House decisions

[Beendare]

My take;

I would advise a young guy to "Build assets"...its not about how much money you make....the more you make...the more the taxman takes. Funnel as much of your income into assets as you can- below is an example.

I would think in terms of which one ...with some improvements and sweat equity......will be a more desirable setup for you....and appreciate more in the long run. Can you build a rental unit or cottage type thing on either one for rental income?

The tract house will always be based on the houses around you...so even if you trick it out the price will always be based on Comps.

The other properties if improved will not only serve you well....but also if done in the right manner can be very desirable for resale.

The other option you may not have considered, keep the house you have and convert to a rental....then buy another home that maybe isn't your ideal with the thought you will live in that for a year or more. Then you can convert that to another rental and move into your perfect home in there future.

This ^ locks in your LOW long term homeowner mortgage rate vs buying rental property with a higher rate, so in essence you are using the beneficially low interest rate the big boys use to your benefit.

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[silverbullet555]

My take;

I would advise a young guy to "Build assets"...its not about how much money you make....the more you make...the more the taxman takes. Funnel as much of your income into assets as you can- below is an example.

I would think in terms of which one ...with some improvements and sweat equity......will be a more desirable setup for you....and appreciate more in the long run. Can you build a rental unit or cottage type thing on either one for rental income?

The tract house will always be based on the houses around you...so even if you trick it out the price will always be based on Comps.

The other properties if improved will not only serve you well....but also if done in the right manner can be very desirable for resale.

The other option you may not have considered, keep the house you have and convert to a rental....then buy another home that maybe isn't your ideal with the thought you will live in that for a year or more. Then you can convert that to another rental and move into your perfect home in there future.

This ^ locks in your LOW long term homeowner mortgage rate vs buying rental property with a higher rate, so in essence you are using the beneficially low interest rate the big boys use to your benefit.

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Definitely considering living in the house that be subdivided later. Peel off an acre and build a house more of what I want. Expansion is part of the consideration. One of many.

Subdivision house prices are truly driven by the values around you and I don't really want to be in the most expensive house in a neighborhood. I'd rather be in the least expensive.

I've been a landlord before and I don't know if I want to be again. We didn't have a great experience, but there were many factors that caused that.

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[silverbullet555]

Looks like c it is. Mostly because the wife said so.

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[Antarctica]

No question. Option 3.

I would never buy in an HOA. My lifestyle just wouldn't work in it. There's enough laws already, why subscribe to more?

I'm in a similar place now - 3 acres (one under water), fairly large shop/barn. House isn't large (a little over 2000).

The best advice I would give is to wait for option 4. More land.

 

[tdhanses]

Option 3 sounds the best to me, it’s similar to exactly what I bought 12 years ago.

 

[tdhanses]

It was interesting to see the taxes being lower on the larger property. Both option 2 and 3 are in the same county. It looks to mostly be a function of appraised value which may not stick as the county evaluates values every year. I will check with the insurance company.

Cost of ownership is always a consideration, but not the driving factor.

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Option 3 has cattle so it is probably being taxed as AG, option 2 will get the residential tax since no livestock is allowed.