Wife and I are considering purchasing 5 acres for $50k. This property is currently considered agricultural. We have no current plans to develop it. It is in the boonies near national forest and park land. It is a place we would go with our camper.
We are in our early forties. Debt free including the house. Mid five figure income.
I am looking for advice in two arenas:
1. Financing
The options I see are:
a. Pay cash out of our taxable investments. This would seriously deplete them. Probably too much. But we could easily pay, perhaps, half. What kind of tax hit would I take?
b. Use our HELOC to pay, than pay back the HELOC. Being debt averse we would do this as quickly as possible. Perhaps pay half from our taxable investments and 1/2 from the HELOC...
c. Get a conventional mortgage. Pay it down quickly.
Am I missing anything? Any pitfalls or advantages to any of these routes? If I pay some from taxable, and the rest with HELOC would it be wise to structure around taxes? (I.E. make sure I don't put myself into the next tax bracket?)
2. Inspections and other things to consider
This is bare forest land adjacent to a mountain lake. Lots of trees, no power, well, or septic. Any inspections I should consider?
Thanks for any insight you can provide.
We are in our early forties. Debt free including the house. Mid five figure income.
I am looking for advice in two arenas:
1. Financing
The options I see are:
a. Pay cash out of our taxable investments. This would seriously deplete them. Probably too much. But we could easily pay, perhaps, half. What kind of tax hit would I take?
b. Use our HELOC to pay, than pay back the HELOC. Being debt averse we would do this as quickly as possible. Perhaps pay half from our taxable investments and 1/2 from the HELOC...
c. Get a conventional mortgage. Pay it down quickly.
Am I missing anything? Any pitfalls or advantages to any of these routes? If I pay some from taxable, and the rest with HELOC would it be wise to structure around taxes? (I.E. make sure I don't put myself into the next tax bracket?)
2. Inspections and other things to consider
This is bare forest land adjacent to a mountain lake. Lots of trees, no power, well, or septic. Any inspections I should consider?
Thanks for any insight you can provide.