# Finance Now and Use or Save Up?



## Huntmo1 (Nov 30, 2011)

I currently live in NE and am 'ok' with living here; I have a good job and my kids are in a great high school.

However, we want to eventually settle down and have a nice little homestead. The problem in NE is that the land is expensive and offers little (at least to me). I grew up in MI and I miss the trees, water and wildlife that NE just doesn't offer as much of. I certainly don't want to pay $100K for 10-15 acres of nothing when could get 20-40+ acres (and even a cabin/home) for around that much in places like MO or MI (where I'm from).

So, one thing that I've been thinking about is buying some land in Northern MO, where there is more woods/water and cheaper land and have a place that is <4 hrs from my home that we can go to on weekends and slowly develop for a future homestead and do some hunting/camping on in the meantime. 

But, I was wondering what you all thought about the topic of financing land now and paying a mortgage for something that you can use/develop/enjoy now vs. waiting a few years to save up the money and pay cash? 

Financially, I know that it's smarter to wait and save up, but was just wondering if anyone else has gone through that process and what decision you made...thoughts?


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## Teej (Jan 14, 2012)

If you can manage it my advice is to buy now. We lived & worked in Indianapolis and knew we wanted to move to a more rural community after his retirement. Started looking in southern IN and bought the farm in '95 knowing hubby couldn't retire until '00. Bought the land at a little over 500 per acre and by the time we moved down here it was going for 1500/acre. That savings more than made up for the property taxes & interest.

Had enough equity in our place in Indy that we refinanced it to pay for the farm. In the remaining years until we moved I put every spare penny into the principle on that mortgage and by the time we sold there was again enough equity to pay for the house. 

We spent the time coming down on weekends to work on the barns and fencing in order for it to be ready for our horses when the time came to move.


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## mekasmom (Jan 19, 2010)

Buy now while the prices are low. But don't finance something with a huge payment. Just get bare land and start from there or land with a minimal building.


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## jwal10 (Jun 5, 2010)

Kids in high school is a good time to buy, everyone can use it. Remember you are getting older/other interests. Don't buy too much. many people say you can never have to much. I am here to tell you, you can and then not get to enjoy it as much as you could smaller. If you find the right property, have good credit, go for it. Other option is owner financed. Start small so you can enjoy those vacations, together at first then the 2 of you later. Then the retirement years. Our properties are all small, now that the kids are grown and have families we all get to enjoy them, sometimes together sometimes all to ourselves....James


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## Raymond James (Apr 15, 2013)

With interest rates and prices low I would buy now if you can just do not go too deep into debt. As long as you pay what it is really worth you cannot go wrong. If you get land fever and pay way to much you could eventually make back your money but it will take forever.


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## Steve in PA (Nov 25, 2011)

Another vote for buy now if you are financially able. Savings pay such a small return and that small return is getting eaten by inflation/taxes. If you are able, do some Net Present Value calculations with your numbers to see if it makes sense.


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## Micheal (Jan 28, 2009)

Sorry but I'm in the "ahhhh" camp. Don't know if'n you should buy now or wait, since there are costs involved with either plan. 
Can you afford to maintain 2 places?
Can you afford the cost(s) of traveling back and forth?
Is the "whole" family wanting this?
Will what you buy today be what you'll want after the kids decide their future and possibly flee the coup?
Etc., etc., etc............
Way to many unknown variables. :shrug: 
That's why I say "Ahhhh"...


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## Jenstc2003 (Apr 4, 2012)

Tough call- it may well be less expensive to buy today if you are financially able to handle the costs, as long as you can be confident that it is going to meet your needs for the long term and that you can keep it up at such a long distance. And it certainly gives you the opportunity to learn the land a bit before you build there- or even get the building started.


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## Rollochrome (Apr 9, 2012)

Finance now. Finance now. Finance now.

Save up and let inflation blast you in 18 to 24 months? No thanks...

If you have the monthly ability to handle it.....get a fixed 15 year note. If not....nothing in the world wrong with a fixed 30 year at 3.5%. 

You will be glad you did when people are paying 11% AND putting 25% down....with devalued currency..


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## GunMonkeyIntl (May 13, 2013)

Coming inflation should not be underestimated. Once they stop this "quantitative easing" BS, the perceived value of currency is going to finally catch up with its actual value. And interest rates are going to sky-rocket. 30yr fixed notes at 3.25% with 5% down, are going to become 10yr notes at 15% with 20% down.

As long as you go with a fixed rate note, your $500 mortgage will still be $500, even when $500 only buys 5 gallons of milk. 

Too, if it all comes down quickly, there are many who believe that we will be in a "hold what you got" economy. Trying to buy land the day after a financial collapsewill be one day too late.


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## SimplerTimez (Jan 20, 2008)

There are pros and cons to both. Will land go up or down? Will interest rates go up or down? How long will it take you to save enough to purchase? 

No one has a crystal ball unfortunately. Me personally, if I purchase again, it will be with cash. Then I can live in a tent if I have to  But it's just me, so your circumstances will drive your decision. Lenders are skittish right now. The economy is all over the place; good in some places, horrific in others. In the future, I'd rather only worry about paying taxes and such, than having to come up with a mortgage payment. That's predicated on the fact that I had to sell my farm due to no work in the area - poor planning on my part, and a lot of other issues.

Best wishes no matter which route you choose 

~ST


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