Settling for 'good enough'

[newbury]

Anyone got experiences on settling on 'good enough' vs. getting your 'dream object'??

I'm about to start clearing land on Dad's 140 acre place to put up a new home; about a $300K venture.

Is that 300K all at once or spent over the entire construction time? Are you and your Dad putting in any sweat equity?

Just saw that 10min down the road from him, a brick 3 bedroom home on 6 acres for $99K. Saw that it needs a new roof and a lot of renovations on the inside. However, let's say you put another $60K into this home- you're done. Guess it depends on the renovations needed??<snip?

Been there, done that, need to print the T-shirt.

You buy 6 acres and a house that should be demolished (at least you will think so when you find all the wiring is not to code),

SWMBO and I are retired. In 2009 we started looking for a house and land near the MIL, for MIL support in her later years (she's 90).

SWMBO WOULD NOT build on our land, we had about 300 acres in 4 parcels with many good house sites, it would "take too long".

We ended up buying what I would call a "Mississippi half ####" house in 2011. On the surface and according to inspectors everything was OK.

I have learned new plumbing techniques (apparently gas lines are good, valves are bad), how to extend wiring because it BARELY reached the box.

In the kitchen they had cut a cabinet in half, including the door. They had wired the big swimming pool like it was an afterthought.

I never lack for a project.

Now don't get me wrong - conservatively we got one heck of a bargain. We were able to buy 70+ acres that surround it, I've got 5,500 sq foot of workshops w/ electricity, about seven 220 V welding outlets, a 15x40 apartment w/ kitchen and bath PLUS a 3 bedroom house w/ pool and carport for far less than anything in the area was asking for a house and a few acres.

But I never lack for a project. Need to redo a bathroom, repaint the basement, replace plumbing etc.

IF we had built on our own land a contractor would have done it, it would have been done a year ago and cost at least $100K more.

When I was 12 to 15 yrs old my Dad and Grandfather built a house on 30 acres and after the 2 years of building the rest was yard maintenance etc.

So you REALLY need to look at how much repair is needed, who will do it, and the cost both in $$ and your time.

And unless you know buildings get a GOOD house inspector, the guy that "inspected" our house probably wasn't smart enough to come in out of the rain.

 

[tcreeley]

Go with less, you'll have money to spare. The 140 acres is nice- use it down the road as an investment after you are settled in this place. Build your dream house then, but be practical and go with less now.

 

[erda]

So, not meaning to come off wrong, but if you build on your Dad's land, how would the title for your house read?

 

[Stimw]

The new house is a minimum of 3 months of building and more than likely 8-12 months away.
How good is your marriage? Ask any couples you might know how tough was the new build on their marriage?
Ad states house can be lived in while being repaired. A real plus.
Barring some MAJOR issue the 6 acre house sounds like a great investment if you can handle a lot of the upgrades and repairs yourself.
With some clever real estate maneuvers I have been out of debt since 1998 on my current home/property/lifestyle.
You have no idea how good that feels!

 

[USAFpj]

Erda, your absolutely correct in questioning that. To answer, he has (4) different parcels that are all connected. His current home is on one parcel, and he may 'quitclaim' a different one, that we would put our house on.

 

[Deere Dude]

Anyone got experiences on settling on 'good enough' vs. getting your 'dream object'??

I'm about to start clearing land on Dad's 140 acre place to put up a new home; about a $300K venture. Just saw that 10min down the road from him, a brick 3 bedroom home on 6 acres for $99K. Saw that it needs a new roof and a lot of renovations on the inside. However, let's say you put another $60K into this home- you're done. Guess it depends on the renovations needed??

Just imagining paying off a mortgage in 3 years vs. 30 has me second guessing what exactly constitutes a 'dream house' now. But I would sure hate to settle for something that I'll regret, know what I mean? With Dad's property, I'm walking off the front porch to hunting and trout fishing, or I'm gonna be driving 10min to get there, but with a good bit of $$$ left over for all of life's other expenses. Gonna have to keep on praying for wisdom...

Here's a pic of Dad's back yard that, like a lot of little things, I would not have with the cheaper home location.

View attachment 401728

How much land would be deeded to you on your dads property? I wouldn't build on anyone's property unless the land was in my name.
A new house is great to live in because you shouldn't have any problems for 20 years whereas fixing one up is a pain.

 

[USAFpj]

Deere Dude, I'm the only child, so eventually the 140ac 'should' eventually be my responsibility. The parcel I would be building on would be about 40ac.

It's neat to think about being there for Dad at anytime, but I also know that 'tall fences make great neighbors'...

