of a bed frame the day we moved in, when we discovered that our queen box spring couldn't make it up the stairs and we needed a wooden box (which could be disassembled) instead.

We've also spent several thousand (at least) on furniture and art and odds and ends to make the place comfortable over the 3 years we've been there, and the place would seem a lot less nice if we'd had to delay or decline those purchases. Heck, we're *still* waiting for the right time to replace some of the carpet with wood floors instead. There have been enough other priorities that even in BS6 we haven't found the money to do it.
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