jellybeanz
Registered User
- Messages
- 8
Hi all,
I'd be grateful for any advice anyone can give. For the past three years, we've been working on becoming debt-free and saving so that we can build our dream home. We're first time buyers/builders.
Our current financial situation isn't wonderful, I earn 43k gross, partner earns 11k gross, but he has just made a career change and gotten a new job at entry level. We're hopeful he'll move up the ranks pretty quickly. We have just gotten to zero debt, and we have just under 2k savings with 2 kids, and final one on the way.
The area that we currently live in rarely has land for sale opportunities. There is lots of bog land in the area, and the land that is build-able on tends to be massively over priced. Until yesterday, when we saw what appears to be a fantastic opportunity - land for sale at 50k, subject to planning.
Here's my question:
Should we get a loan of 50k, which will take us roughly 5.5 years to pay back and buy the land, or should we wait, save up some money and hope another opportunity comes along?
We could afford to pay back the loan in our current financial situation, but we couldn't comfortably afford to apply for a mortgage of anything above 700 during this 5.5 years if my partners wages don't increase. We're currently paying 675 on rent. So if we bought the land we probably wouldn't be able to start the build until the loan is paid off, or my partners wages increase.
On the other hand, if we wait 5.5 years, we could only apply for 25 year mortgage given our age, which would increase our monthly mortgage payments.
We would probably need a mortgage of 190 - 200k to build the home of our dreams to turn key standard.
I have so many questions!
- If we got the loan, would we still have a hope of getting a mortgage in a couple of years, while still paying off the loan?
- Is it too risky to hope that my partners earnings increase, or is it a bigger risk to let the land slip through our fingers?
- Does land count as a deposit when applying for a mortgage?
We obviously need to do our homework on the land, have a pre-planning meeting, hire an architect etc. - it might not even be feasible to build on it. But I don't know whether to take the leap or not!
I'm really interested in hearing peoples thoughts. If I haven't given enough info, please ask me.
We've been dreaming of building for over 10 years, we want to get this right without putting ourselves in unmanageable debt.
Thanks!
I'd be grateful for any advice anyone can give. For the past three years, we've been working on becoming debt-free and saving so that we can build our dream home. We're first time buyers/builders.
Our current financial situation isn't wonderful, I earn 43k gross, partner earns 11k gross, but he has just made a career change and gotten a new job at entry level. We're hopeful he'll move up the ranks pretty quickly. We have just gotten to zero debt, and we have just under 2k savings with 2 kids, and final one on the way.
The area that we currently live in rarely has land for sale opportunities. There is lots of bog land in the area, and the land that is build-able on tends to be massively over priced. Until yesterday, when we saw what appears to be a fantastic opportunity - land for sale at 50k, subject to planning.
Here's my question:
Should we get a loan of 50k, which will take us roughly 5.5 years to pay back and buy the land, or should we wait, save up some money and hope another opportunity comes along?
We could afford to pay back the loan in our current financial situation, but we couldn't comfortably afford to apply for a mortgage of anything above 700 during this 5.5 years if my partners wages don't increase. We're currently paying 675 on rent. So if we bought the land we probably wouldn't be able to start the build until the loan is paid off, or my partners wages increase.
On the other hand, if we wait 5.5 years, we could only apply for 25 year mortgage given our age, which would increase our monthly mortgage payments.
We would probably need a mortgage of 190 - 200k to build the home of our dreams to turn key standard.
I have so many questions!
- If we got the loan, would we still have a hope of getting a mortgage in a couple of years, while still paying off the loan?
- Is it too risky to hope that my partners earnings increase, or is it a bigger risk to let the land slip through our fingers?
- Does land count as a deposit when applying for a mortgage?
We obviously need to do our homework on the land, have a pre-planning meeting, hire an architect etc. - it might not even be feasible to build on it. But I don't know whether to take the leap or not!
I'm really interested in hearing peoples thoughts. If I haven't given enough info, please ask me.
We've been dreaming of building for over 10 years, we want to get this right without putting ourselves in unmanageable debt.
Thanks!