 

[tman1020]

I'm a licensed real estate broker and I can't tell you how many times I've heard someone say there forever house. Fact of the matter is most people the large majority of people anyway move approximately every seven years. I appreciate where you're coming from on the 40 acres and it sounds wonderful. Another thing everyone keeps referring to the other house as old if I read it correctly it was built in the 80s to me that's not that old. Personally I would like both. Assuming the existing house is not a total tear down or money pit. Why not consider moving in doing basic repairs get it paid off and then start on your dream home. I'm assuming schools will be the same things that you said they are so close for your children. That would put you in a great equity situation and that would buy you time to determine exactly what you would like or if you would like to be on your father's property. Hope this helps

 

[milkman636]

Almost nine years ago my wife and I were making the same decision. We wanted to build on a ten acre parcel located about 45 minutes from my job. Building cost at the time would've been about 225k for what we wanted. We ended up picking up a deal on a same size home on 3 acres, about 20 minutes from my job, that needed work. We put 20% down and used cash for the improvements that we've made. It needed some leveling, plumbing, new roof, new windows, drywall work, insulation, flooring, 3 chimneys torn down, grading, etc... But it was quite liveable, and we've been in it for 8 years picking things off one at at time. Today it is in good shape (except for some exterior beautification that still needs to be done) and we have a small mortgage at 3% interest. In ten years that will be gone. Even with 8 kids, I'll be debt free at 53.

We still own a vacant parcel that we would love to build on, but our space needs have increased and costs have risen to where it will cost closer to 300 to put what we want on it. At today's interest rates that translates to over 500k if you carry the note for 30 years. So here we sit. The upside has been that I wasn't nearly as affected when gas soared into the $4 range, and my wife was able to quit her job and has stayed home with the kids for the last 8 years. If we had built, we would've under-built for our needs today, and it would've cost me more in the long run. Sure I have to drive a little farther for recreation, but economically it has worked out.

So my advice is think long and hard about what your future needs might be. And also take a look at some of the online loan amortization calculators so you weigh the total interest you'll be paying long term for your decisions.

 

[Fi-Q]

I had to make a similar decision 5 years ago... There was a crazy real estate bubble around here. After looking at a few house we decided to build our own. I already own most of the land......

We kind of plan for a year.... Then tought I was ready and well budget.... i was not..... Then I was thinking or seeing myself as a super heros doing all the work myself at nights and week end...... I still think I could have done it all by myself, but add 3 kids to the equation within the last 6 years and my wife needed me a lot Inside the house...... And i had a crazy job working on the road away from home....

Anyway, we broke ground 5 years ago. I sub contracted the shell..... And after that I made a few "as we are there" decision that hit the bduget, like a 600ft underground electrical line, radiant hydronic floor in basement slab, spray foam the entire basement, ect..... So it drove me off budget and I got in trouble with the bank..... So I ended up finishing a basic apartement in the basement thinking we would live in it a few month while finishing the house.....

Well, a lot of things happened in our lifes during these past 5 years..... We are stil living in the basement with 3 kids....

So got the shell done..... 2nd year got the siding done ( bought soem pre stained pine siding..... Wich turn into a money pit....) put the end result is nice, except for the south wall that the stain already start peeiling.....

3rd year, made some improvement in the basement, finish all the aluminum soffit and facia, plus 1 covered porch and a back patio, buils a small 12x16 garage..... Had the stair case done and stairs to 1st and 2nd floor

4th year, work so much that I haven't done a whole lot......

5th year finish the front covered proch. Did a lot of landscaping, planted a lot of trees, big garden for the wife..... And we are at a point where the kids a getting older and we are running out of sleeping area in the basement..... So I started finishing the 2nd floor, so far all the plumbing, ventillation and wiring is complete gor the 2nd floor. Plaster and dry wall was completed 1 months ago and the whole 2nd floor is now primed.....

so honnestly, we are getting at a better speed now that the youngest one turn 2..... In 2 years from now I think the whole house will be finished..... Including the price we paid for the land it is going to be a close the 350-400k$ venture...... But I should be able to have the house finished in 2 years with a mortgage under 215k$, wich was approx our original budget.

Would I do this again..... I don't know..... It was hard on me, hard on my wife and hard on the familly sometime..... But we are getting there..... And I still see this as a mansion.... When I am fed up with my basement apartment i go out and feed the trout in the stock pound, 50ft from the house..... Or I take a walk on my 100 acres back yard..... Or go to the front floor and sit where my dining room is going to be and look at the river delta, 600 ft from the front of the house..... Or I go to the 2nd floor and look at the sunset on the sea from one of the kid future bedroom......

Yep, sometime I think it was not the best decision, but then a plumber contracot come here to work with me and tells me that if ever he win the lotery, he would offer me over 1 million for the place......

So I am almost broke ( still have a decent job doh,) and the extra 175k$ Non budget that property will have cost is most likely the wood lot, the new truck, the new 4x4 tractor, the trip down south every winter...... That will never happen..... But I still think that once it will be finished, this property will still be on the best thing that happened in my life after my wife and kids.....

So follow your dream.... But think the road to your best dream may be a long stretch of nightmsre before your finally get where you want to....... Was my case anyway....