Hello PF. My wife and I have lived in our home for almost 2 years now. This house was never intended to be our permanent home. Ideally, we only want to be in this house for another 5 years, maximum. Unfortunately, to get a good price when selling it, and also to make it a nicer home for us, it needs quite a few repairs. List of home repairs in order of importance before we sell are:
- Replace all windows. Many are cracked and they are original to the house which was built in 1953.
- Remodel bathroom. It is very outdated and there is some minor water damage.
- Refinish hardwood floors. They are pretty worn and scuffed up.
- Replace/repair walls and ceilings going to basement. Previous owner destroyed walls by gluing posters to them.
- Replace basement walls. Same reason as #4.
- Replace basement flooring
- Replace kitchen appliances. All still technically work, but they also all have their issues, Dishwasher, Stove, and Refrigerator.
My question is the best way for us to pay for these repairs. Obviously we will not be doing them all at once, but they should be done before we move. Is the best option a home equity load or HELOC, or should we just spend some time saving and pay cash?
Here are our current fiances.
Combined we take home ~$5200 after taxes per month. After bills and some recreation, we can probably realistically save $600-$700 per month for repairs if we stop putting into our emergency fund.
EF: ~$12,000
New Car fund: $3500 + $500 per month. Hoping to buy 2-3 year old car in about a year.
So PF, should I keep building my EF and get a Home equity loan or HELOC, or would it be better to leave EF where it is at for now and switch over to saving for repairs and pay cash for repairs?
Submitted May 18, 2016 at 09:00PM by McJaegerbombs http://ift.tt/1TjXIVu personalfinance
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