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03-11-2018, 03:08 PM
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#1
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Recycles dryer sheets
Join Date: Jul 2007
Posts: 68
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Land to buy
A piece a land across the road from our cabin came up for sale. Problem is we owe small amount on cabin, equity loan on our home. What is the best way to buy the land? If I take too much out of 401k tax rate would probably go up. Don't really want to owe big land loan but what is best?
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03-11-2018, 03:22 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Posts: 2,464
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Is it raw land so a loan is out of the question?
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For me experiences are not good or bad, just different
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03-11-2018, 03:52 PM
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#3
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Recycles dryer sheets
Join Date: Jul 2007
Posts: 68
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Yes, just 35 acres of land.
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03-11-2018, 04:06 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,010
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borrow against the property you already own.
How much is the 35 ac lot going for ?
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Fortune favors the prepared mind. ... Louis Pasteur
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03-11-2018, 04:59 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,789
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Is there a possibility of owner financing, with a sizable down payment-perhaps 35-50% down and a 5-10 year note?
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03-11-2018, 05:08 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,010
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Wondering about the motivation, as sometimes I think about buying some property near where I already have a property.
Why do you want this property, is it to keep the view or privacy or just because they come up so rarely ?
Because it's across the road it's not quite as useful as if it was beside your property.
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Fortune favors the prepared mind. ... Louis Pasteur
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03-11-2018, 05:14 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,417
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Not sure what kind of money you are talking about but I would take a loan against the property you own. If you have the cash pay cash done deal.
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03-11-2018, 06:14 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Posts: 1,137
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Buy it whatever it takes, this is the only chance you'll get to pick your neighbor if you ever decide to sell it. I live in the boonies and am waiting for a chance to buy a neighboring property just so I can control it's future.
Borrow the cash with some equity somewhere.
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03-11-2018, 07:24 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,281
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Quote:
Originally Posted by glinka
A piece a land across the road from our cabin came up for sale. Problem is we owe small amount on cabin, equity loan on our home. What is the best way to buy the land? If I take too much out of 401k tax rate would probably go up. Don't really want to owe big land loan but what is best?
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Can you roll your current home loan into a larger loan that would cover the land purchase? Like maybe you only owe 15% on your cabin loan and you can borrow up to 80% loan-to-value on the cabin?
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03-11-2018, 08:31 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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Put the 35 acres up as collateral and just borrow enough on the cabin for the down payment. Many credit unions and S&Ls keep relatively small real estate loans in house and don't sell them into the mortgage system. They can be lenient on terms, interest rates and closing costs.
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03-11-2018, 10:13 PM
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#11
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Recycles dryer sheets
Join Date: Jul 2007
Posts: 68
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Cabin is on 4 acres. The 35 is heavily wooded and good for hunting. Sounds like I shouldn't hit the 401k For much, take out loan on home or cabin. Hate debt in retirement but don't have enough Roth to take care of it.
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03-11-2018, 10:24 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,010
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How built up is the area, doesn't sound built up if you are planning to buy it to hunt. So it could sit for sale for many years. Rural property often takes a long time to sell.
Honestly, it does not sound like you have a lot of $$, so buying the land simply to hunt is a very expensive way to hunt. Currently you could probably hunt on this land or other land for free by simply asking, or paying a low price like $100.
I say this thinking the land is sitting idle and not being used at all, since you didn't mention taking over any business opportunity on the land.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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03-11-2018, 11:07 PM
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#13
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Recycles dryer sheets
Join Date: Jul 2007
Posts: 68
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There are other reasons for the land, from tapping trees for syrup to riding and driving horses and there is the fact that nobody could build across from us. The two miles of road on the opposite side of cabin has two houses. The present owner was going to build and decided to build further north.
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03-12-2018, 01:00 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Sep 2011
Location: Placerville
Posts: 1,788
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When I moved into my home, both acreage parcels on either side of mine were vacant. After a while, I realized, I'd hate it if anyone built on them. Over time, they each came up for sale, but I thought the prices were way too high. But evidently they weren't as they sold. One side the guy is pretty cool. The other side is now owned by husband/wife lawyers. I call her 'Crazy Goat Lady' as she fenced off a bit over an acre and put 30 goats on it. Dear LORD! What a STINK! And not a dang thing I can do about it.
