Two spenders and buying a house

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yellowgirl
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Two spenders and buying a house

Post by yellowgirl » Fri Jan 29, 2016 11:31 am

We looked at a property about 15 miles from our workplace. This house is 2800 square feet 5 beds 3 baths on 18 acres. It has a large pond about 5 acres in size, the current owner doesn’t know how deep. It is not in a flood zone area. We noticed a few ducks in it. The pond fenced off with a huge iron gate. The owner pays $60 a year to maintain the septic tank. This house has solar panels. They showed their electricity bills. They pay less than $40 a month for electricity, no gas service. This house was built in 2000. It is not really country living because Starbucks, Target, Walmart and McDonald are only 5 miles away. This house sits between 4 medical facilities within 6-7 miles. Property tax is $5200 a year and asking price 399K. Our budget is 250K but this property looks very lovely with ton of flowers and trees. We can put down 250K and borrow 150K. We never owned a house with a septic tank so a little worry there. What else do we need to look out for?

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goodenyou
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Re: Two spenders and buying a house

Post by goodenyou » Fri Jan 29, 2016 12:08 pm

Cost of upkeep. There is a giant sucking sound with more land and trees to maintain.
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janiebegood
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Re: Two spenders and buying a house

Post by janiebegood » Fri Jan 29, 2016 12:11 pm

Does the water supply come from a well or city sewer? If it's a well, it would need to be inspected, and the water tested.

When was the septic system put in (assume when the house was built in 2000, but still not bad to ask) and when was it last serviced? Have they mapped alternative spots if the septic field maxes out?

Do you have time to maintain 18 acres (including a 5 acre pond) AND commute 15 miles to work every day? Will you spend your weekends on maintenance and yardwork? Those flowers won't grow themselves...

If you buy a house that's that much over your stated budget, will you have the cash flow to take care of the million things an 18 acre property will require?

Depending on locale, what snow removal plans will you have to put in place?

And finally... do you need an 18 acre rural property that's WAY above your stated budget?

jjface
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Re: Two spenders and buying a house

Post by jjface » Fri Jan 29, 2016 12:47 pm

first house + 18 acres + pond + over budget + both work + large house = crazy

You have $250k in cash - go buy yourselves a nice house without a mortgage and without all that maintenance.

Just my opinion.

edge
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Re: Two spenders and buying a house

Post by edge » Fri Jan 29, 2016 12:50 pm

Why is your budget the amount of cash you have? The things to watch out for when buying a home are a very large number and I am sure google would be more helpful than the forum.

ponyboy
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Re: Two spenders and buying a house

Post by ponyboy » Fri Jan 29, 2016 12:56 pm

Within the next year ill be purchasing a house that sits on 30 acres...28 of which are completely wooded. No neighbors, complete privacy. I wouldnt have it any other way.

To the OP...sounds like most commenting here live on plots of land that are described in square feet because the space is so small. Im guessing a lot of your property would not have to be maintained because of woods. How much grass would have to be mowed? How close are your neighbors? If you value privacy like myself...spending the extra money will go a long way...just my opinion. But...this is coming from someone who lives in the surrounding DC area, stacked on top of each other like cockroaches. Humans arent designed to live like that, its a relatively new concept no matter how you spin it...sorry folks.

yellowgirl
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Re: Two spenders and buying a house

Post by yellowgirl » Fri Jan 29, 2016 1:03 pm

janiebegood wrote:Does the water supply come from a well or city sewer? If it's a well, it would need to be inspected, and the water tested.

When was the septic system put in (assume when the house was built in 2000, but still not bad to ask) and when was it last serviced? Have they mapped alternative spots if the septic field maxes out?

Do you have time to maintain 18 acres (including a 5 acre pond) AND commute 15 miles to work every day? Will you spend your weekends on maintenance and yardwork? Those flowers won't grow themselves...

If you buy a house that's that much over your stated budget, will you have the cash flow to take care of the million things an 18 acre property will require?

