Re: Solar sham

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Re: Solar sham Terryc 01-29-2008
Posted by J. Clarke on January 30, 2008, 9:57 pm
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Terryc wrote:
> J. Clarke wrote:
>
>>> Err no. We borrowed what WE wanted to buy a beginner house that we
>>> were happy with. When we asked for $50K, the bank guy said "you
>>> can
>>> have $300K if you like". It took about 2 minutes to explain to the
>>> wife that $300K meant definitely having to wotk for the next 25
>>> years, no year off for study, long holidays, etc, etc, before we
>>> continued with the request for $50K.
>>
>>
>> In other words you decided that the payments on 50K were what you
>> could pay. Just as everyone else decides what payment they can
>> afford to make. Or do you think that you are the only person on
>> Earth who actually considered the cost of repaying the loan before
>> he decided how much he wanted to borrow?
>>
>> If the bank decided that they would loan you a billion dollars does
>> that mean that you could afford a billion dollars?
>
> This is getting OT, but it seems to be a difference between
> Australia
> and USA. Over here, the Aus banks only loan the amount they are
> happy
> that you can repay. You have to demonstrate this from providing
> income
> details. They then make their decsion based on your declared income
> and current conditions.
>
> So the bank was saing "based on your combined incomes, we are happy
> to
> loan you up to $300K". But we knew we didn't want to be wage slaves
> for decades and just said "no thank you, just the $50K for the
> fixer-upper".
>
> So we definitely were not like most people who maxed what they could
> afford.

The bank does a calculation and figures out what they can lawfully
sell you and then tries to sell you the most expensive loan they can
manage.

You are not obligated to buy that loan (and that is what you are
doing, you are buying the use of their money in exchange for an agreed
upon payment).

You decided that the price of that loan was higher than you were able
to pay and instead chose to purchase a cheaper loan. This is what you
decided that you could afford.

Only a fool lets someone else who has a vested interest in selling him
something decide what he can afford.

--
--
--John
to email, dial "usenet" and validate
(was jclarke at eye bee em dot net)



Posted by Terryc on January 30, 2008, 10:04 pm
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J. Clarke wrote:

> You decided that the price of that loan was higher than you were able
> to pay and instead chose to purchase a cheaper loan. This is what you
> decided that you could afford.

Sigh, whatever reality you want.

Posted by J. Clarke on January 31, 2008, 7:50 am
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Terryc wrote:
> J. Clarke wrote:
>
>> You decided that the price of that loan was higher than you were
>> able
>> to pay and instead chose to purchase a cheaper loan. This is what
>> you decided that you could afford.
>
> Sigh, whatever reality you want.

I don't understand why you are having so much difficulty with the
notion that you, not the bank, decides what you can afford.

--
--
--John
to email, dial "usenet" and validate
(was jclarke at eye bee em dot net)



Posted by Jeff on January 29, 2008, 11:07 am
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Terryc wrote:
> J. Clarke wrote:
>> Terryc wrote:
>
>> No point in insulating the walls if the insulation is going to get
>> soaked the first time it rains.
>
> Err,sounds like you've just posted your major problem. Obviously you fix
> the roof first. Caveat, if you are replacing timbers, make sure it s
> adequate for the final load; ie, corrugated iron, versus tile, vs PV
> installation, etc
>
>> Which is beside the point. Maybe you are wealthy enough that moving
>> all of your possessions out of your house, tearing it down, rebuilding
>> it according to your ideas, and then moving back in is an option. If
>> so I'm happy for you but you are decidedly in the minority. Most
>> people take what's on the market at the price they can pay.
>
> Well, the banks view was 6x times what we felt comfortable borrowing, so
> I guess I'm not most people.
>
> Over here, peep just build the new house around the old as they demolish
> it, bit by bit. frankly, few people do that as they either lack the
> skills or confidence.

Well, I live in a 1920 house and my dad built his house so I understand
these concepts.

The way houses are renovated is that you usually don't tear out
everything at once. You tear down one wall or one room at a time if you
are living in it! If you want to add a room, you preserve the load
bearing elements and add on. Then you fix the load.

