Tiny house as a first home solution for my son?

[tradosaurus]

Hahaha... we just moved 3 hours away from our families, its my in laws that will be missed... *grin* The move was due in part because neither set of family being willing to negotiate selling us ground to build on... but I get along with my wife's family better than my own.

How many families you got?

 

[Sigarms]

Wow. Good point.
Maybe best to rent them a plot of land so just in case. Personally I would never have want to live within 3 hours of my in-laws.

Ironically enough, I posted a thread here on building something for my mother in law on our property. I've been blessed that although my wife and in-laws never met my own mother, my MIL and mom would be two peas in a pod.

We live in a rural NC county, and if I wanted to build (for my MIL) a dwelling to live in separate from our house, at the end of the day, we would need to subdivide the land with an access road (AKA easement). Overall, a PITA and we all agreed it wasn't worth our time.

Both my mom and dad was born piss poor coming from their immigrants parents who came here in the early 1900's, who didn't have a pot to piss in and worked for "coal mining towns". My dad made a good life for himself (not college but plus 20 years in the service added civilian work), worked hard, but didn't leave me any land. I was blessed enough that he did leave me a couple of bucks when he passed, and I'm thankful for that. One thing my father tried to instill in me is to do better than your parents money wise, but don't be a prick doing it.

My wife and I bought our place and land with our own money, and I expect the same from my son.

I would despise to have 300 acres with 6 kids trying to figure out what to leave to who. I'm sorry, but if everyone's family is somewhat similar to my own large extended family, you will have people in your family who have no clue what to do with money and continually make bad financial decisions.

My one 18 year old is great with money. That's not to say his kids or grandkids could be stupid and live in squalor.

 

[Sigarms]

Hahaha... we just moved 3 hours away from our families, its my in laws that will be missed... *grin* The move was due in part because neither set of family being willing to negotiate selling us ground to build on... but I get along with my wife's family better than my own.

Got to ask, was it your parents who refused to sell you land?

Let's say the land appraised for 7k an acre, if your own parents refused to sell it to you for 60% to 70% value, I can't help but think that's a dick move.

I can't see giving away land to family, but selling at a very reasonable price to a family member (particularly to a son or daughter) at a reduced rate seems fine. My opinion only, and we all know what opinions are like LOL

The reason why I ask your parents is I have a couple of cousins who have bogus masters degrees who are smart book wise, but don't have a ounce of common sense nor can keep track of any of their money just like some cousins who aren't as "smart". I could see some cousins being a dick, but not my parents.

 

[2manyrocks]

Sometimes it's smarter to test the waters with a relatively small cash gift to see what happens to it instead of making some permanent conveyance of real estate that can't be undone and that could set in motion a number of unintended and unwanted future consequences.

Money is replaceable. Once you deed real estate, good luck getting it back unless you put a right of reversion in the deed that automatically puts title back in your ownership.

(Local school board was a bit unhappy that there was such a provision in one of their deeds that said it reverted back to the family if they ever stopped using the property as a school. They closed the school, and now the family owns a 1950s elementary school building which they don't care about, but it kept the thing from going into the hands of third parties they didn't want close to their farm.)

But I keep thinking that whatever the financial situation has been for the past two years that led to where we are today, the real estate market may look very different in 6-12 months presenting other options to come.

 

[dieselcrawler]

Got to ask, was it your parents who refused to sell you land?

Let's say the land appraised for 7k an acre, if your own parents refused to sell it to you for 60% to 70% value, I can't help but think that's a dick move.

I can't see giving away land to family, but selling at a very reasonable price to a family member (particularly to a son or daughter) at a reduced rate seems fine. My opinion only, and we all know what opinions are like LOL

The reason why I ask your parents is I have a couple of cousins who have bogus masters degrees who are smart book wise, but don't have a ounce of common sense nor can keep track of any of their money just like some cousins who aren't as "smart". I could see some cousins being a dick, but not my parents.