Depending on locale, what snow removal plans will you have to put in place?

And finally... do you need an 18 acre rural property that's WAY above your stated budget?

It is city water. We don't need an 18 acre but its nice to have. The property surrounded with trees, its very peaceful. We think its nice to live there.

yellowgirl
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Re: Two spenders and buying a house

Post by yellowgirl » Fri Jan 29, 2016 1:04 pm

edge wrote:Why is your budget the amount of cash you have? The things to watch out for when buying a home are a very large number and I am sure google would be more helpful than the forum.

We wanted to max out retirement.

yellowgirl
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Re: Two spenders and buying a house

Post by yellowgirl » Fri Jan 29, 2016 1:06 pm

ponyboy wrote:Within the next year ill be purchasing a house that sits on 30 acres...28 of which are completely wooded. No neighbors, complete privacy. I wouldnt have it any other way.

To the OP...sounds like most commenting here live on plots of land that are described in square feet because the space is so small. Im guessing a lot of your property would not have to be maintained because of woods. How much grass would have to be mowed? How close are your neighbors? If you value privacy like myself...spending the extra money will go a long way...just my opinion. But...this is coming from someone who lives in the surrounding DC area, stacked on top of each other like cockroaches. Humans arent designed to live like that, its a relatively new concept no matter how you spin it...sorry folks.

You are correct. Its stunning but over our budget.

JGoneRiding
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Re: Two spenders and buying a house

Post by JGoneRiding » Fri Jan 29, 2016 1:11 pm

Sounds like Heaven to me but I am a really bad BH. Not going to confess my sins but...I bought the house you are describing, except I have horses and intend to grow hay and a handy husband. If you don't have at least a little of those type of things. 18 acres is a lot of land and that is a very big house. We did it because a) we NEVER want to move again b) we want to have kids and this place is amazing perfect for them c) not a lot of the house type we got available and no more will be built--3 to 5 acres yes tons of those but no new houses on 10+ acres are at all likely to go in in our entire county.

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Watty
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Re: Two spenders and buying a house

Post by Watty » Fri Jan 29, 2016 1:24 pm

yellowgirl wrote:What else do we need to look out for?
Mosquitoes may be a problem in the summer time with the pond.

With the water there may be restrictions on the use of fertilizers or other chemicals near it.

Be sure to get an insurance quote. With the pond the insurance may be very high like with a swimming pool since someone could drown in it and it will likely attract kids. Some insurance companies may not insure it. If you will have kids of your own then consider how safe they will be around the pond and get them swimming lessons early.

Be sure that a new septic system could be installed today since there may be restrictions on building one near the pond that went into effect after the house was built.

Be sure to budget a lot for furnishing a very large first house and getting any equipment, like a riding lawnmower for doing maintenance. Beware of the low end riding lawnmowers they sell at the big box hardware store they are not as durable as higher end models.

Take a hard look at the driveway since even if it is gravel it will require maintenance. If you live in a snow zone then you may have to pay to have the snow cleared.

If the property is fenced then budget time and money for fence maintenance.

Be sure to get the property surveyed since any old fences might not be on the right property line.

With the development in the area there might be the potential for selling the land for a subdivision or selling off parts of it in the future so keep that in mind if you add any outbuildings like a barn.

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Re: Two spenders and buying a house

Post by tacster » Fri Jan 29, 2016 1:36 pm

It sounds like a great piece of property. If it's mostly trees I wouldn't expect property maintenance to be much of an issue. Septic built in 2000 should still be plenty good, of course you should have it inspected before purchase. Only $60/year for septic maintenance is nothing, some localities require annual septic pumping/inspection at several hundred $ per year. A $150k mortgage isn't really much these days. Be sure to factor in tax and insurance when deciding if the payments are within your budget.
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unclescrooge
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Re: Two spenders and buying a house

