Recent, Upcoming Financial Changes = Wrench in Plans to Buy an RV
Bobbi said
09:51 AM Sep 4, 2013
I apologize if this gets long, but it's sort of complex. We have been planning on buying an RV for a while now. We were supposed to do it next spring, but we've got some wrenches thrown into the fan, and I'm just looking for objective opinions on how you would proceed if you were in this situation. We are an average middle-class family with a gross income of $47,000 a year. We earn every penny, scrimp, save and sacrifice to make big purchases, like an RV, happen. Anyhow, here goes....
Nearly three years ago, I devised a plan to get out of this county (the school board has been making bad financial decisions in a downed local economy), and get out of debt. The plan would unfold over the course of three years starting the year we purchased the RV, which was supposed to be next spring. We would pay off the RV in three years, sell our current home, and buy a piece of land with the profits from the home sale. At that point, we would stay in the RV temporarily while we built a house. We would use cash and build as we could to avoid debt. Without any other debt (hopefully - my car may not make it that long) at that time, it would not take long to build a home.
Our school district has upped our taxes again. They were just increased last year and a couple years before that. They recently built an almost brand new school and purchased an adjacent small piece of land for a million dollars - land that is not zoned to build on and is currently partly a swamp. Our community has been in an uproar. Anyhow, our mortgage includes our taxes, so our mortgage payment has jumped from $680 per month to $740 per month. Two years ago the mortgage was $620.
It seems like leaving this county is just becoming more urgent. Our school district appears to be oblivious to the load they are placing on our backs, and they have future plans to spend even more money. It's absolutely ridiculous. The area's largest employer permanently laid off about 40% of it's workers almost two years ago, and many places have closed down with no future replacement jobs in sight. In the next county over, the school board makes no decisions without asking residents for an overwhelming approval. That is SO not happening in our county...they just seem to do what they want.
Fortunately (sort of) for us, I work as an independent contractor doing Internet consulting from home and my fiance is a truck driver, so neither of us are dependent upon this local economy. But neither of us have access to employer sponsored healthcare, which brings me to the second wrench in our plan. With the upcoming healthcare changes, we are facing more financial burden. The estimate for the health insurance under Obama's plan will cost us over $8,000 per year. Obviously, this will be a much more significant burden than the increase in the mortgage/taxes, but more burden nonetheless.
So we really don't know how to proceed at this point. The good news is that our state is trying to get out of the required health insurance, and also is looking at doing away with school taxes and implementing a higher sales tax so as to ensure that taxation is distributed and paid more evenly and universally. But will these two things happen? That's the question. And we don't know how long it will be before we know whether or not - or if - these changes will happen.
So, what would you do if you were in our shoes? Would you follow the original plan and just have faith that things will work out in your favor? Or would you do away with the idea of getting an RV and focus on selling the house? Or something else?
-- Edited by Bobbi on Wednesday 4th of September 2013 09:52:47 AM
cherylbrv said
05:13 PM Sep 4, 2013
I'm so sorry to hear about your woes. You wouldn't happen to be in Central NJ, are you? We've had the same problem with our taxes constantly on the rise -- our mortgage is $950; taxes are $1600 per month! We've been planning to buy an RV since 2010. If you read my blog, you will see that we've had nothing but setbacks. Every year, we say that the house will be on the market "next spring". Been 3 years now, and still only about half way to being there. Our plans are to full time in the RV, but we can't buy it until we sell the house.
Since you phrased your question with "what would you do" I'm sure you'll get lots of diverse responses, as we all come from different circumstances and experiences. What would I personally do? My current plan is to sell the house (I need to make a lot of cosmetic repairs to get it market ready; selling it "as is" will not yield the money I need). Although I've been researching everything to death over the past 3 years, I know I will not be ready to run out and buy my new home on wheels the day after closing, so I would plan to find a small, cheap apartment with a short term lease, which will buy me some time to fine tune my plan of action and get my finances in order.
Personally, I think the most logical course of action for you would be to sell the house as quickly as possible so you can at least save on the high taxes and consider moving into a short term apartment in another county. It buys you some time to figure out what to do, while putting a few more $$$ in your own pocket.
I wish you all the best. Most importantly, try to have faith that things will work out somehow.
SnowGypsy said
05:17 PM Sep 4, 2013
We have been moving around for awhile and have always planned to full-time RV and in KS, we feel your pain in taxes and KS is trying to opt out of Obamacare. We are lucky to both be military veterans so we don't have to worry about that issue, yet. We just relocated to a county that should have been better but it isn't because things have changed here, behind the scenes. So, when making the choice to move to another county or even a different state, always remember that leadership changes, population can change with a shift in employment and back to square one. There is a lot of corruption in local government and favors cost money and money passes from hand to hand.
I'm somewhat confused as to the purpose of the RV. Is it just for use while you are building the house or is it something you are going to be using for recreation after the house is completed? Also, have you checked for zoning laws that might prevent you from putting an RV on land? In AZ, a county we were in had a limit to how long you could have an RV in place out in the county before a house had to be built. Another concern would be weather either very hot summers or cold winters can be rough in sitting in one place depending on your RV and how well you have prepared to the best of your ability.
