this post was submitted on 20 Jul 2023
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Home Improvement

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I’ve recently come into a situation where my neighbor is willing to sell me a .17acre lot that runs behind my house. It spams about 3 properties on the south border, one on the north and one on the west. I talked to the town and they would let me absorb this land into my current property. I want to build a two car garage that exits into my back yard. I’m also looking for some storage space and a workbench area. The driveway would connect to the east and run up to the garage. I’d be getting the lot for $16k and it requires some tree work, grading and a bit of junk removal. The quote for the survey is $3k for both properties. I have no idea what legal fees are involved. I can purchase the property with cash but the rest of the work will need to be financed somehow. I’m looking for any advice before I start this process. Some questions I have: -Are metal garages worthwhile? -Anyone do anything similar/advice? -Any loan options? Saw heloc is 7% now -Am I stupid for jumping into this?

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[–] Num10ck 6 points 1 year ago (1 children)

if you can relatively afford it and the extra space would add a lot to your life then go for it. if its a hardship to pay for it and/or the extra space is just extra then don't. loans are likely hard to come by for undeveloped land in normal years and able to be almost impossible soon.

[–] dag06001 3 points 1 year ago (1 children)

Luckily I have the cash for the land. It’s the loans for everything else that is worrying me.

[–] Num10ck 3 points 1 year ago (1 children)

maybe buy the land cash for now, and wait on the improvements while saving up and planning

[–] dag06001 2 points 1 year ago (1 children)

Yeah that’s the plan for now. I’ll need to take down a few giant pines back there and grade. All that can be done this year probably. I wish heloc rates were still low, locked in at 3% for the home.

[–] Num10ck 3 points 1 year ago (1 children)

the problem with HELOC is your house is collateral.. if you cant make the payments you lose your house.

maybe figure out how to build the structures using the pines. maybe figure out how to make money with the space.

[–] dag06001 2 points 1 year ago (1 children)

It’s not a large lot, .17 acres. Any suggestions on how to make money with it? My wife and I both have steady incomes but I get what you are saying. We probably have 60% of the total project cost wrapped up in some investments that we could liquidate if we had to. Those investments probably net more than the heloc rate right now

[–] Num10ck 2 points 1 year ago (1 children)

depends on where you are and whats lacking. maybe it can be a home-based business site, or an accessory dwelling unit, or a mini-warehouse for ecommerce, or a recording studio, or a wasabi farm, or breeding domesticated foxes. is this an expense or an investment?

[–] dag06001 2 points 1 year ago

I’m thinking it’s: -$16k to aquire -closing/legal costs -$3k for land surveys -town permits -concrete pad -driveway -tree work - $8k -grading/removal of debris -garage build -electrical

I haven’t received any quotes for some of these tasks but I thinking total coast after purchase will be $60-$75k but I don’t have much to base those numbers on.