Time to buy...

Discussion in 'General Discussion' started by kckndrgn, Mar 19, 2008.

  1. kckndrgn

    kckndrgn Monkey+++ Moderator Emeritus Founding Member

    Time to buy land? This would be land for a future home. Both the wife and I want to live in the "country", preferably in an area with lots of trees, wildlife and privacy. Our plan has been to get some land, put a small cabin or single wide mobile home and use it as a retreat and hunting area for a few years.

    We are looking in the mid-western part of TN and have found quite a few candidates.

    Now, we wouldn't be able to buy the land outright, that would be nice but it ain't gonna happen, and we are within 3 months of being debt free (except the house).

    Is now the time to put a contract on some land, or wait another couple of months?

    Lot sizes that we have found range from 20 acres to 60 acres.

    What are your thoughts and opinions?
  2. monkeyman

    monkeyman Monkey+++ Moderator Emeritus Founding Member

    My thoughts would be that it would be risky if you couldn't do it outright. If the economy tanks like it appears it may then job security may plummet as well and even if the jobs stay it could get REAL hard to make the payments on the land along with the house where you live.

    I would say that if you were going to do it though then it might be best to try to do some creative financing and paper work for it. Say like rather than getting a new loan for it find cheap land and pull equity from your house rather than a new loan to buy it outright then set up a trust or corporation that owns the land so that if worst comes to worst you loose the house but still have the land to move to and the bank cant go after it.

    As far as timing, thats a double edged sword. If you wait its likely for the prices to go down BUT its also likely to get harder to get a loan even by pulling equity AND your house will also be worth less as prices drop.

  3. misty

    misty Monkey+++

    www.realtor.com and www.lendingtree.com are the places we used.

    I would buy what I wanted now rather than later. I think it will be harder to finance loans as time goes. The value of the dollar is falling so spending money now makes sense. For example a loaf of bread costs 1.25 now but in 6 months it will cost 2.00. Same size loaf but costs more. For 10.00 you can buy 6 items but that same 10.00 in 6 months will only allow you to buy four of those items. I'd rather buy the 6 now and save them until we need them. I plan to have enough toilet paper saved to build a small fort out of it! LOL
  4. ghrit

    ghrit Bad company Administrator Founding Member

    See also landandfarm.com. Very good search by map feature.
  5. badkarma

    badkarma ΜΟΛΩΝ ΛΑΒΕ

    land alone is hard to finance as it is. look for 35-50% down or an 9-12% rate. banks and mortgagers will advertise better rates and terms, and can give them...for secured loans. so...if you're willing to put your home up as collateral, you could get good terms.

    foreclosed land is an option, but don't anticipate bargains....the value has already dropped and most equity has been absorbed in the fees and costs of a freclosure action. my advice would be to find land you want...at a price you can live with, and buy it.

    as you improve the land, the value will go up.
    put a light pole and septic tank on it +10K in value
    grade and clear a homestead site +15K in value
    things of that nature.
  6. groovy mike

    groovy mike Immortal

    I think it will go lower.
  7. kckndrgn

    kckndrgn Monkey+++ Moderator Emeritus Founding Member

    Thanks for the input all. Misty & Ghirt - those are the sites we've been using, along with local real estate agents sites.
    Yes I think the prices may go lower, but not much.

    We'll keep lookin' for now. Who knows, maybe this fall I'll have a place to hunt :)
  8. TNZ71


  9. <exile>

    <exile> Padawan Learner

    kckndrgn are you a veteran? If so look around for some veteran land programs in your state, the one here in TX offers a competitive interest rate and low down (>=5%).
  10. franks71vw

    franks71vw Monkey+++

    Umm greater then or equal to 5% or do you mean <= less then or equal to 5%
  11. <exile>

    <exile> Padawan Learner

    I'll blame it on too much time driving yesterday (11 hours in a car)...thanks for the correction.
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