Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Land to buy
Old 03-11-2018, 03:08 PM   #1
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 66
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?
__________________

glinka is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-11-2018, 03:22 PM   #2
Thinks s/he gets paid by the post
grasshopper's Avatar
 
Join Date: Oct 2010
Posts: 1,748
Is it raw land so a loan is out of the question?
__________________

__________________
For me experiences are not good or bad, just different
grasshopper is offline   Reply With Quote
Old 03-11-2018, 03:52 PM   #3
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 66
Yes, just 35 acres of land.
glinka is offline   Reply With Quote
Old 03-11-2018, 04:06 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 5,518
borrow against the property you already own.

How much is the 35 ac lot going for ?
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 03-11-2018, 04:59 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,175
Is there a possibility of owner financing, with a sizable down payment-perhaps 35-50% down and a 5-10 year note?
brucethebroker is offline   Reply With Quote
Old 03-11-2018, 05:08 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 5,518
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.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 03-11-2018, 05:14 PM   #7
Thinks s/he gets paid by the post
street's Avatar
 
Join Date: Nov 2016
Posts: 1,295
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.
street is offline   Reply With Quote
Old 03-11-2018, 06:14 PM   #8
Dryer sheet aficionado
 
Join Date: Oct 2017
Posts: 47
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.
Stormy Kromer is offline   Reply With Quote
Old 03-11-2018, 07:24 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,644
Quote:
Originally Posted by glinka View Post
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?
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?
calmloki is offline   Reply With Quote
Old 03-11-2018, 08:31 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Florence, AL/Helen, GA
Posts: 2,443
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.
Bamaman is offline   Reply With Quote
Old 03-11-2018, 10:13 PM   #11
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 66
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.
glinka is offline   Reply With Quote
Old 03-11-2018, 10:24 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 5,518
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
Sunset is offline   Reply With Quote
Old 03-11-2018, 11:07 PM   #13
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 66
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.
glinka is offline   Reply With Quote
Old 03-12-2018, 01:00 AM   #14
Recycles dryer sheets
 
Join Date: Sep 2011
Location: Placerville
Posts: 458
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.
skipro33 is offline   Reply With Quote
Old 03-12-2018, 06:30 AM   #15
Full time employment: Posting here.
Markola's Avatar
 
Join Date: Nov 2013
Posts: 622
Can you get a local land trust interested to buy it and protect it?
Markola is online now   Reply With Quote
Old 03-12-2018, 07:18 AM   #16
Recycles dryer sheets
 
Join Date: Oct 2014
Posts: 485
Quote:
Originally Posted by skipro33 View Post
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.
sounds like a good movie.
__________________
-Big Dawg-FI since 9/2010. ER in 2015(failed-mentally not $$). Now back for TMY's.

" 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-
Bigdawg is offline   Reply With Quote
Old 03-12-2018, 08:09 AM   #17
Full time employment: Posting here.
 
Join Date: Oct 2009
Posts: 541
Could you get a written 1st refusal from the owner?
That could allow you 1st chance if he gets another offer.
__________________
You do not have a soul. You are a soul. You have a body.
folivier is online now   Reply With Quote
Old 03-12-2018, 08:51 AM   #18
Thinks s/he gets paid by the post
zinger1457's Avatar
 
Join Date: Jul 2007
Posts: 1,633
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.
zinger1457 is offline   Reply With Quote
Old 03-12-2018, 08:55 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,175
Quote:
Originally Posted by Bamaman View Post
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.
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.
brucethebroker is offline   Reply With Quote
Old 03-12-2018, 09:48 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 5,518
Quote:
Originally Posted by zinger1457 View Post
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.
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.
__________________

__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Buy, buy, buy! Dr. Doom said so. NW-Bound FIRE and Money 16 10-23-2013 04:09 PM
Found 15 acres, loan to buy land, loan to build... how is it done? jIMOh FIRE and Money 17 11-05-2010 12:18 PM
Should I pay off land or buy a rental house? wade5628 FIRE and Money 20 10-30-2010 10:07 AM
Recession over? Buy, buy, buy? NW-Bound FIRE and Money 42 05-27-2009 04:53 PM
buy and build or just buy land and wait ? lonedog Life after FIRE 11 02-13-2006 09:55 AM

 

 
All times are GMT -6. The time now is 06:10 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.