Post by unclescrooge » Fri Jan 29, 2016 1:51 pm

yellowgirl wrote:We looked at a property about 15 miles from our workplace. This house is 2800 square feet 5 beds 3 baths on 18 acres. It has a large pond about 5 acres in size, the current owner doesn’t know how deep. It is not in a flood zone area. We noticed a few ducks in it. The pond fenced off with a huge iron gate. The owner pays $60 a year to maintain the septic tank. This house has solar panels. They showed their electricity bills. They pay less than $40 a month for electricity, no gas service. This house was built in 2000. It is not really country living because Starbucks, Target, Walmart and McDonald are only 5 miles away. This house sits between 4 medical facilities within 6-7 miles. Property tax is $5200 a year and asking price 399K. Our budget is 250K but this property looks very lovely with ton of flowers and trees. We can put down 250K and borrow 150K. We never owned a house with a septic tank so a little worry there. What else do we need to look out for?
Sound amazing!
What state is this in?

mmcmonster
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Re: Two spenders and buying a house

Post by mmcmonster » Fri Jan 29, 2016 1:58 pm

Ask for the last three septic bills, and see how close together they are.

I've had a couple friends tell me their horror stories about septic tanks that need to be emptied out just about every month. One of them lived in what used to be a rural area but because of a new development a mile away the water table rose so that the tank was never able to empty. The other had a sprinkler pipe crack right on top of the septic tank and would pour water into the tank every time the sprinklers were on.

Also, I would ask if the electricity to the house is stable. How often are there brown-outs or black outs.

goodlifer
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Re: Two spenders and buying a house

Post by goodlifer » Fri Jan 29, 2016 2:10 pm

My first thought when reading the op was, "How could you fit 5 bedrooms and 3 baths in just 2800 sq ft???". I don't know why people think this is a large house. I guess I am spoiled. As others have already said, most people that are not farming the land just let trees and shrubs grow. Just don't let any grow near the septic system. You could find out if you could parcel out some of the acres, but then you would have people living close to you. Stagnant ponds do produce a ton of bugs, and fertilizer run off can choke the life out of it. You can add a fountain, more frogs, or throw some bait sticks (aka dunk sticks) to control mosquitoes.

My concerns would be the septic, the solar panels, and the school system if you have or plan on having kids. How old are the solar panels? When was the last time the septic was drained? How bad is traffic during your commute? How stubborn is the seller on price? He/she might come down a lot or not at all. Do the property taxes reflect the true value of the home? When we bought our cottage, the property taxes almost doubled. The seller had a senior's discount, plus the price appreciated more than what the county had estimated. It was a shock.

I say, if you can handle the payments and the upkeep, go for it! I would love to live in a house you describe.

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danwhite77
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Re: Two spenders and buying a house

Post by danwhite77 » Fri Jan 29, 2016 2:14 pm

goodlifer wrote:My first thought when reading the op was, "How could you fit 5 bedrooms and 3 baths in just 2800 sq ft???"
I had to chuckle at this. We have 2000 sq ft, five beds, and 2.5 bath. There is absolutely no wasted space on the second floor where all of the bedrooms are located.
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Kosmo
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Re: Two spenders and buying a house

Post by Kosmo » Fri Jan 29, 2016 2:30 pm

yellowgirl wrote: This house is 2800 square feet 5 beds 3 baths on 18 acres..... Property tax is $5200 a year...
Where? I pay more property tax than that on a half acre.
yellowgirl wrote: The owner pays $60 a year to maintain the septic tank.
What septic maintenance is done yearly? It should be pumped periodically depending on use. But it should not require regular maintenance actions.
yellowgirl wrote:This house has solar panels. They showed their electricity bills. They pay less than $40 a month for electricity, no gas service.
Is it electric heat? I wouldn't let electricity costs guide your decision. Who owns the solar panels (you, the electric company, some middle man)? Or more appropriate, who's responsible for their repair (or other roof/house repairs) if they get damaged?