Couple different instances... cousins wouldn't sell me my late uncle's property after I had lived there for 8 years, telling them I wanted to buy it when I was in a position to make an offer. Time came, ready to make an offer, was told 'not for sale, no matter the price.'

Father-in-law wont sign over land to my wife that he inherited from his parents, grandpa told my wife since she was little that a certin parcel was to be hers. Nobody would take gramps to lawyer to adjust will before he passed.

My parents are too worried about what my sister wants, we offered to buy them both out, sister and parents land as a batch deal, they 'didn't want to make the tenant move' that lives in sisters cabin. Offered mom lifetime rights, and a chance to have grandkids nextdoor, but she turned that down to keep the sisters friend as a neighbor.

We bought 54 acres 3 hours away with cash. Nice house, room for kids, horses, found a good job, no family BS.

 

[JethroB]

I believe there may be an out in Georgia’s conservation use program that allows for carving out small parcels to close family members for homesites. I would recommend checking with your county’s tax assessors office. Very expensive to break that conservation use covenant here. (Back taxes x 2 I believe.) ouch.

My dad once gave my brother a corner lot on the farm to build his first home on. They quickly outgrew it, so ’daddy may I have another?’ Ok on House #2.
I’m the farm trustee now and they wanted to downsize recently, 30 years later. Grrr, don’t even ask.

 

[rbstern]

I’m cheating and did not read the entire thread. I believe there may be an out in Georgia’s conservation use program that allows for carving out small parcels to close family members for homesites. I would recommend checking with your county’s tax assessors office.

My dad once gave my brother a corner lot on the farm to build his first home on. They quickly outgrew it, so ’daddy may I have another?’ Ok on House #2.
I’m the farm trustee now and they wanted to downsize recently, 30 years later. Grrr, don’t even ask.

Appreciate the suggestion. I've read the regulations. There are some exceptions (cell tower sub-lease, agritourism, some non-profit events, medical disability, farm weddings...yes, farm weddings, among other things). Changing the boundaries of the property by subdividing and gifting/selling is not an exception. That's okay. They won't be ready to build a house for a couple of years, at least. Our declaration to change the boundaries based on a new survey is about 14 months away.

 

[Sigarms]

no family BS.

I've found the bigger the family, the more the BS LOL (aunts, uncles cousins, bigger BS when it comes to money).

That said, per the OP, since he has only one son, should be easy given the circumstances. However, after reading through the entire thread, 3 things...

1 - Fiancee should be included in the talks up front IMO. Honestly, given the circumstances, I'd still let them find something on their own and let them try to make a go of it themselves. They want to get married and settle down, anything the parents offer should not be in the equation at all. By offering something before they get married, it could skew the decision making process of the two people wanting to get married.

2 - OP has about 100 people per square mile in his county. When I was looking at building for my MIL on my property, any contractor I talked to talked about subdividing the land and a easement to that structure road wise. We have about 120 per people per square mile. That said, perhaps getting a trailer is a different story, I don't know.

3 - (The biggest IMO), lets say you build a house or a trailer off the grid and no one knows about it as no permits were pulled. We go back to everything being honky dory and then things change. If the kids have any financial stake in the building or land, and if by the grace of God things don't work out long term, than little piece of heaven can turn into H E double toothpicks pretty quick IMO.

 

[2manyrocks]

At least one rotten apple in every barrel.

 

[JasperFrank]

Always work from the idea of that which creates value. If it can't create value, then go to a zero sum plan to break even. This means temporary structures in your case.

 

[buckeyefarmer]

Interesting discussion. I’m exploring building a a small cabin on land I’m buying. Realtor told me today, they frown upon you building a garage, and try to hook septic to it without a house. They also don’t want you living in camper.
I looked at small shed houses. I figure I’d rather build a small house, designed to be built onto.
So im designing a 2 BR, 1bath, small kitchen and living room cabin. To be used as weekend getaway. When I retire, if we decide to move there, will build on a larger family room and master bedroom with 2nd bath.