Before I bought land somewhere, I would pick over the county and find out what plans they have for the future. Is the jail overcrowded? What are the conditions of roads and bridges? I would get a copy of their budget and maybe compare it to the one for your current county. And, the schools? I look what is happening there as far as student count and if they may decide they need more room. All of these expenses come in like a whirlwind.
Can't say what I would do in your position since every time we moved, if it was better, it changed or wasn't really better but they were keeping that fact a secret. This kept the dream of fulltiming alive, being able to be fed up and drive away!
Bobbi said
06:17 PM Sep 4, 2013
Thank you both for taking the time to read my lengthy post, and reply. :>)
It's good not know that we aren't the only ones who are facing wrenches in our fan, but I wouldn't wish these situations, yours or mine, on anyone. I am sorry to hear of your plights also. *Sigh*
Cheryl - I am going to read your blog.
We are in PA. OMG...your taxes are AWFUL! No wonder you don't have extra cash! Are you right in the city? We are in a rural area.
Our house is in need of a basement repair and some minor cosmetic stuff, so I know where you are coming from there...it's going to take some money to get the basement fixed. I was planning on taking out a small loan right before selling the house to fix the basement, then pay it right back out of the proceeds. As it is, we wouldn't get full selling price out of it either, just as in your case. We've got lots in common! I feel bad for you that you keep experiencing setbacks, but I understand that aspect as well. The day I realized our then current truck wasn't strong enough to pull what we were looking at, my heart broke. Having to buy a different truck was a setback for us, then we had to put over $4,000 in the engine to make it bulletproof. I wanted to scream.
Because of the bad local economy and lack of jobs, this is a bad time to sell a house. Our neighbors have been trying to sell for a few years with no luck. We were hoping things would be improved in three or so years. So, I don't know if selling the house right now is best, though it is tempting to think about.
SnowGypsy - The RV will be used for camping before and after, and a temporary living quarters when needed. At some point in the future, we would like to get out and go traveling with it also.
Good point on the laws/condition of the prospective new county.
You are right...things are hidden from the people. Our community is a microcosm of the macrocosm. And we are certain that our school board is getting/doing favors. A million dollars for an empty acre of land around here is so outlandish that I feel like we are in the twilight zone. Now they want to put a fancy new sign in front of the school that costs $92,000. Beam us up, Scotty!
kb0zke said
10:19 PM Sep 7, 2013
From what you say about the school situation, I doubt that things will get any better as long as you have that school board. I'd suggest that you make selling your house your first priority. Get your real estate agent to tell you what needs to be done, do it, and price it as low as you can. Then move out of that county. If you rent in that county you will just have increasing rent payments as the taxes continue to rise. Once you are out of there you can regroup and make your plans.
Another possibility IF you have the money would be to buy a used 5'er and park it in the neighboring county at a private campground that permits long-term use instead of renting an apartment. The advantage of that is that you may save a bit of money and you won't have to move twice. You can also have a bit of time to look for the 5'er while your are waiting for your house to sell. Remember that you don't necessarily need to own the truck to tow it, since it is going to be parked for some time. If you buy it locally you can probably have it delivered to where you want it by the seller as part of the deal.
I apologize if this gets long, but it's sort of complex. We have been planning on buying an RV for a while now. We were supposed to do it next spring, but we've got some wrenches thrown into the fan, and I'm just looking for objective opinions on how you would proceed if you were in this situation. We are an average middle-class family with a gross income of $47,000 a year. We earn every penny, scrimp, save and sacrifice to make big purchases, like an RV, happen. Anyhow, here goes....
Nearly three years ago, I devised a plan to get out of this county (the school board has been making bad financial decisions in a downed local economy), and get out of debt. The plan would unfold over the course of three years starting the year we purchased the RV, which was supposed to be next spring. We would pay off the RV in three years, sell our current home, and buy a piece of land with the profits from the home sale. At that point, we would stay in the RV temporarily while we built a house. We would use cash and build as we could to avoid debt. Without any other debt (hopefully - my car may not make it that long) at that time, it would not take long to build a home.
Our school district has upped our taxes again. They were just increased last year and a couple years before that. They recently built an almost brand new school and purchased an adjacent small piece of land for a million dollars - land that is not zoned to build on and is currently partly a swamp. Our community has been in an uproar. Anyhow, our mortgage includes our taxes, so our mortgage payment has jumped from $680 per month to $740 per month. Two years ago the mortgage was $620.
It seems like leaving this county is just becoming more urgent. Our school district appears to be oblivious to the load they are placing on our backs, and they have future plans to spend even more money. It's absolutely ridiculous. The area's largest employer permanently laid off about 40% of it's workers almost two years ago, and many places have closed down with no future replacement jobs in sight. In the next county over, the school board makes no decisions without asking residents for an overwhelming approval. That is SO not happening in our county...they just seem to do what they want.
Fortunately (sort of) for us, I work as an independent contractor doing Internet consulting from home and my fiance is a truck driver, so neither of us are dependent upon this local economy. But neither of us have access to employer sponsored healthcare, which brings me to the second wrench in our plan. With the upcoming healthcare changes, we are facing more financial burden. The estimate for the health insurance under Obama's plan will cost us over $8,000 per year. Obviously, this will be a much more significant burden than the increase in the mortgage/taxes, but more burden nonetheless.
