Buy a land!

[hooby]

Hey all,
I’m planning to buy a land for constructing home, and I have some savings, but that is not sufficient enough. So planning to take a personal loan for this. I searched more about how to take and how to apply for it and find that *** they help with taking up a personal loan. I don’t know more about them, so need suggestions if anyone has taken loan from here. Please advice.

[Frank S]

Way too little information for anyone to be able to offer much in the way of advice.
First off if I were you I would not spend my savings towards the purchase of the land, rather I would try to work out a way to offer it up as a secondary security by placing it in an escrow or trust account OR better yet speak with a financial adviser prior to doing anything.
IMHO a savings should only be used to increase its value never spent.
Even if you were able to purchase the land by using your savings plus a personal loan where would the funding come from to construct the home? What is your total debt load percentage wise to your monthly/ yearly income.
Owning a piece of land is great but if you must labor for years before you would be in a financial position to construct the home where would the enjoyment in that be?
If the piece of land is of sufficient size that once paid for or enough equity in it is established that a small part of it could be deeded separately as a home site Possibly a loan could be taken out for the home using the rest of the land as collateral

[Toolmaker51]

For me, there are 2 kinds of savings. Like Buffet and his stock's one should be held. All overtime from work, a percentage of income, and most unexpected windfall goes here. Then apportion living expenses through a strict budget. A second account funds projects, along with whatever equity can be amassed.

[Frank S]

Tm51 you are correct. The investment in stocks might be a little risky at times especially for a wage earner.
One should never commit more to that sort of investment than one can live without if a down turn happens though.
Short and or long term high risk ventures are only to be thought of for persons who can afford to loose.
The other types of savings need to be held in a more liquid form in case of a dire emergency and even then those can be wiped out when least expected.

[Paul Jones]

My advice on buying land and constructing a new home is don't do it unless you are financially well off. We did this once and it was fun but financially not worth it as compared to buying a custom home built by someone else. When buying 10 year or younger previously owned homes you get the interior finishing parts (appliances, window coverings, custom mill-work, cabinets, toilets, etc.) at a highly discounted price than what you would pay when buying it new. The same goes for exterior improvements like pools, spas, patios and patio coverings, landscaping, driveways, walkways, etc. that can go for 10 cents to 50 cents on the dollar compared to buying these in new and not even counting the labor costs.

[C-Bag]

Not to mention the HUGE rigmarole of getting approvals by the various state and county depts that are made to drain your pockets. It's way more cost effective to fix up a existing place than build from scratch for just the reasons Paul mentions. What most don't understand is the land is usually the easy/cheap part. And if you can't afford that you could lose momentum. I saw this happen first hand with a piece of land that was really affordable next to a good friend who wanted me to buy it. It went through 2 different people over 10yrs until someone could afford to push it through all the way. I'm glad I didn't go for it because it would have killed me.

[Frank S]

Years ago I bought a parcel of property that was zoned heavy industrial it had 2 small 6000 sq ft buildings on it + a ruins of over 10,000 sq ft I was able to lease out 1 building for enough to cover the monthly pymts. and taxes. So I thought I was in good shape however a hidden clause which wasn't discovered by my atty. until a year later when the city posted a foreclosure notice due to non compliance. Just about cost me everything the non compliance was the requirement of an existing 8ft high privacy fence that was on 2 sides which was made of wood the city claimed that due to industrial zoning the fence had to be steel and had to extend around the complete perimeter. This was going to entail the removal of 30 trees which were over 100 years old plus 10s of thousands 0f $$$$ worth of landscaping and fence replacement. after erecting steel fence everywhere except for the side with the trees and 2 years of courts there still was no satisfying. Boneheaded bureaucrats even with the effected neighbor's documented agreement to leave the trees. The only solution was for me to sell out and move. The funny thing is nearly 25 years later the trees are still there but the property is vacant and overgrown/
So in any land purchase I recommend an extensive search and records check for any possible upcoming problems

[suther51]

Very late to this thread, but also consider the tax assessment can change drastically, I bought 27+acres, 10 yrs latter the town tripled the assessment with no prior increase in the preceding 10yrs. Sooooo, I will not do anything, anything that they could use to Increase my taxes. If they had done their jobs over the 10yr period they could have eventualy recived the tax on a residence, but not now! Only perminent structures are taxed in my state, hello gipsy wagon! Maby shop on wheels?
Eric