As far as insulating walls, there's no reason to tear the walls down.
Blown in cellulose is fabulous stuff and requires only drilling one inch
holes. It also is tolerant of dampness. And it is cheaper than
fiberglass. I did my 2000SF over about 3 days with a helper (~ $300). If
your walls aren't insulated, and this is common in old homes, I highly
recommend it. Payback will be a couple years, perhaps sooner in a cold
climate.

Now, you can update R13 walls to R19 with a great deal of effort, but
a better return is in fixing air leaks (there's nothing cheaper to do
that will yield greater results) and by attacking the other weak links.
One R1 window will lose as much heat as the rest of an insulated wall.
Heatshrink film is cheap and will cut a window's loss in half. Add some
insulation to that window and you've nearly eliminated it's heat loss.

Jeff


>

Posted by J. Clarke on January 29, 2008, 11:59 am
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Jeff wrote:
> Terryc wrote:
>> J. Clarke wrote:
>>> Terryc wrote:
>>
>>> No point in insulating the walls if the insulation is going to get
>>> soaked the first time it rains.
>>
>> Err,sounds like you've just posted your major problem. Obviously
>> you
>> fix the roof first. Caveat, if you are replacing timbers, make sure
>> it s adequate for the final load; ie, corrugated iron, versus tile,
>> vs PV installation, etc
>>
>>> Which is beside the point. Maybe you are wealthy enough that
>>> moving
>>> all of your possessions out of your house, tearing it down,
>>> rebuilding it according to your ideas, and then moving back in is
>>> an option. If so I'm happy for you but you are decidedly in the
>>> minority. Most people take what's on the market at the price they
>>> can pay.
>>
>> Well, the banks view was 6x times what we felt comfortable
>> borrowing, so I guess I'm not most people.
>>
>> Over here, peep just build the new house around the old as they
>> demolish it, bit by bit. frankly, few people do that as they either
>> lack the skills or confidence.
>
> Well, I live in a 1920 house and my dad built his house so I
> understand these concepts.
>
> The way houses are renovated is that you usually don't tear out
> everything at once. You tear down one wall or one room at a time if
> you are living in it! If you want to add a room, you preserve the
> load
> bearing elements and add on. Then you fix the load.

That's adding a room, not decreasing energy consumption by thirty
percent.

> As far as insulating walls, there's no reason to tear the walls
> down. Blown in cellulose is fabulous stuff and requires only
> drilling
> one inch holes. It also is tolerant of dampness. And it is cheaper
> than fiberglass. I did my 2000SF over about 3 days with a helper (~
> $300). If your walls aren't insulated, and this is common in old
> homes, I highly recommend it. Payback will be a couple years,
> perhaps
> sooner in a cold climate.
>
> Now, you can update R13 walls to R19 with a great deal of effort,

Most houses built in the US since the '60s (at least in New England)
already have R13 walls. Upgrading to R19 requires that great deal of
effort, and that alone is not going to save thirty percent.

> but a better return is in fixing air leaks (there's nothing cheaper
> to do that will yield greater results) and by attacking the other
> weak links.

Yep, air leaks are a good thing to fix. But fixing them creates other
problems. If the house is really tight now your range hood stops
working unless you open a window or go to a reciruculating hood that
doesn't remove moisture and does a poor job on smoke and odors.
Bathroom vents stop working effectively too, so you get humidity
building up. In extreme cases the furnace may not be able to get
enough air to vent properly, leading to carbon monoxide buildup. Then
there's the whole radon thing .l. .

So don't just seal everything unless you're sure you understand the
consequences.

> One R1 window will lose as much heat as the rest of an
> insulated wall. Heatshrink film is cheap and will cut a window's
> loss
> in half. Add some insulation to that window and you've nearly
> eliminated it's heat loss.

Are you talking about putting cellulose or fiberglass over a window?
Yes, that will cut the loss but it also (a) defeats the purpose of the
window, (b) has to be removed to get ventilation through that window
in the summer, and (c) eliminates any possibility of solar gain
through that window.

--
--
--John
to email, dial "usenet" and validate
(was jclarke at eye bee em dot net)



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