Need Advice RE Purchasing Land

[bld999]

If it gives you a buzz, buy it. You will have the best financing answer as you look in detail into your circumstances. Most people are not close to debt free at 40, you seem to know what you are doing.

My wife and I have 5 rural acres that were seller financed, [nice way to go, leave the banks out of it] and used a real estate atty. to draw up a deed of trust. It has gained value and generally puts a smile on our faces when we are there.

Practical considerations and entitlement to build and use are important, as others have mentioned. Most of that stuff can be thrown in as an offer contingency if it is difficult to discover quickly.

Idaho gets high marks as a recreation state, there is only going to be more pressure on that in the future.

 

[JakeBrake]

“Land is the only thing in the world that amounts to anything.”
― Margaret Mitchell, Gone with the Wind

 

[chasesfish]

#1 - Do it. Land isn't the worst investment as long as you're not trying to speculate


#2 - Bank financing is out there, but it is really cost prohibitive on land. Use your Heloc or a margin line on your taxable accounts, whichever is less. I'm sure you'll pay it back quickly with your habits.

Enjoy.

 

[Jack_Pine]

When we bought vacant land the first time is was owner financed.

The second time was through a bank but the longest they would do was a 5 year balloon at a slightly higher interest rate. A local bank was more willing to do this. We paid it off before the 5 year period.

 

[Keim]

CHasesfish: What is a margin line?

 

[SkisALot]

If you plan to get liability insurance, check to make sure a company will insure it. In the western states at or near forest land most standard companies will no longer insure anything, many high risk companies will no longer insure (some of it depends on how much risk they have in the area), and if they do, it can be very expensive. Many people in these areas are going "bareback" because either they can't get any kind of insurance or the cost is prohibitive.

 

[MRG]

Have you looked into what connecting to power, water might cost. Assuming you want that sometime in the in future.

DW and I were ready to pull the plug on 20 acres, until we learned it would cost as much to get electricity there as the 20 acres cost. The electric co-op said too bad you didn't do this 2 years prior, at that time they ate the cost, knowing it would be made back over time.

 

[Jack_Pine]

By us the cost is $5 per foot. We already had electric at a barn but had talked about putting the house way back. Probably won't due that due to cost and other reasons.

 

[braumeister]

I once did pretty much exactly what you're considering, but in Colorado.
Fifteen years later, I sold it for just about what I paid for it plus all the property taxes I had paid over the years, so I roughly broke even, discounting inflation.

Would I do it again? No. It worked out OK for me, but I wouldn't recommend it.

 

[chasesfish]

CHasesfish: What is a margin line?

A margin line is a line of credit secured by your taxable investments. You can get up to 50% of their value in a line of credit, typically at a good rate. The risk is if you get part 75% loan to value, you have to put in more money or your stocks will be liquidated to payoff the line.

 

[Keim]

Denouement

The rest of the story...

Went and visited the land I was thinking about. Very nice; beautiful location. But it did not make my heart sing. For $50k my heart needs to sing! Am continuing to look.

Am now going to look at a 1/2 acre spot (in a very small town-320ppl-surrounded by forest) that has a garage/storage building, RV spot, water and power for $15k. Nearby river and many trails. Less land for me to care for, but lots of public lands nearby to explore. And, a building to store my RV and prospective ATV in.

Advice from all in this thread has been appreciated. It has helped me narrow down what I am looking for. Thank you.