House rich and cash poor?
I live near San Francisco area. The house price here has gone through the roof in the past 10 years.
People considered us lucky because we bought a house 10 years ago and it's price has tripled. But we sold it in 2004 and got another house in the neighborhood we really like and a big mortgage.
I retired last year, planning to stay home with our children (twin boys). It looked feasible until we started remodeling Jan. last year. The house we bought in this great area is a 50 years old, 2300sf, 3 bedrooms/3 bath, and ranch style home. All the bathrooms are original, windows are single pane aluminum. After settled in for 6 months. We started remodeling. We did our hallway bathroom first as a test run, then the master bedroom suite. This March we started our kitchen/family room combo which enclosed our back patio adding about 250sf. This gives us another 10x11 tiny guest bedroom.
Oh, man, our money drains so fast. Before I knew it we have spent 300k and I still don't have a kitchen today.
So I went back to work in May to make some extra cash to pay the remodeling.
After cooking in the kitchen for 4 months, I hope we'll have an average 4bed/3bath, 2500sf ranch home soon. The problem is we have no money left in the bank. I cannot see a day when I can retire at this moment.
I will never buy a house need so much work again.
Anyone is in the same boat? Any advice?