Got a quote of $50k for a 30x 40 pole barn. I’d rather put the money towards a cabin shell.

 

[CloverKnollFarms]

Is it less expensive if you cannot eventually sell it?

 

[Alan W.]

We built a detached garage for my son, only child, and his new bride to live in.
He worked his way through college and paid it all himself. The majority of the cost of the garage he funded. They worked constantly on getting it ready by their wedding. I remember him telling me that when they build a house I will have a garage. We placed it where my wife and I had our mobile home until we built the house. There was electric, septic, and water there already.
His wife recently graduated from college and started working. I think they are waiting now to see how the economy goes before building a home on some land I inherited close by.

 

[Sigarms]

I’m exploring building a a small cabin on land I’m buying.

I've got to ask, did you finally buy something in SW Virginia?

 

[tradosaurus]

So glad my 8 brothers and sisters all live far apart. My parents have been dead and gone for over 20 years. With only 2 kids left in the house the other 7 kids don't want to live in the area.
No family nearby within 3 hrs. Only MIL left and she's on her last leg.
Life is good!

 

[WoodChuckDad]

Interesting discussion. I’m exploring building a a small cabin on land I’m buying. Realtor told me today, they frown upon you building a garage, and try to hook septic to it without a house. They also don’t want you living in camper.
I looked at small shed houses. I figure I’d rather build a small house, designed to be built onto.
So im designing a 2 BR, 1bath, small kitchen and living room cabin. To be used as weekend getaway. When I retire, if we decide to move there, will build on a larger family room and master bedroom with 2nd bath.

Got a quote of $50k for a 30x 40 pole barn. I’d rather put the money towards a cabin shell.

Where did you get that quote? That doesn’t sound too bad.

 

[buckeyefarmer]

I've got to ask, did you finally buy something in SW Virginia?

About to, have contract on 7 acres just outside Roanoke.

 

[buckeyefarmer]

Where did you get that quote? That doesn’t sound too bad.

Pioneer pole buildings of VA. They started in PA. I had a quote from them years ago before I built my pole barn myself. If I hadn’t of built myself, I would have used them then. They have expanded to more states.

 

[2manyrocks]

Mortgage News Daily reported the 30 year rate was 6.87% yesterday morning. It rose to 7.08% by the end of the day. Not so very long ago, there were people saying that we wouldn't see 7% or that we wouldn't see 7% until year end. Seeing the decline in home sales already, the realtors and mortgage lenders are already switching their tune to: "7% isn't a bad rate." "6-7% is a normal mortgage rate historically speaking."

The problem is still that home prices are still so very elevated compared to historical norms very far above actual wage growth. People who bought homes before the 2020-2022 price run up started and refi'd at 2-3% interest aren't going to sell when the same home would cost them 2x to rebuy today and their interest rate would be 7%.

Talk about unintended consequences.

Then there are the zoning and building codes that restrict or forbid affordable housing options like tiny homes.

No wonder first time homebuyers are being squeezed.

 

[NoTrespassing]

Mortgage News Daily reported the 30 year rate was 6.87% yesterday morning. It rose to 7.08% by the end of the day. Not so very long ago, there were people saying that we wouldn't see 7% or that we wouldn't see 7% until year end. Seeing the decline in home sales already, the realtors and mortgage lenders are already switching their tune to: "7% isn't a bad rate." "6-7% is a normal mortgage rate historically speaking."

The problem is still that home prices are still so very elevated compared to historical norms very far above actual wage growth. People who bought homes before the 2020-2022 price run up started and refi'd at 2-3% interest aren't going to sell when the same home would cost them 2x to rebuy today and their interest rate would be 7%.

Talk about unintended consequences.

Then there are the zoning and building codes that restrict or forbid affordable housing options like tiny homes.

No wonder first time homebuyers are being squeezed.

I think my first and only mortgage was 10.5%.