Do you have the knowledge and time and/or ability to pay for yard maintenance for whatever part needs to be maintained? Do you need 2800 sf? Do you have the ability to maintain that?

I'm not trying to talk to you out of it. Sounds like a great opportunity. My biggest concern would be ongoing costs for maintenance and repairs on such a large property.

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Re: Two spenders and buying a house

Post by 3504PIR » Fri Jan 29, 2016 3:03 pm

You've described the property we own except take away the pond and add a 8 stall barn. We love it and can't imagine why we ever lived in a subdivision, which in hindsight was, for us, a poor way to live/exist.

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Re: Two spenders and buying a house

Post by TomatoTomahto » Fri Jan 29, 2016 3:28 pm

JGoneRiding wrote:...I bought the house you are describing, except I have horses and intend to grow hay and a handy husband.
Please don't tell my wife that it's possible to grow a handy husband or she'll kick me to the curb and grow a handy husband the next time. :twisted:

OP, sounds great. Do your due diligence; I hope it all checks out.
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Re: Two spenders and buying a house

Post by psystal » Fri Jan 29, 2016 3:35 pm

I would jump at the chance to live on a rural property like this within 5 miles of a Starbucks. $399k sounds like a steal. With 18 acres, you might even be able to lot some of it off in the future.

With 250k in cash, you are probably fine, but I think the two key concerns are your current cash flow and your ability to keep up with the property (even if most of it is wooded). Pay attention to the earlier post about the solar panels - you need to have a good grasp of what those will cost to maintain and eventually replace.

With mortgage rates as low as they are, I'd keep as much cash as you can to invest. It sounds like this is a property you'll keep for a lifetime, in which case you should jump at the chance to lock in a mortgage for 3.625% or less.

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Re: Two spenders and buying a house

Post by Meg77 » Fri Jan 29, 2016 3:41 pm

yellowgirl wrote:We looked at a property about 15 miles from our workplace. This house is 2800 square feet 5 beds 3 baths on 18 acres. It has a large pond about 5 acres in size, the current owner doesn’t know how deep. It is not in a flood zone area. We noticed a few ducks in it. The pond fenced off with a huge iron gate. The owner pays $60 a year to maintain the septic tank. This house has solar panels. They showed their electricity bills. They pay less than $40 a month for electricity, no gas service. This house was built in 2000. It is not really country living because Starbucks, Target, Walmart and McDonald are only 5 miles away. This house sits between 4 medical facilities within 6-7 miles. Property tax is $5200 a year and asking price 399K. Our budget is 250K but this property looks very lovely with ton of flowers and trees. We can put down 250K and borrow 150K. We never owned a house with a septic tank so a little worry there. What else do we need to look out for?
The house sounds great if that's what you want, but I would get a smaller mortgage and make sure you hang on to at least $50K in cash for a year not only for regular emergency reserves but also in case any surprise major home improvements pop up (new roof, new septic tank, new HVAC, new hot water heater...all those things will need to be purchased sooner or later!).

FYI the house where I grew up had a septic tank and I only remember it having issues and needing to be pumped once in the last 20 years. Lots of other things though can go haywire in any home. I'm looking at a $40K roof repair situation now on the 14 year old home I've owned for barely 2 years. We just had to have the windows re-sealed to the tune of $3K. New floors for the entry and guest room ran us $5K after we finally tired of the peeling stained concrete that couldn't be cleaned. Homes are expensive - just keep more cash on hand than you think you need for awhile and you should be OK though.
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edge
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Re: Two spenders and buying a house

Post by edge » Fri Jan 29, 2016 4:29 pm

yellowgirl wrote:
edge wrote:Why is your budget the amount of cash you have? The things to watch out for when buying a home are a very large number and I am sure google would be more helpful than the forum.

We wanted to max out retirement.
Seems a little off that a 150k mortgage would preclude maxing out retirement accounts. You may want to take a step back and look at overall maintenance of the property you are looking at.

