AboutKindred Beisinger penname K D Elizabeth Beisinger Expertise I can answer questions pertaining to budgeting, savings, debt reduction, and total freedom from debt. I can assist in prioritizing expenses and obligations. I am willing to share and offer guidance in realistic money management, modest investments, and financial freedom. I am not an investment counselor, broker or accountant, I am a missionary that does not do fund raisers or ask for donations.
Experience I live comfortably and have been debt free since I was 40.
Question QUESTION: I am interested in buying a piece of property with a waterfront, but it is in a low-income neighborhood.(which I think is the reason it hasn't sold.) My husband likes to fish and loves the open air full of nature. He had his heart set on buying out in the country, but I am a scaredy cat and am a city gal. This land is in the city but outside the hustle and bustle of the city. We would like to build a small house and are stressed out because we would like some advice on buying this property. Everybody tells us not to buy because the economy is so bad. We think this is the perfect opportunity for us.(By the way, we have our present house paid off.) We have $15,000 to give down and the loan would be for $11,000. We plan to pay it off in a very short time. Do you think we should invest or pass? P.S. Our income is $70,000 a year with a car payment of $354 and truck payment of $511. We have no credit card debt. Our only expenses are these two and the regular monthly budget ones.
ANSWER: Dear Esther,
I think land is a good investment, but land in the city limits may be a bit of a risk, only because of codes, eminent domain, and easement rights. You say this is in a low income neighborhood which is what federal funding is aiming at right now. Many cities and I have no idea if this is one or not, are getting into all sorts of "funded initiatives" that really begin to invade a person's private property rights. Again, I think you are wise to consider purchasing land, and without knowing the size, I can't say whether the price is good or not. Obviously you can afford it, but there are some good deals on land out in the country. We own land in three different areas around the same town. Only one of our places is really remote, the other two are on paved roads and although the houses are not close, you can see a few nearby. Land is a good investment and I think right now, considering the value of the dollar on the world market, I don't think land is losing value like houses are. You can write back and tell me the size of the property and if there are any improvements like a well or septic tank, if you want my opinion on the price.
The only negative perspective I would have in regard to buying the land you are considering, is the location of the city limit sign. I would go outside.
I wish you well and encourage you in your endeavor.
Kind Regards,
Kindred
www.eingedi.us
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QUESTION: Since it is inside city limits, there is public sewer system. The size of the land is 50x150 plus 21x143 because there is an easement of 25 ft. from the water to the land. These are two lots side by side for $25,000. The taxes on the lots are $364 each and it is not cleared which means we would have to go and clean it regularly and for the first time it would have to be with a bulldozer to clear the land of brush,etc. I have seen property like the one you're talking about out in the country, but the prices are not that affordable and the ones that are(the ones with a house already) are too old or in dire need of repairs which would be costly. This is the reason that we have been considering this land--to build as we like to fit our needs. I don't know if it is worth it or just do all of the renovations on our 1982 U S home. Our present house is in very good shape because we have maintained it all these years and there is no rotted wood or problems with it. This house is on the north side of town and close to the mall, shopping centers, convenience stores, schools, hospital, etc. And they are just working on a CVS pharmacy down the road. It takes us two minutes to get to the petstore, mall, Walmart,Kmart,etc. Everything is so close by. The drawback is that we can't walk to any of these places because the traffic is nonstop all the time and there are no sidewalks leading to these places.It is so busy and everybody is in a hurry to get wherever they're going, if you know what I mean. So this is the reason for purchasing the land. And probably the most important reason is that I hate the popcorn ceiling and the small master bathroom. I love everything else, including the kitchen, walk-in closet, coat closet, linen closet, large pantry, big master bedroom, larger than average bedrooms, laundry area, front porch, back porch, fruit trees(peach, lime,lemon, tangerine, grapefruit, and orange), oversized tool shed, big carport, nice yard with many flowers and plants, picket fence(I had it custom-built last December) and our neighborhood is so peaceful and so far, so safe you can actually walk the dogs at night without worrying that a dog might attack you or whatever. There is a street light in every four houses on each block of the neighborhood. Remember I love the city, but my husband loves the country.
Answer Dear Esther,
I have given serious consideration to your question. I really think this double lot in town is a compromise that although with sincere intentions on both your parts, isn't really satisfying to either. It sounds like you love your home and your husband has been relatively content to live where you do, but longs for the country. I do believe land is a good investment, but what you are describing isn't a great deal of land, and with the real estate market depressed, your lovely home would not bring the top dollar it would have a couple of years ago, so that is something to consider, as well. Not to throw a monkey wrench into the equation, but what if the two of you did purchase a small parcel of land outside of the city and built something small, like a cabin, where your husband could enjoy it and you could just plan to be there on occasions, sort of a week-end getaway type think. I'm not suggesting that he move to the country, but rather have that or even an RV or something along those lines. It just sounds like a great expense to purchase the lots and the improvements to be made, without really getting what your husband wants and you ultimately giving up the home you like.
Just my thoughts. I think the two of you sound like you have made some wise investments and will do the right thing for the two of you.
Kindred
