I got a settlement of less than a 100,000 and want buy land should I pay cash or put in the bank ?

Question

and take out a loan

Answer 1

bank it and get a loan

Answer 2

Put it in the bank until you thoroughly research where the best land purchase may be. Be sure that your Realtor has ascertained that the land has a buildable lot, in other words, that a structure can be built on it. Also to be determined is the readiness of the soil for septic, unless you're in an area that provides sewer service, the capacity of the sewer (3 bed or more) and if you can dig a well, if a public water supply is not nearby.

Also your Realtor should find out for you if there are any environmental concerns in the area, such as contamination, and the future plans for development by others.

Otherwise, you could be easily waste your money on property that you're unable to use or sell after taking ownership.

Answer 3

Put it in the bank, use an interest earning account with a low cancellation fee (usually the only penalty is they wont pay interest if you take it out before a specific date). When you buy the land use financing and you can use that money as collateral if its in a CD or a negotiable instrument and have it still earn interest.

Answer 4

always take out a loan if you can

you can use the intrest on the mortgage for income tax and it always helps your credit score to take out loans

i also would put some of the $$ in CD's they make better intrest then a savings account and you can do a 5 yr one after the 5 yrs take the intrest you got on the first one and open 2 CD's for 5 yrs one with the intrest one with the first amount then in 5 yrs open another 4 with the intrest and starter money you will get well worth your money out of it

Answer 5

Did they take the taxes already? If not, I'd sure put aside for that.