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?
Land to buy
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grasshopper
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Is it raw land so a loan is out of the question?
Sunset
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borrow against the property you already own.
How much is the 35 ac lot going for ?
How much is the 35 ac lot going for ?
brucethebroker
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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?
Sunset
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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.
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.
street
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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.
Stormy Kromer
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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.
Borrow the cash with some equity somewhere.
calmloki
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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?
Bamaman
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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.
Sunset
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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 $$, so buying the land simply to hunt is a very expensive way to hunt. Currently you could probably hunt on this land or other land for free by simply asking, or paying a low price like $100.
I say this thinking the land is sitting idle and not being used at all, since you didn't mention taking over any business opportunity on the land.
Honestly, it does not sound like you have a lot of $$, 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.
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.
skipro33
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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.
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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Markola
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Can you get a local land trust interested to buy it and protect it?
sounds like a good movie.
folivier
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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.
That could allow you 1st chance if he gets another offer.
zinger1457
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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.
brucethebroker
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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.
Sunset
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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.
Sunset
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Why would the owner do that ?
I was thinking a similar thing, offer the owner $X for an exclusive option to buy the property in the next 2 years for $YYY dollars.
Basically tie up the property for 2 years.
Things have moved quicker than I thought they could. We made offer, counter offer, and final agreement. Decided to put 20% down and finance balance. Problem now, when the Experian snafu came up I froze our credit reports. So do I have to open all the reports?
pb4uski
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I think if you ask the bank or mortgage company that you are dealing with who they use that you can unfreeze just that credit reporting bureau.... call them and tell them that you froze your credit reports and need to know which ones that you need to unfreeze and see what they say.
Had to temporarily unfreeze all three reports, as the bank takes all three and takes the average score. It' always something, now faced with how much I want to take out of 401k. The 20% down is not a problem. But have to decide if I want to take bigger portion to get payment down. Again I hate to owe much now in retirement, but so lucky to have ability to have so much.
To start congrats on your future land purchase. If you live or have property in a rural area it's not a bad idea to buy the property around you if possible. It's called controlling your neighbors to prevent people from moving around you. In some cases this may even mean paying a premium price for the property. I just experienced this unfortunately and I need to purchase one more piece to seal my own neighborhood. ��
