Buying a Lot | TigerDroppings.com

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Gugich22
New Orleans Saints Fan
Who Dat Nation
Member since Jan 2006
24890 posts

Buying a Lot


My wife and I have been talking about moving in 2-3 years. We really like the area we are in but would like to move into a newer part of the subdivision or somewhere close by. Is there any reason NOT to buy a lot 2-3 years in advance rather than looking to purchase a lot and contract out the building of a new home at the same time?






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ell_13
USA Fan
Alex Box
Member since Apr 2013
22916 posts

re: Buying a Lot


They don't make more land.





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Mr.Perfect
Louisiana
Member since Mar 2013
4889 posts

re: Buying a Lot


yea... buy it now





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6320 posts

re: Buying a Lot


Make sure the subdivision doesn't have covenants regarding how long you have to build after purchasing lot.





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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
21116 posts

re: Buying a Lot


quote:

Make sure the subdivision doesn't have covenants regarding how long you have to build after purchasing lot.
This and make sure the lot loan doesn't make you pay back the whole amount if you don't build in a certain time frame.






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ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3553 posts

re: Buying a Lot


quote:

Is there any reason NOT to buy a lot 2-3 years in advance rather than looking to purchase a lot and contract out the building of a new home at the same time?

The most in important answer is...

quote:

Posted by ItNeverRains

Make sure the subdivision doesn't have covenants regarding how long you have to build after purchasing lot.


Personally, I'd only buy a 'lot' to sit on if I knew for a fact that is exactly where I wanted to build my next house. Things can change drastically in 2-3 years. just ask the Copper Mill residents right now.






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Gugich22
New Orleans Saints Fan
Who Dat Nation
Member since Jan 2006
24890 posts

re: Buying a Lot


quote:

Make sure the subdivision doesn't have covenants regarding how long you have to build after purchasing lot.


Personally, I'd only buy a 'lot' to sit on if I knew for a fact that is exactly where I wanted to build my next house. Things can change drastically in 2-3 years. just ask the Copper Mill residents right now.





great....thanks for the advice. at this point, there are only two areas in which we'd like to build a home.

one of the areas is likely out of our current price range. the other one is just right.






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Martini
LSU Fan
Baton Rouge
Member since Mar 2005
28009 posts

re: Buying a Lot


Buy it. You can always shove a sing on it and sell it. Last house I built I owned the lot for four years and when I started building it was paid for. It's an investment.





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MikeBRLA
LSU Fan
Baton Rouge
Member since Jun 2005
9241 posts

re: Buying a Lot


quote:

Things can change drastically in 2-3 years. just ask the Copper Mill residents right now.


What's gong on at copper mill?






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cdl2006
LSU Fan
Metairie
Member since Nov 2007
148 posts

re: Buying a Lot


Does anyone have experience getting a loan for a lot? What type or down payment is normal? Term? Interest rate for someone who has good credit? I have never really thought about doing this, but it might be a good idea to buy a lot instead of saving a downpayment in the bank for a couple if years. Anyone have thoughts on this?





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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
21116 posts

re: Buying a Lot


quote:

What type or down payment is normal?
20%
quote:

Term?
Mine was a balloon after 24 months
quote:

Interest rate for someone who has good credit?
6%. This was with Whitney fwiw






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ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3553 posts

re: Buying a Lot


quote:

What's gong on at copper mill?



My understanding is the developer had financial trouble. The homeowners had to buy the golf course and in turn they are each paying (i believe) an extra $1,500/year to cover the golf course, debt, & improvements. They basically were faced with the option to buy the course or it could be shut down and their home values could have dropped 25% overnight.

Residents buy Copper Mill Golf Course

Level Homes and DSLD are both now building in there. The home they are building look fine from what I've seen, but DSLD's prices are starting around $250k-260k which are below what most people believed would ever be in Copper Mill. I know a few people in Copper Mill that like the place but they seem pretty nervous about where their property values are heading.






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StinkBait72
USA Fan
Member since Nov 2011
993 posts
 Online 

re: Buying a Lot


First American Bank:
10% down
Balloon after 60 month (5 year on 15 year loan)
4.25% last April






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cdl2006
LSU Fan
Metairie
Member since Nov 2007
148 posts

re: Buying a Lot


Thanks for the info. Any other carrying costs? I would assume property taxes, HOA fees, and the occasional lawn cut. Are property taxes less on just land or does that not make a difference other than assessed value of the property? Do I need to carry a liability policy on it?





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StinkBait72
USA Fan
Member since Nov 2011
993 posts
 Online 

re: Buying a Lot


quote:

I would assume property taxes, HOA fees, and the occasional lawn cut.


I paid $100 for property Taxes(I think this is based of the assessed value) on 2-acres this year and didn't have any HOA Fees.

quote:

Do I need to carry a liability policy on it?


Just give your insurance guy a call mine is covered under my house insurance policy.






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sdc74
LSU Fan
Houston
Member since Jan 2007
962 posts

re: Buying a Lot


I'm in Houston and want to buy a lot inside the loop now before the prices get way to high. I"m not ready to build yet but I'm going to sit on the lot. Maybe in a few years I can sale for a nice profit if I decide not to build.





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