I need Advice from the Tacoma world.

You sound a lot like me, I was (still am) fiscally conservative.
My daughter is itching to buy a home too, she’s going to wait a bit and save money for now. This inflationary climate won’t last forever and the housing market is due for a correction. So if you buy now just be prepared to take the hit when prices fall.
I wish you the best of luck!

 

Another great point!
If one were to buy now,,,, better plan to be there for a quite a while, because there’s a very good chance you may owe more than it’s worth in a couple of years.

 

The below would be MY approach to the issue posted as I see it. You'll know the details and hold the cards to be played...

We all have to sort trhough decisions... Getting input is not a bad idea. - Good Luck!

I would sell the truck. I would focus my efforts on family topics before spending $$ on vehicles. They are not a priority for me. Timing may be good now before used car prices go down further. I believe you should be able to sell at a price which spares you the full brunt of the new car depreciation. - Depreciation is what would prompt me to sell sooner rather than later...

Post the Taco as is - maaaaybe you'll find the right buyer. AND also Post the extras separately. Sell those as you find takers. It happens. At the same tme, be ready to take stuff off if a buyer is only interested in the truck and not the extras. Let the market decide.

Use your advantages to your advantage. @Bill400 is on to a good approach... Can you work out a deal with your FIL? Can you work-up a remodel/addition - maybe an purchase plan or shared ownership in the final product that would benefit both of you?
You might figurre out a plan that produces value for both of you...
I would try to find a solution along those lines. It will keep you in your low housing cost and advance your family into a better housing position - and you may create some value without much outlay. (And the cash from your Taco may get you a good portion of the way there - at least on "home remodel Phase1".)

I once hired this lady who was well qualified, but turned-out to be a stress case every day. Eventually, she shared that she had severe financial troubles. I assumed that she had family money as I knew how much I was paying her (a solid salary that could well support a family of 4...) but I knew it was not enough to pay for her uber fancy car, uber fashionable attire, designer handbags, etc... Turns out she lived in a trailer alone, and she spent all her $$ showing off her (non-exitent) wealth and was about to be bankrupt... I do not understand how people often have quite expensive cars when the rest of their finances are not in line.
I'm always struck with an urge to sell the cars and reallocate that $.

To each their own - but it makes sense to support one's family with the basics before dishing out for luxuries.

THe market is crazy. But it has been crazy for quite a while (Decades).

My sister bought in a 'horrid' market 2 years ago against all advice. (I was in favour). She is now sitting pretty with a solidly higher value (able to take a good hit), and an ultra low interest rate -under 2.2%- wishing she had borrowed a LOT more!). You are un-likely to lose in real estate for a primary residence - as long as you don't plan on moving. You might see a slight dip in home values and maybe interest rates, but you will be fine in the long run.

I would say keep on the look-out in the case you cannot work something out with the FIL. (seems like your best path today). You might get lucky. When interest rates come down, there will be MANY buyers looking to jump back inthe market. Prices will go up disproportionally due to pent-up demand as buyer sit on the sidelines. Some will be desperate.
You can re-finance a high interest loan in the future. You cannot re-negotiate your purchase price.

Best of luck mate!

PS. I've lived in 6 US states and visited 48 overall. When coming to the US from abroad and able to choose where to live without constraint (something I've done several times); I've always chosen to move only to a place somewhere within a few miles of the Pacific ocean... Or I'd rather stay abroad.

 

I appreciate your issue as I have been there before. My opinion is sell both vehicles. Replace them with the cheapest used that seems reliable. Use that monthly cash towards a better home whether renting or purchase. Maybe in-laws could help with down payment? Kids need their own room and decent housing out ways vehicles every time in my opinion. You could be waiting forever for the "right time". You can have treats like nice vehicles when you're empty nesters. Your kids should be your priority, it will pay off.

 

There will never be a perfect time to buy. Have everything in place for when a good opportunity presents itself. If you have equity in the truck, sell it and put cash into rolling 1 month CDs. Easy 5% and you won’t need that cash in less than 30 days if an opportunity presents itself.

 

Above is what I've learned while looking at and considering "my dilemma". I've received a lot of advice about great options but I'm asking myself "Self, what have I really learned".

Let's see. 1) What I know is I have a shit-ton of options. 2) WoW, this isn't so bad, "I'M BLESSED". 3) I'm not desperate. 4) I can control not allowing myself to become desperate. 5) I could do all of the above or none of the above.

What I'm not going to do is nothing. What I am going to do is talk to my wife and:
- I'm going to take action in a number of ways but I'm not going to worry about the things I have no control over.
- life and planning is not as binary as the choices and solutions that have been laid out for me unintentionally make them sound.
- there is no one answer unless I decide for there to be one and only one solution I want to take.
- I'm not going to run on blind faith but I know HIS Plan will be Perfect and I'm going to read and watch the "leaves" and Believe.

 

Who's paying 5% on a 1 month CD? Most 5% CD's I've seen are 9 months to a year.

 

There’s high yield savings account paying close to that. I have two at the moment.

 

APY, I should have clarified. Thanks.

 

they were saying that back in 2017 when i bought a house. and then prices in my area doubled in 2020. my realtor really advised me to hold off if i could to wait for that 'correction' that never came. given current inflation, it would take a dramatic world event that guts the US currency to peso-levels to drop inflation enough for this idea to be feasible. and then we're all going to have some other significant problems...

interestingly, this thread touches on a lot of points that another recent thread started discussing-- the other OP had a different financial situation, but much of the advice in that thread is still sound advice.
https://www.tacomaworld.com/threads/debt-relief.815078/

i sympathize with your situation, and this is the point to sit down first with your wife, and then maybe your in-laws if the addition idea is a better solution, and be honest. the first thing with your wife is to admit that your current financial situation is not a satisfactory long term solution to your housing situation. the difficult part of this is that it requires lifestyle alterations. the easy options to look at are going to be cheaper cars without a payment(be sure to keep in mind that most used vehicles will require some maintenance, so $5-20k in savings to deal with those surprises is an extra budget item to maintain), cutting out current entertainment/food expenses-- maybe you're going out every other day to nice restaurants, or shopping name-brand stuff, where options like aldi make a difference. or maybe you're subscribed to prime, netflix, disney, hulu, and paramount all at the same time.

 

Im assuming your getting a mortgage loan, yes you would need to get rid off all debt first.And in my opinion the celestial color is atrocious, its not even a cement color and has some weird greenish tint to it under the sun

 

Wouldn't be my first pick, but it's better than sinus infection green or Campbells neon tomato soup.

 

What about asking the in-laws about adding on to the home? You split the cost? A win-win for both of you?