A "kid" wanting to buy land.

[Nick87]

and from my friends around the country also agree) is there in no way a young person (or most people period) can actually follow through with the 1/4 rule

Sounds like a good time not to buy then, your young and Rome wasn't built in a day. Are any of those said friends gonna help you make the payment when shit hits the fan? If not then it doesn't really matter what they think. Just my .02 which is exactly what it's worth.

 

[Mudranger1]

Buy now it won't get cheaper...my theory anyways. It may stabilize it may dip but who is to say that it will be available for you to buy then. If yall think you can afford it then go for it. Only yall know your financial situation .. if everyone planned for doomsday then 99% people wouldn't own shit. Believe in yourself and go for it. Things are worth what you're willing to pay.

 

[seeth07]

Rents are so much higher right now too. 800 rents 2 years ago are not 1200

 

[seeth07]

What hasn't increased by 15 to 30 percent over those two years? Most people's salaries. Yes some but not to the extent of cost increases such as housing and dare I bring up ammo lol

 

[Steiny]

I understand your concerns but the 25-30% rule for a mortgage is time tested. You are young but remember big bills are coming with a family etc. It's nice to have some breathing room financially as the current economic times will not last forever. Hopefully as you age your income will continue to increase lessening the payment pressure. Good luck with your purchase!

Yep .... and what about that little stretch of bad luck when you have to replace the roof, and in the middle of that your car pukes. If you don't have some wiggle room or significant savings you're using the credit card and getting yourself in further trouble.

 

[Cheesehead]

To ‘the kid’…buy dirt

 

[Gellar]

I’ve never heard an old farmer who says I wish I hadn’t bought that land 20 years ago. But I have heard lots say, as in all of them I know, I had no idea how I was going to pay for it at the time but I wish I could buy more land at that price.

 

[BigHornRam]

I’ve never heard an old farmer who says I wish I hadn’t bought that land 20 years ago. But I have heard lots say, as in all of them I know, I had no idea how I was going to pay for it at the time but I wish I could buy more land at that price.

Pretty much every farmer I worked for in high school and just out of in the late 70's/ early 80's, buried themselves in debt and lost everything. We are headed for similar times IMO. 30 to 50% cash down on land at minimum. Land is at a premium right now so don't chase it if you can't afford it.

 

[Gellar]

Pretty much every farmer I worked for in high school and just out of in the late 70's/ early 80's, buried themselves in debt and lost everything. We are headed for similar times IMO. 30 to 50% cash down on land at minimum. Land is at a premium right now so don't chase it if you can't afford it.

You are correct and some farmers are setting themselves up for that again. But a lot of landowners are not farming now and have other sources of income.

 

[BigHornRam]

Bill accumulated a bunch of farm ground at top dollar and now he will be giving half away to the ex. Hard to compete with that foolishness.

Bill Gates is America's biggest owner of private farmland, and his 242,000 acres could be split in his divorce

Bill Gates owns farmland in 18 states from Washington to Florida. His divorce means he may not be the largest private-farmland owner for much longer.

www.businessinsider.com

 

[Mountain Man]

Prices are definitely high right now, but there is no telling when they might slow down.

The availability of an adjacent parcel is something that doesn’t come around often. You are very smart to be seriously considering purchasing it. The rarity of this opportunity is something to keep in mind.

I agree with some of the others that a 50% debt to income ratio on your primary residence is quite high and taking on any more debt should be done so very carefully. Because of this, I do not recommend you roll this new purchase into your existing mortgage. If you do that and fall behind on payments you could lose everything. If they are separate, you only lose the 5 acres.

Overall, I wish I would have taken some more chances with raw land in the past. Just have eyes wide open if you choose to pursue it.

 

[GKimPrice]

Another "thing" to keep in your basket of GOOD knowledge and maybe change your way of looking at things if not your way of living ....

It is not what you make or take home, it is WHAT YOU CAN KEEP - for 1/2 my life I lived on a farm and boarded horses while I worked a fulltime job at the same time. Was I sometimes inconvenienced by having to feed the horses in the morning or evenings ? Sure. Did I have to forego SOME "fun times" to repair a fence or barn door ? Sure. Was the fact that over the course of years the stable made my mortgage payment or a large part of it a benefit ? That I was able to take legal and legitimate deductions for my chosen lifestyle ? Yes, all of the above plus allowing the kids to grow up in a farm atmosphere, in their 40's they still talk about it ..... And alot of other benefits too