I recommend you buy the parcel and use what ever means you can. I'm always getting those checks in the mail for cash advance offers on credit cards. $15,000 for zero interest for 2 years usually. Use that. Use your 401K. Cash in a life insurance policy, but what ever you do, do NOT let Crazy Goat Lady move in next door to you!
Oh, and just when I thought it wouldn't get any worse, she bought 2 roosters! TWO!!! It's like dueling banjos only with roosters every morning until at least noon. And a dog that barks. At the goats. And when the roosters crow. New York City is probably quieter than it is now with her next door.
Along with the roosters, she has a couple dozen hens. Not particularly noisy, but they've attracted coyote and skunks. Now at least once a week the whole place stinks of skunk and I haven't seen my cat in a couple weeks.
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03-12-2018, 06:30 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,927
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Can you get a local land trust interested to buy it and protect it?
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03-12-2018, 07:18 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,537
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Quote:
Originally Posted by skipro33
When I moved into my home, both acreage parcels on either side of mine were vacant. After a while, I realized, I'd hate it if anyone built on them. Over time, they each came up for sale, but I thought the prices were way too high. But evidently they weren't as they sold. One side the guy is pretty cool. The other side is now owned by husband/wife lawyers. I call her 'Crazy Goat Lady' as she fenced off a bit over an acre and put 30 goats on it. Dear LORD! What a STINK! And not a dang thing I can do about it.
I recommend you buy the parcel and use what ever means you can. I'm always getting those checks in the mail for cash advance offers on credit cards. $15,000 for zero interest for 2 years usually. Use that. Use your 401K. Cash in a life insurance policy, but what ever you do, do NOT let Crazy Goat Lady move in next door to you!
Oh, and just when I thought it wouldn't get any worse, she bought 2 roosters! TWO!!! It's like dueling banjos only with roosters every morning until at least noon. And a dog that barks. At the goats. And when the roosters crow. New York City is probably quieter than it is now with her next door.
Along with the roosters, she has a couple dozen hens. Not particularly noisy, but they've attracted coyote and skunks. Now at least once a week the whole place stinks of skunk and I haven't seen my cat in a couple weeks.
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sounds like a good movie.
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-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie
" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
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03-12-2018, 08:09 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Oct 2009
Posts: 1,986
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Could you get a written 1st refusal from the owner?
That could allow you 1st chance if he gets another offer.
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You do not have a soul. You are a soul. You have a body.
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03-12-2018, 08:51 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 3,222
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I bought some acreage years ago with the intent to build a house on it, took out a 2nd on my house to pay for it. Make sure to check what you'll be paying in property taxes for the land and budget for it, for the lot I bought it wasn't insignificant, about the same as the property taxes for my house.
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03-12-2018, 08:55 AM
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#19
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,789
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Quote:
Originally Posted by Bamaman
Put the 35 acres up as collateral and just borrow enough on the cabin for the down payment. Many credit unions and S&Ls keep relatively small real estate loans in house and don't sell them into the mortgage system. They can be lenient on terms, interest rates and closing costs.
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Great point, those are "portfolio" lenders, and if they keep the loan in house, they are not subject to the stiff regulations needed for government backed loans. Local lenders may even be familiar with nearby property values which is also a plus.
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03-12-2018, 09:48 AM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,010
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Quote:
Originally Posted by zinger1457
I bought some acreage years ago with the intent to build a house on it, took out a 2nd on my house to pay for it. Make sure to check what you'll be paying in property taxes for the land and budget for it, for the lot I bought it wasn't insignificant, about the same as the property taxes for my house.
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Besides property taxes, OP might need to get insurance to cover the land, although a rider on his home insurance could probably cover it cheaply.
Still the view of forest across from the OP could be worth the $500 -> $1,000 in yearly cost.
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Fortune favors the prepared mind. ... Louis Pasteur
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