So we really don't know how to proceed at this point. The good news is that our state is trying to get out of the required health insurance, and also is looking at doing away with school taxes and implementing a higher sales tax so as to ensure that taxation is distributed and paid more evenly and universally. But will these two things happen? That's the question. And we don't know how long it will be before we know whether or not - or if - these changes will happen.
So, what would you do if you were in our shoes? Would you follow the original plan and just have faith that things will work out in your favor? Or would you do away with the idea of getting an RV and focus on selling the house? Or something else?
-- Edited by Bobbi on Wednesday 4th of September 2013 09:52:47 AM
I'm so sorry to hear about your woes. You wouldn't happen to be in Central NJ, are you? We've had the same problem with our taxes constantly on the rise -- our mortgage is $950; taxes are $1600 per month! We've been planning to buy an RV since 2010. If you read my blog, you will see that we've had nothing but setbacks. Every year, we say that the house will be on the market "next spring". Been 3 years now, and still only about half way to being there. Our plans are to full time in the RV, but we can't buy it until we sell the house.
Since you phrased your question with "what would you do" I'm sure you'll get lots of diverse responses, as we all come from different circumstances and experiences. What would I personally do? My current plan is to sell the house (I need to make a lot of cosmetic repairs to get it market ready; selling it "as is" will not yield the money I need). Although I've been researching everything to death over the past 3 years, I know I will not be ready to run out and buy my new home on wheels the day after closing, so I would plan to find a small, cheap apartment with a short term lease, which will buy me some time to fine tune my plan of action and get my finances in order.
Personally, I think the most logical course of action for you would be to sell the house as quickly as possible so you can at least save on the high taxes and consider moving into a short term apartment in another county. It buys you some time to figure out what to do, while putting a few more $$$ in your own pocket.
I wish you all the best. Most importantly, try to have faith that things will work out somehow.
I'm somewhat confused as to the purpose of the RV. Is it just for use while you are building the house or is it something you are going to be using for recreation after the house is completed? Also, have you checked for zoning laws that might prevent you from putting an RV on land? In AZ, a county we were in had a limit to how long you could have an RV in place out in the county before a house had to be built. Another concern would be weather either very hot summers or cold winters can be rough in sitting in one place depending on your RV and how well you have prepared to the best of your ability.
Before I bought land somewhere, I would pick over the county and find out what plans they have for the future. Is the jail overcrowded? What are the conditions of roads and bridges? I would get a copy of their budget and maybe compare it to the one for your current county. And, the schools? I look what is happening there as far as student count and if they may decide they need more room. All of these expenses come in like a whirlwind.
Can't say what I would do in your position since every time we moved, if it was better, it changed or wasn't really better but they were keeping that fact a secret. This kept the dream of fulltiming alive, being able to be fed up and drive away!
It's good not know that we aren't the only ones who are facing wrenches in our fan, but I wouldn't wish these situations, yours or mine, on anyone. I am sorry to hear of your plights also. *Sigh*
Cheryl - I am going to read your blog.
We are in PA. OMG...your taxes are AWFUL! No wonder you don't have extra cash! Are you right in the city? We are in a rural area.
Our house is in need of a basement repair and some minor cosmetic stuff, so I know where you are coming from there...it's going to take some money to get the basement fixed. I was planning on taking out a small loan right before selling the house to fix the basement, then pay it right back out of the proceeds. As it is, we wouldn't get full selling price out of it either, just as in your case. We've got lots in common! I feel bad for you that you keep experiencing setbacks, but I understand that aspect as well. The day I realized our then current truck wasn't strong enough to pull what we were looking at, my heart broke. Having to buy a different truck was a setback for us, then we had to put over $4,000 in the engine to make it bulletproof. I wanted to scream.
Because of the bad local economy and lack of jobs, this is a bad time to sell a house. Our neighbors have been trying to sell for a few years with no luck. We were hoping things would be improved in three or so years. So, I don't know if selling the house right now is best, though it is tempting to think about.
SnowGypsy - The RV will be used for camping before and after, and a temporary living quarters when needed. At some point in the future, we would like to get out and go traveling with it also.
Good point on the laws/condition of the prospective new county.
You are right...things are hidden from the people. Our community is a microcosm of the macrocosm. And we are certain that our school board is getting/doing favors. A million dollars for an empty acre of land around here is so outlandish that I feel like we are in the twilight zone. Now they want to put a fancy new sign in front of the school that costs $92,000. Beam us up, Scotty!
Another possibility IF you have the money would be to buy a used 5'er and park it in the neighboring county at a private campground that permits long-term use instead of renting an apartment. The advantage of that is that you may save a bit of money and you won't have to move twice. You can also have a bit of time to look for the 5'er while your are waiting for your house to sell. Remember that you don't necessarily need to own the truck to tow it, since it is going to be parked for some time. If you buy it locally you can probably have it delivered to where you want it by the seller as part of the deal.