Buy land then build house / house land package / established home

[poido123]

Looking to get into the property market mid next year.

What is the best way to go financially? My parents say it's more expensive to land then build house than buying already established house with land or a land house package.

Can anyone shed some light on their experience? I want to make a sound investment from the get go.

I have friends of the family who are architects/ builders so that should help with costs.


Thoughts?

[RidonKs]

organize a community land trust

[Yoda]

Move to Dagobah you must.

[poido123]

organize a community land trust

Community land trust? Is this an American thing? I haven't really heard anything about it

[HitandRun Reggie]

If you have family that are builders maybe. Otherwise it would be much better to buy property with a home, even a beat up one, than try to build from the ground up. Depending on what part of the country you are in, permits can get crazy expensive. I looked into building a home on one of my parent's properties, and they wanted around $100 a sq/ft to build a very basic one, and that was before all the permits and fees involved. In that area I could have bought a 5 acre lot of land with a decent home that size for the same price.

Don't buy a manufactured home, they tend to lose resale value while a regular constructed home tends to increase in value if it remains in good shape.

[DCL]

you have never even bought your first property and you're already thinking about land acquisition and property development??

if buying a house is fractions, real estate development is calculus. the load of work and experience are not even comparable.

you're not even at level 1 yet.

you should really start out with some books. asking questions on a message board will not help you at this stage. you have soooo much to learn.

[IcanzIIravor]

Looking to get into the property market mid next year.

What is the best way to go financially? My parents say it's more expensive to land then build house than buying already established house with land or a land house package.

Can anyone shed some light on their experience? I want to make a sound investment from the get go.

I have friends of the family who are architects/ builders so that should help with costs.


Thoughts?

I think it depends on how sound your finances is and the property market in your location. Do you have a good job and a nest egg saved up?

[RidonKs]

Community land trust? Is this an American thing? I haven't really heard anything about it

yeah i don't really know that much either but yeah it's an american thing. well it's been done in america to some success. look it up if you like. i'm not super familiar, but it's basically a system where people collectively own large tracts of land on which they live. when they move away, they collect equity that has accrued over the years... i think. but another idea is that by having a single entity own all the land in a large region, it keeps property values from ballooning since you're removing competition for land from the equation. it's becoming more and more popular given recent events.


here's a bunch of bullets from the wiki page.

[QUOTE]Nonprofit, tax-exempt corporation A community land trust is an independent, not-for-profit corporation that is legally chartered in the state in which it is located. Most CLTs are started from scratch, but some are grafted onto existing nonprofit corporations. Most CLTs target their activities and resources toward charitable activities like providing housing for low-income people and redeveloping blighted neighborhoods, making them eligible to receive 501(c)(3) designation from the IRS.

Dual ownership A nonprofit corporation (the CLT) acquires multiple parcels of land throughout a targeted geographic area with the intention of retaining ownership of these parcels forever. Any building already located on the land or later constructed on the land can be held by the CLT or can be sold off to an individual homeowner, a cooperative housing corporation, a nonprofit developer of rental housing, or some other nonprofit, governmental, or for-profit entity.[2]

Leased land Although CLTs intend never to resell their land, they can provide for the exclusive use of their land by the owners of any buildings located thereon. Parcels of land can be conveyed to individual homeowners (or to the owners of other types of residential or commercial structures) through long-term ground leases. This two-party contract between the landowner (the CLT) and a building

[poido123]

you have never even bought your first property and you're already thinking about land acquisition and property development??

if buying a house is fractions, real estate development is calculus. the load of work and experience are not even comparable.

you're not even at level 1 yet.

you should really start out with some books. asking questions on a message board will not help you at this stage. you have soooo much to learn.

Ummm, I'm not building the house? I'm not sure what your point is here. Is buying a house or land rocket science? I never said I'm looking into property development or claim to know it all.

I am familiar with location to value and understanding the potential gain side, I'm just getting some experiences from those here who know and can share what they know.

You could read a hundred books but it will never compare to actual experience.