CoAndy
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Re: Two spenders and buying a house

Post by CoAndy » Fri Jan 29, 2016 4:31 pm

Is the pond full of trout? If so, go for it.

Hikes_With_Dogs
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Re: Two spenders and buying a house

Post by Hikes_With_Dogs » Fri Jan 29, 2016 4:34 pm

If it's over your budget, don't buy it.

However, given the other information posted, I think you should re-evaluate your budget.

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Re: Two spenders and buying a house

Post by Jack FFR1846 » Fri Jan 29, 2016 4:42 pm

Hmmm....sounds like my house except subtract that 5 acre pond, put it across the street and multiply it by 100 or so.....and only 3 bedrooms in the 2800 sq feet but a stand alone garage that's 864 square feet.

What does my 13 acres cost to maintain? What type of land is it? Woods (zero to maintain and if there's hardwood trees, you can get firewood for free heat). Open fields? Again, pretty much zero and if the conditions are right, you can sell the hay to farmers and they'll harvest it. We're also on a septic system with town water. The one thing to consider is whether the house has cable TV already. Ours wasn't built with that in mind and anything but Fios requires a trench be dug, several cable amplifiers and several thousand dollars out of my pocket to have them do this. Fios just slices the ground and puts the fiber a few inches underground. If you're in a winter area, how much does it cost to remove snow? I own both a plow truck and a bucket loader on a small Kubota tractor to take care of it.....and a snowmobile in case nothing is getting around.

Sounds really nice to me. You couldn't touch a house of that description near me for less than twice what you're quoting. Maybe 3 times.
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scubadiver
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Re: Two spenders and buying a house

Post by scubadiver » Fri Jan 29, 2016 9:30 pm

yellowgirl wrote:We looked at a property about 15 miles from our workplace. This house is 2800 square feet 5 beds 3 baths on 18 acres. It has a large pond about 5 acres in size, the current owner doesn’t know how deep. It is not in a flood zone area. We noticed a few ducks in it. The pond fenced off with a huge iron gate. The owner pays $60 a year to maintain the septic tank. This house has solar panels. They showed their electricity bills. They pay less than $40 a month for electricity, no gas service. This house was built in 2000. It is not really country living because Starbucks, Target, Walmart and McDonald are only 5 miles away. This house sits between 4 medical facilities within 6-7 miles. Property tax is $5200 a year and asking price 399K. Our budget is 250K but this property looks very lovely with ton of flowers and trees. We can put down 250K and borrow 150K. We never owned a house with a septic tank so a little worry there. What else do we need to look out for?
Our home of nearly six years is on well and septic. It's no big deal. Many many people live on well and septic. You'll want to bump your e-fund a bit just in case something does go wrong, but I would write that off as the opportunity cost of living on 18 acres and would not hesitate for a moment to buy the property because of it.

The real questions here relate to how much you can afford. Are you planning to have children soon? Could you afford the mortgage and other living expenses on just one salary, etc.

Also, how much of the 18 acres is maintained? 1-2 acres, ok, no big deal. If you're mowing 5 acres with tons of landscaping though, it can be a lot of work. Just something to keep in mind. If you're the type that likes being out doors, than that may be ok anyway.

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Re: Two spenders and buying a house

Post by Elysium » Fri Jan 29, 2016 9:45 pm

Septic no big deal. There will be maintenance down the line, but should be fine if you can budget for it. Well, again is no big deal. But, 18 acres is a bit too much, too many crazies out there, that would be my concern, how do you keep the crazies out of your land. What state is this in? Make sure you have firearms, plenty of them, and good training.

Edit: just so no one misunderstand my last statement, home security is a real concern in a property that large, especially since you are cut off from others. Not just from human intruders, but could be animals, depending on the state you live and what else is close by. Many factors to consider. I would think from this perspective anyone living alone on a large property like that need to be sufficiently prepared to protect themselves from all elements.

