advice on buying land before class

[thenicholsfam]

I could use some advice.
My dh is deployed to Iraq & wants me to buy a home this year to take advantage of the 8k tax credit & so we may keep our $1200 housing allowance that the gov't keeps by living on base.
He comes home for 2 week vacation. Decent houses on land start at 40k-100k in our area a heck of a deal & we could easily pay it off in the next 2-7yrs.

My question is should we buy a tiny house or manufactured home on land. Or sit on our hands until we take the class next Jan/Feb. We may make a wiser decision, but will see 20k go down the drain by not buying. (we have 4 children, so a shed on land won't work for long)

just to be clear we get 1,500 in base pay & 1200 in housing pay.

please feel free to give all your long winded advice!

[StressMan79]

means "designated hitter" to me. Just the same, I understand that the H stands for husband.

buying property is always a big decision. I don't know where you live, but $8000 off of 40k is a big discount. You couldn't touch a shack on 500 SF in Seattle, so This is a bit out of my experience.

You will have to decide where you want to live, what is important to you, how much you can afford, etc. Then look for a deal on your required attributes.

I don't know what qualifies for the 8k tax credit. If you could find 10-40 acres in your budget, located where you need it to be, and can get a mobile put on it (can get a septic). That is what I would do. The class doesn't teach much about real estate. they have their hands full with building principles! They do recommend "finding and buying your place in the country" for info.


Buying your property before you take the class may not be the smartest thing, but It is not the dumbest either. Many people did just that, and it does sound like you have reason to as well.

-Peter

[edkemper]

Some members I believe have built their home for less than that $8000. I'd say cash in and get about 40 in a place you'd like to settle down. Hopefully an area full of trees of the appropriate size. You and the family will be ahead of the game.

By the way, thank you and DH for your service.

[Yuhjn]

The LHBA recommends you take the class before buying land, but it is a soft recommendation.

I will say this, the cost of buying and deploying a mobile home can get out of control depending on how you do it. If you can find an old one that will hold together while you drag it to your property, that's an option.

Another option is get an old RV and live in that. But with lots of kids that's more difficult.

Personally I would hedge my bets a little bit. Look for land now, and if you come upon a really great deal, go for it. But dont feel pressured by the extra money you'll save by buying now.

Dont, for example, settle for something just because you dont want to lose the cash.

Timing is very important when you're trying to do this on the cheap. And time is the one thing you have lots of, presumably. If not, then you better have lots of money.

Many people say that taking the class is a life-changing experience. In my estimation, the location you choose to build your home on may very well change after a life changing experience.

[exsailor]

I retired from the Navy some years ago, and there might be a few things that need to be considered before buying a house or land. First of all thank you and DH for serving now in these troubled times. Each generation of service has their own world troubles to face while keeping us safe, and the world has become a dangerous place.
Now on to what I was referring to above in my opening statement. First of all very few services allow you to stay in one area. The Air Force term is appropriately called homesteading. Most branches of the service require changing duty stations. So buying a house for a short period of time, four to six years, and then having to sell in this economy might be a losing proposition. Land if you can't stay on it becomes an alligator, eating up resources in the form of yearly taxes and insurance. I have been looking into land in my area, and discovered something. Location is key. How close can you get to work, services, and shopping and still find 5 or 6 acres to build on? I like my space and hunting. I was going for more land and found close to work was not available for less than a 45 minute drive. So I guess the real question you need to ask is how long will you be in the area you are now?
Now don?t give up on your dream, I would not dare suggest that. Think about your wants verse your needs and can you take advantage of this cash situation effectively or will it create a problem down the line. Good luck in your future and may DH come home safe!

[spiralsands]

'When' you buy land kinda depends on 'why' you buy land. If you're going to buy just to take advantage of a tax credit, you don't want to buy anything you can't live in now and be comfortable. That would be financially irresponsible. But if you want to buy something for the long term, a place for the kids to grow up or for you to live in for the rest of your lives, you really need to focus on where that land is and what amentities it has. That will take time you probably don't have right now. A real estate agent told me recently that the housing market will not be springing back too soon so maybe the Fed will extend that tax credit to next year too. Losing that credit would be better than getting stuck with a house or an acreage you really don't like. That would be way more expensive a burden.

I bought my land before I went to the course. But I already have a house and am planning to move there when I'm ready. I know that is the place I want to be and I spent two years looking for it.

Frances