This is related to housing, investing, planning, and saving
I hope you're all having a great morning. Thanks for reading, I appreciate any advice, and understand I'm an idiot for the situation I'm in.
This first situation is more so maybe suited for another sub.. but I'm struggling to understand what is "right" versus me being a push over in handling how my ex (unmarried) and I should proceed with a property I own which he made contributions to..
The second situation is around whether or not its economically smart to either pay off my ex for "his portion of the house", which would require me to sell a large portion of stocks I own, or sell the house. Additionally, I'm curious if its practical for me to even try keeping the home when I can hardly be comfortable with the payments each month.
I live in Arizona, we're in our mid-twenties.
- First situation
Five years ago, my ex purchased a condo in his name. We moved in together, and outside of the costs to purchase the condo (down payment, fees), we split everything 50/50 (mortgage, repairs, bills, etc.) Condo was bought at around $125k if I recall correctly.
Earlier this year we refinanced the condo and used the refinance money towards a new home, new home renovations, and later sold the condo. Due to him owning the condo at the time of the new home purchase, I am the only individual on the title, mortgage, and loan for the new house. House was purchased for around $265k.
I recently ended the relationship, and my ex stated he wants repayment for the costs he put into the new home, or for us to sell and split profits in half. This number ($20k) includes purchases such as flooring, labor, as well as items and labor his parents paid for based off of agreements between him and his parents. His father doesn't/didn't really involve me in what he was doing and really only spoke with my ex about helping.
The renovations were all a result of the condo sale.. so I'm assuming I'm going to have to foot this $20k he is requesting.. though part of me is confused on how hes getting this number, which I understand is on me to figure out. Part of me is also being selfish in that I've taken financial responsibility for this property and I wouldn't have expected or even asked for anything had we split while I was living in his condo. In the end, I'm pretty sure I'm just being a terrible, greedy person. Should I involve a lawyer if I decide to "buy him out"?
Again, the other option is to sell the property, which he wants 50% of profits.
Also of note, there are no contracts involved in this.. gifted money towards the escrow came attached with a gift letter for loan purposes and any work his parents did, from my perspective, was gifted. They're well off, retired, and enjoy this sort of thing.
What is he entitled to?
- Second situation
If I were to pay him the $20k he is asking to "buy him out" I would be left with around $5k in savings, and about $10k in PYPL stock.
In my etrade, I currently have about $30k in PYPL stock, $20k of which I'd need to sell to pay my ex for the home buyout.
I know it's difficult to estimate whether or not my property will appreciate past the worth of my stocks, but essentially that is my first question.. is whether or not it is sensible to trade $20k worth of stock that's been steadily rising to keep a home that I can hardly comfortably afford (which I will get to now).
Side note, I'm not a trader or investment type person whatsoever. The fact I have stocks is because of my employment and the discounts I get under ESPP. I understand the market fluctuates, and the dollar value for the stocks I own is estimated based off of this morning.
If I paid my ex his $20k I would be left with around $5k in savings and $10k in PYPL stock. Every other week I bring home $1,438 which is after insurance, 401k (approx $100 per check), and ESPP (approx $250 per check). At the very least, I'd like to continue contributing to my 401k. I'm a salaried employee so this number is steady.
My mortgage is $1,710. Water and electric is avg $325. And random bills (auto insurance, phone, internet) come out to $270, leaving me with roughly $570 extra each month (est. 4 weeks per month) to dedicate towards savings, food, entertainment, car maintenance, and unexpected stuff. Side note, my car is paid off, reliable, and I currently live less than 5 miles from my work. Additionally, my lifestyle is pretty lowkey.
I'm absolutely open (and wanting) roommates because it's ridiculous for one person to live in a 1500 three bedroom house, and I'm thinking $500 per room each month is fair, perhaps $600 in the summer depending how cold they want the AC at. However, I'm not sure I'm in a position to be a fully fledged landlord, so I can only assume my "renters" will be people I know, thus opens the chances they're not as reliable or consistently living there. This is all besides the fact that I hate conflict and difficult conversations, would I need to have them.
Again, any advice is appreciated. I'm well aware that I'm an idiot for the situation I've put myself in with this home, and also well aware if my jaded attitude is making me into a greedy, selfish, person with how I'm treating my ex.
Thank you in advanced!
Submitted November 13, 2018 at 09:32AM by Nightlight9876 https://ift.tt/2PQR8Pl
