Should I go into debt to buy a house at this time in our economy?
April 26, 2010 by Bob Livingston
I have a question. Would you go into debt to buy a house at this time in our economy? I’m in a tough spot. We took my father out of a nursing home last October due to neglect. Ever since, we have been traveling between two houses to take care of him, but it is getting to be a real strain on our family members who care for him day in and day out. My husband and I are debt-free, renting a house, and my father is renting the house we grew up in as kids (my brother owns it. It is not paid off).
If we move to a bigger house with my father, we would be relying on his fixed income (pension and social security) to make the payments plus my husband’s modest salary. Neither house we are in at the time is big enough for all of us.
If the county goes into hyperinflation, I don’t think we would be a able to get to my dad’s, who is 12 minutes (4 miles) from our house. I feel the need to get us under one roof for the rough times that are surely ahead. My dad is 89 with Parkinson’s and I am scared I won’t be able to get diapers and medicine and take care of him if there is a crash. He feels very secure when I am with him.
Will people who just have assumed a mortgage have their house repossessed during a crisis or will too many people be in the same boat? I’ve tried to look this question up online and they basically say to rent right now. Maybe we should just get in a bigger rental verses buying?
We rent on a farm in Illinois and have chicken’s, goats, eggs, and big garden. My dad’s home is in a subdivision. If we move, we would buy a small farm, probably in Kentucky.
You are in a tough spot, and I feel for you and your predicament. My first suggestion would be that you explore the possibility of adding on to the house you currently live in so that you can make a room for your father. In addition to giving you more room, if it’s done correctly it will increase the value of the house. If that is not possible, then next I would suggest you seek another house to rent. Since you live on a farm with some livestock and a garden you are in good position should the currency collapse that we are expecting occur. I would hate to see you give that up.
I would also hate to see you take on debt if you can avoid it in any way. Please explore all options before making that decision. Purchasing a home and taking on debt will limit the amount of funds you have at your disposal to prepare for the coming collapse buy buying storage food and gold and silver.