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Re: Two spenders and buying a house

Post by celia » Sat Jan 30, 2016 1:45 am

yellowgirl wrote:We looked at a property about 15 miles from our workplace.
Do you both work at the same place? Will your commuting distance/expenses go up? (hmmm, 30 miles round trip times 5 times a week times 50? weeks a year = 7,500 miles just for work.

Is the pond completely on your property or is it shared with neighbors? Does the water "flow" so mosquitoes won't breed? What would you do with the pond? Do you have small kids or plan to? The pond would be considered an "attractive nuisance" for insurance purposes, when the neighborhood kids try to use it without your permission and there is an unfortunate "event" there. And a fence doesn't make it look very scenic.

Why do you need 5 bedrooms? Will they all be occupied? Don't forget that that space may end up being heated and cooled, even when it is not being used.

Is the property in a fire district (service by a fire department)? How long would it take for emergency personnel to get to the property? If someone yelled for help, can any neighbors hear it?

How far are the schools (and how good are they)? How would kids get to school? This should be considered even if you don't have kids as it will be harder to sell if schools are difficult to get to/not in walking/biking distance.

(just throwing out some ideas for you to consider . . .)
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Re: Two spenders and buying a house

Post by greenfire » Sat Jan 30, 2016 6:57 am

I can't advise you on whether you can afford this house, but I can advise you that nothing compares to the peace and privacy of country living. We have 117 acres, a pond, solar panels and much more. I'm a passionate gardener, and after living here for 37 years, and planting flowering trees, shrubs and perennials - I live in paradise. I have a large vegetable garden, an orchard, and grow much of our own food. We've had a horse (and too many other pets to count), and had neighbors pasture cows and sheep here. We have about 15 acres of open fields, which in the past we've gotten neighbors to cut for hay, but now my husband maintains as expansive lawns (he loves his john deere tractor) which make meandering around delightful. In the past I have had trees cut and sold for lumber. We heat with wood, (but also have propane.) When I first came here, there was a gravity fed water supply, it was replaced with a well (and the old water supply was hooked up to a turbine that generates power.) The well has required no maintenance, and the septic, original to the house built in 1965 (remodeled and expanded in 2007) had zero maintenance for the first 25 years, and nowadays we pump it every 3 years. My husband and I are both nature lovers, thrill at the occasional sighting of bear and coyote and love to feed the birds, including wild turkeys who come every day for corn. The solar panels have been in since 2006 and require little maintenance and are expected to last 20+ years. The pond has attracted huge hordes of frogs, and mosquitoes are rare. One of the best things about living here is the smell of the air, the sounds of the birds, and the fact that the water supply is pristine. What more could you ask for?

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Re: Two spenders and buying a house

Post by joebh » Sat Jan 30, 2016 1:32 pm

How did you come up with a budget of $250k?

If you used something other than just picking random numbers out of the air, how can you even consider purchasing a $399k home?
What is being squeezed to justify the addition $149k?

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Re: Two spenders and buying a house

Post by edge » Sat Jan 30, 2016 4:53 pm

I am confused, are you trying to say that is a long commute? Seems pretty short especially if most of it is light traffic country roads.
celia wrote:
yellowgirl wrote:We looked at a property about 15 miles from our workplace.
Do you both work at the same place? Will your commuting distance/expenses go up? (hmmm, 30 miles round trip times 5 times a week times 50? weeks a year = 7,500 miles just for work.

Is the pond completely on your property or is it shared with neighbors? Does the water "flow" so mosquitoes won't breed? What would you do with the pond? Do you have small kids or plan to? The pond would be considered an "attractive nuisance" for insurance purposes, when the neighborhood kids try to use it without your permission and there is an unfortunate "event" there. And a fence doesn't make it look very scenic.

Why do you need 5 bedrooms? Will they all be occupied? Don't forget that that space may end up being heated and cooled, even when it is not being used.

Is the property in a fire district (service by a fire department)? How long would it take for emergency personnel to get to the property? If someone yelled for help, can any neighbors hear it?

