Buying Land vs. Buying a House

[BuckyTuba]

I'm currently looking at getting out of the rental market in the carolinas since home values are flying up (wake county is one of the top 10 counties in the nation for rising house values). i'm looking to get a house out in the boonies so i can get a lot of pasture capable land to surround the house for a possible horse grazing area. i'm also trying to stay somewhat close to work so i can keep the commute down.

 

i've found a 10 acre plot with a double wide trailer on it for $52k. the plan would to live in the trailer for a couple years until i'm able to put a down payment on building a new house on that 10 acre plot.

 

is this a better option that going out and buying a $265,000 house that is on a 6.43 acre plot? they are about the same distance from work (45 mins).

[JoeHova]

I'd say it depends on how much per square foot new houses go for in the Carolinas. I've heard it's low there, but I can't find any numbers on-line. If you plan on building the house yourself, go with the land. If you don't, do some research on contruction costs. I would call around to some developers in your area and see what they charge to build a house comparable to the $265,000 house that you are thinking of.

[TheBwaz]

Bucky,

 

I've had a fair amount of experience in both areas (building and existing) but not in the Carolinas, so take this for what it is worth.

 

The #1 thing is can you handle the construction stuff. You would have to put up with the double wide for a year or two. Then, you have to deal with 3-6 months of construction. Probably on the lower end because most homes in the south are slab, no basement.

 

If you are acting as your own general, you are going to sink a lot of time into things. If you hire a general, or buy a spec home, you will spend a little less time overseeing the project, but construction is still more cumbersome than buying pre-existing. You may not want to spend that 14 hours at work and then have to deal with checking off a punch list before you lose your right to object to a draw.

 

Buying you don't get exactly what you want, but your time and costs are a little less. If you are getting a lot that big, either way, get a survey. Its worth the money. Trust me, I do title insurance.

 

And hey, I have a dear friend who is a Real Estate agent in the Triangle area. If you are there I would be happy to recommend her.