What would you do if you had to decide between these different real estate situations and you had a family of 5+? Buy a 10 acre piece of land for $150,000 that's 20 minutes from town, subdivide half of it then build a house to live in on the other half with the profits you made. Buy a 6-7 bedroom duplex in town with a .40 acre piece of land for $175,000- $200,000, live in the upstairs and rent out the downstairs. Buy a 2 bedroom house in town on an acre of land that backs the river for $150,000, then add more bedrooms in the unfinished basement area. Or buy a 3-4 bedroom house on .36 acres for $120,000 that's 15 minutes from town and needs work. These are the different options we have to choose from and we need to decide what to do?
2006-09-21 07:04:14 · 5 answers · asked by mommyem 4 in Business & Finance ➔ Renting & Real Estate
I would choose the land. They are not making land anymore. If you can afford land, buy it. Build the house you want instead of trying to make do with something.
2006-09-21 09:14:03 · answer #1 · answered by Sharingan 6 · 0⤊ 0⤋
I would Buy the 10 acre piece of land for $150,000 that's 20 minutes from town, subdivide half of it then build a house to live in on the other half with the profits you made, Sounds like the wisest investment.
2006-09-21 14:07:12 · answer #2 · answered by noneofyourbizwax 3 · 2⤊ 0⤋
Go with a 4 bedroom home for $120,000. It's livable and will have good resale value. The other options are way too speculative. If the rental market is real good in your area, then perhaps the duplex would work, but you definitely don't want the hassle of building anything.
2006-09-21 15:46:25 · answer #3 · answered by David 3 · 1⤊ 0⤋
Another option is to wait for a few more months and save yourself 10% off the asking price or more. Usually it takes years for a housing market correction to resolve. There is no hurry.
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.
Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).
Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.
Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.
Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!
Here is an article on lowballing the asking price when you put in your bid.
http://biz.yahoo.com/brn/060909/19463.html
Good luck!
2006-09-22 06:16:35 · answer #4 · answered by Price is what you pay for value. 3 · 0⤊ 1⤋
I think I would like the 10 acres. If your lucky, you will have been able to pay off your initial investment and come out mortgage free!
Sounds like you have some awesome choices,, good luck!
2006-09-21 14:13:56 · answer #5 · answered by chunkydunk 3 · 0⤊ 0⤋