[poido123]

I think it depends on how sound your finances is and the property market in your location. Do you have a good job and a nest egg saved up?

Have close to a 10% deposit now and 15% by mid next year with 1, maybe 2 grants to assist with first home.

I work for virgin airlines and very solid job security.

[poido123]

yeah i don't really know that much either but yeah it's an american thing. well it's been done in america to some success. look it up if you like. i'm not super familiar, but it's basically a system where people collectively own large tracts of land on which they live. when they move away, they collect equity that has accrued over the years... i think. but another idea is that by having a single entity own all the land in a large region, it keeps property values from ballooning since you're removing competition for land from the equation. it's becoming more and more popular given recent events.


here's a bunch of bullets from the wiki page.

Hmmm interesting. We call that housing commission or housing under (NRAS) scheme here in australia.

Obviously the land of this housing would be what Americans call community trust land.

Thanks for finding that ridonks. Here's some rep

[DCL]

Ummm, I'm not building the house? I'm not sure what your point is here. Is buying a house or land rocket science? I never said I'm looking into property development or claim to know it all.

I am familiar with location to value and understanding the potential gain side, I'm just getting some experiences from those here who know and can share what they know.

You could read a hundred books but it will never compare to actual experience.

your original post implied you were contemplating or wondering about buying land and building property. that's property development, mate. you don't even know the definition yet you want to participate in this endeavor?

i gave you solid advice, which is that you really should make a greater effort to get a deeper education in the process before you decide to dump a lot of money into something. there are like a million things that can go wrong in a developmental project that you're asking about. asking for simple restaurant recommendations is one thing for a message board, but you don't want to do it like that for a project like real estate investment. from your first post, it's pretty obvious you want to do something but don't know much about it.

and that's why i advised you to pick up some reading and absorb as much as you can. books will never replace experience, but you need at least some basic knowledge first. it's not rocket science, and your knowledge level doesn't need to be a 10 to do this, but you're like starting at level 0. reading some literature might help you carry that level to at least a 5 or maybe 6. you can't be lazy about it.

[poido123]

Sounds like you're a very literal person and I think this just went waaay over your head.


I brought up the possibilities of purchasing my first home. I did clearly say "building a house" not building "multiple houses" on the land. Property development would imply multiple houses and entering the property market would indicate that I'd be starting out with my first home...

[DCL]

Sounds like you're a very literal person and I think this just went waaay over your head.


I brought up the possibilities of purchasing my first home. I did clearly say "building a house" not building "multiple houses" on the land. Property development would imply multiple houses and entering the property market would indicate that I'd be starting out with my first home...

it doesn't matter if you build one or ten. it's the same rules. and the potential risks for errors are similar. you will be involved in a process that requires more attention from you than you understand because when those errors occur, you will be financially responsible for them. when you're building any property, nothing always goes according to plan. your job is to limit the costs from escalating when shit happens. if you don't even know what's going on, how can you prepare for them? it's not a casual manner like going to a restaurant and ordering a burger and then sitting back and doing nothing. you'll be putting down a lot of money so you really shouldn't take it so casually. like i said, you have to do your homework, really. you can't be lazy about it, be unprepared, and go with the flow or it'll be pretty expensive for you.

[poido123]

it doesn't matter if you build one or ten. it's the same rules. and the potential risks for errors are similar. you will be involved in a process that requires more attention from you than you understand because when those errors occur, you will be responsible for them. when you're building any property, nothing always goes according to plan. your job is to limit the costs from escalating when shit happens. if you don't even know what's going on, how can you prepare for them? it's not a casual manner like going to a restaurant and ordering a burger and then sitting back and doing nothing. you're be putting down a lot of money. you really shouldn't take it so casually. like i said, you have to do your homework, really. you can't be lazy about it and go with the flow or it'll be pretty expensive.

Burgers at a restaurant, buying house same shit.


Either you are assuming I haven't got a clue how to wipe my own ass or you're genuinely concerned and trying to offer help with that concern?...



Who knows. My thread question is simple. I'm wanting to know (from people's own experience) of what combination is best from a first home investment perspective. Nothing more.