How far are the schools (and how good are they)? How would kids get to school? This should be considered even if you don't have kids as it will be harder to sell if schools are difficult to get to/not in walking/biking distance.

(just throwing out some ideas for you to consider . . .)

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Re: Two spenders and buying a house

Post by Twins Fan » Sat Jan 30, 2016 5:22 pm

joebh wrote:How did you come up with a budget of $250k?

If you used something other than just picking random numbers out of the air, how can you even consider purchasing a $399k home?
What is being squeezed to justify the addition $149k?
Sounds like they have $250k cash, wanted to use that only, and have no mortgage. I don't know that "budget" was the correct word choice, as they can likely afford to take on a mortgage of some sort.

OP, it comes down to a lifestyle choice. I'm guessing you guys can afford to buy it, but do you want the mortgage payment...

Sounds like a lovely place to me! I would love the privacy and space. I would be real tempted to take on a mortgage, if it were a dream home kind of deal.

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Re: Two spenders and buying a house

Post by yellowgirl » Sat Jan 30, 2016 7:58 pm

We made an offer on Friday. I am going to go through all the comments later.

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Slick8503
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Re: Two spenders and buying a house

Post by Slick8503 » Sat Jan 30, 2016 7:59 pm

I just want to point out that 18 acres is an asset that has value rather than a liability as some here are trying to advise. There will I'm sure be marketable timber at some point and being close to Dr's etc it sounds like potential for development in the future. I'm not trying to advise what to do but definitely keep future value in mind. Also as others have stated, there is a lot of enjoyment that can be had from owning more than a couple acres. To some the additional upkeep and taxes are worth it for this reason alone.

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Re: Two spenders and buying a house

Post by Grt2bOutdoors » Sat Jan 30, 2016 8:49 pm

celia wrote:
yellowgirl wrote:
Is the property in a fire district (service by a fire department)? How long would it take for emergency personnel to get to the property? If someone yelled for help, can any neighbors hear it?

(just throwing out some ideas for you to consider . . .)
Ding, ding, ding. +1 We have a winner! I'm sure those who live in the country loved being surrounded by trees, until the countryside went up in flames! How is the weather pattern in your neck of the "woods"? I would not want to be surrounded by trees when the dry season is very dry and very hot - nature can be cruel when the sun starts a blaze. Not only do you have potential for property damage, there is always potential for loss of life.
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Re: Two spenders and buying a house

Post by Grt2bOutdoors » Sat Jan 30, 2016 8:53 pm

Slick8503 wrote:I just want to point out that 18 acres is an asset that has value rather than a liability as some here are trying to advise. There will I'm sure be marketable timber at some point and being close to Dr's etc it sounds like potential for development in the future. I'm not trying to advise what to do but definitely keep future value in mind. Also as others have stated, there is a lot of enjoyment that can be had from owning more than a couple acres. To some the additional upkeep and taxes are worth it for this reason alone.
If you're buying a property for the potential of marketable timber, it's much easier to purchase a timber REIT and let the professionals handle that aspect of investing for you. I'd rather purchase the home for the reason of living there, but there is something to be said for being in nature and there is something to be said for keeping maintenance and upkeep expenses low as well.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Slick8503
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Re: Two spenders and buying a house

Post by Slick8503 » Sat Jan 30, 2016 9:00 pm

Owning 18 acres with trees is miles away from buying a timber REIT. I'm simply pointing out that owning 18 acres does not have to be the money pit that many here make it out to be. The extra expenses can be offset by some income that the property can produce, or will produce in the future. One isn't simply throwing the money away with no hope of a return like they would dining out or going on a trip.

