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 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
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