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Re: Two spenders and buying a house

Post by Grt2bOutdoors » Sat Jan 30, 2016 9:11 pm

Slick8503 wrote:Owning 18 acres with trees is miles away from buying a timber REIT. I'm simply pointing out that owning 18 acres does not have to be the money pit that many here make it out to be. The extra expenses can be offset by some income that the property can produce, or will produce in the future. One isn't simply throwing the money away with no hope of a return like they would dining out or going on a trip.
Partially agree, however there are some returns that can not be measured. Dining or going out on a trip usually provide other kinds of returns. :)
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Slick8503
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Re: Two spenders and buying a house

Post by Slick8503 » Sat Jan 30, 2016 9:17 pm

Those are the type of returns I am suggesting owning 18 acres of ground can give as well. But, unlike dining out, or going on a trip, owning property can provide some monetary return as well.

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Re: Two spenders and buying a house

Post by freebeer » Sat Jan 30, 2016 9:41 pm

ponyboy wrote:Within the next year ill be purchasing a house that sits on 30 acres...28 of which are completely wooded. No neighbors, complete privacy. I wouldnt have it any other way.

To the OP...sounds like most commenting here live on plots of land that are described in square feet because the space is so small. Im guessing a lot of your property would not have to be maintained because of woods. How much grass would have to be mowed? How close are your neighbors? If you value privacy like myself...spending the extra money will go a long way...just my opinion. But...this is coming from someone who lives in the surrounding DC area, stacked on top of each other like cockroaches. Humans arent designed to live like that, its a relatively new concept no matter how you spin it...sorry folks.
To the contrary for almost all of human existence, and for most humans today, we have almost all lived in clusters of households in villages, hamlets, etc. With each household of course an extended familiy. Farmers go out and till fields and come home at night to live... pretty much next to the other farmers. Hunter-gatherers clustered together for safety from predators (animal and human). It just wasn't practical to live way out, isolated far away from all the things needed. And of course few families could afford a horse.

The idea of one nuclear family occupying many acres - or even half-an-acre - as a general pattern of habitation (as opposed to being exceptional situations for the very wealthy and the occasional isolated farmstead) is quite recent, first a development of the English middle class aping the English upper class, mutated further here in the U.S. thanks in part to the homestead act which encouraged living out on one's claim so as to prove it out. But even that wasn't universal ( The Little House on the Prairie was empty while the Ingalls spent The Long Winter in town!). Then of course automobile-scaled suburbs came along... but it would be utterly silly to imagine that humans were "designed to live" in a manner that required something that's only been around for a century or so.

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Re: Two spenders and buying a house

Post by bayview » Sat Jan 30, 2016 10:39 pm

yellowgirl wrote:We made an offer on Friday. I am going to go through all the comments later.
Very exciting, and I hope that you wind up where you want to be!

Frankly, I am jelly. :D
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yellowgirl
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Re: Two spenders and buying a house

Post by yellowgirl » Sun Jan 31, 2016 9:15 am

This property is in Texas. It will be close to $1200 a month PITI. There is also a barn about half a mile away from the house in good condition. We found out they pay $250 a month for landscaping around the house, no wonder it's nice. There is a possibility that Six Flags Over Texas coming to the area. People say that's not a good sign for the area.

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Re: Two spenders and buying a house

Post by cherijoh » Sun Jan 31, 2016 9:35 am

goodlifer wrote:My first thought when reading the op was, "How could you fit 5 bedrooms and 3 baths in just 2800 sq ft???". I don't know why people think this is a large house. I guess I am spoiled.
It does sound like you are spoiled. :wink:

I grew up in an 1800 sq. ft. house with 3BR/2BA. It included a family room, eat-in kitchen, formal dining room, formal living room, large pantry -- in addition to the aforementioned bedrooms and baths. So 2800 sq. feet IS a large house and ample space for 5BR/3BA!

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Re: Two spenders and buying a house

Post by joebh » Sun Jan 31, 2016 1:10 pm

yellowgirl wrote:This property is in Texas. It will be close to $1200 a month PITI. There is also a barn about half a mile away from the house in good condition. We found out they pay $250 a month for landscaping around the house, no wonder it's nice.
Does this fit into your revised budget now?
Good luck.

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