Advice on Homesteading...

[Thales]

My wife and I have saved a sufficient amount of money to put about a 7% down payment on a 6.5+ acre plot of land that we've fallen in love with, and then have a wee bit left over to purchase an RV or TT to put on the land and make some minor improvements. We currently live in an apartment and pay just under $1k a month figuring in rent, utilities and the like. Having made very liberal estimates of our total costs living on this land we would be spending just over half of what we pay now...

My dilemma is whether or not to save the money or go ahead and purchase the land. The both of us have somewhat stable jobs, she's a Pastry Chef and is graduating from college in a few months and I'm a manager for an independently owned cellular phone store. I have this feeling of dread about what is coming and I know what limited preparation we've made in our current situation will be insufficient.

We've still got about 6 months in our lease and we would stay where we our until then, luckily the land we're looking at is about an hour away from where the both of us work. I'm also concerned that we might end up in over our head, we've never owned anything more expensive than our two vehicles. Both of us have always rented, at one of the properties we kept a large garden, managed the land, raised some chickens and lived a semi-rural life.

So... based on what information I've provided and your own experience would it be advisable to go ahead and purchase this land or save our money?

Thanks for any replies, I know this is some what of a strange question.

-Thales

[Beeman]

What is your debt right now?

[Thales]

I owe about $2k on my truck, monthly payments of $200. Other than that we owe no debt.

-Thales

[chewie]

buying land is seldom a mistake. if you really love it, work on your figures, and do it. it doesn't sound like you are suffering any debt, and the truck (assuming its a pickup?) will be needed on the acreage. is that amt of land enough?? i don't see where you are, some places that much land could raise alot but in others, its not much at all. and nobody says you have to live on it right away. we bought our 16 acres 10 years ago, and will only start living there next week. having jobs and housing, it was nice to NOT to have to live on the place til now--now its paid off, and we can put money into a house. campers for now, a house later this year.

you don't hve to do it all at once, buy the land, and fix it up while you have weekends, etc. then when its time, things will go smooth in moving. we made the mistake of not doing as much as possible til now, when we need it, so this last coupla weeks has been a real hard core work time.

[heather]

I don't think a 7% down payment is very much, but maybe that's just me.

I think one of the big questions to ask yourself is HOW you like to live.....are you used to running water? electricity? etc....or are you willing to try to live in an RV while working, going to school, etc....Of course it can be done, just depends what you're willing to live with for a while....

Is the land zoned? Does it have any improvements yet? Have you had it tested for water/sewage? Do you need permits? how easy are they to get?
Did I understand correctly that your land is an hour from where you work? that seems far to me -
Lots of questions -

I know what you mean about a sense of dread at what is coming at us economically - I can certainly understand your wanting to move to the land & get started on your homestead....I wish you well!

[Thales]

Originally Posted by heather

I don't think a 7% down payment is very much, but maybe that's just me.

I think one of the big questions to ask yourself is HOW you like to live.....are you used to running water? electricity? etc....or are you willing to try to live in an RV while working, going to school, etc....Of course it can be done, just depends what you're willing to live with for a while....

Is the land zoned? Does it have any improvements yet? Have you had it tested for water/sewage? Do you need permits? how easy are they to get?
Did I understand correctly that your land is an hour from where you work? that seems far to me -
Lots of questions -

I know what you mean about a sense of dread at what is coming at us economically - I can certainly understand your wanting to move to the land & get started on your homestead....I wish you well!

I miscalculated the down payment, it's actually around 10%. $29k with $3,400 down.

We're looking at having a power pole put in for about $400. It has a well and a septic tank. It is not zoned currently and has no building restrictions on it beyond a 70' right of way.

I went out on Sunday and took some pictures of the work being done; http://www.srvive.com/land

I live in lower Alabama, near the Gulf Coast.

-Thales

[ErinP]

So in other words, it's ready to put a house on?

I'd buy it in a heartbeat.
(But then, our need for a "place to screw down" as a neighbor puts it, outweighs almost any other need right now)

[Cotton Picker]

Hi Thales,

I'm going to echo Heather on this one. IMHO The cost's of the hour's drive will push your monthly overhead back up to just about your current level. If fuel goes back up to around $5 per gallon, you might end up hurtin' fer certain.

I would ask you just how rough have you lived in the past and just how rough are you willing to live now in order to make your dreams a reality?

Are there jobs closer to where you plan on living? How much seniority do you and the Missus have at your current employ?

Would you be able to lower your living expenses in order to save more money? (Not a bad plan whatever you decide to do) Ya might try livin' like a couple a rats (on the cheap) in the city in order ta see if ya could take that kind of an existence out in the country.

Just Sayin'

[halfpint]

Even though it is not zoned, you need to check to see if you can put an RV or trailer on it. There are a couple of counties in Alabama where you are no longer allowed to put in a trailer without it being a licensed trailer park - regardless of the zoning or lack thereof.

I would be surprised if you could get a loan on land with only 12% down, but it may be possible. Do you already have the financing set up or is it owner financing?

Have you included the extra cost of car insurance for the longer drive, and gas and wear and tear on your vehicles? Don't forget property taxes; until you get a home on the land, you probably won't be able to file for the homestead exemption.

Dawn

[Thales]

Originally Posted by Cotton Picker

I'm going to echo Heather on this one. 7% isn't much of a down payment and the cost's of the hour's drive will push your monthly overhead back up to just about your current level. If fuel goes back up to around $5 per gallon, you might end up hurtin' fer certain.

With the Verizon/Alltel merger going on we're actually in the process of opening two more stores that I'll be managing, so I will have the option of anchoring my office closer by, about 25 minutes away.

Originally Posted by Cotton Picker

You don't mention a water source (well or municipal) or sewage disposal source (septic or municipal) If the property has neither, just how rough have you lived in the past and just how rough are you willing to live to make your dreams a reality?

Is there zoning? Does it allow for you to even park and live in an RV or TT on site?

Are there jobs closer to where you plan on living? How much seniority do you and the Missus have at your current employ?

Well water, septic tank. No zoning, just a 70' right of way on the front of the property that we can't build a permanent structure on. My wife has spent time around farms, I was raised around the outdoors and I was in the Army. I've gone as rough as sleeping on the ground in nothing but my BDUs, ruck and rifle for 17 days.

There are jobs closer nearby, the county "hub" is about 10 miles away. We're about 35 miles from Mobile. Another great thing is the proximity to the school I'll be attending next semester. It's only about 15 minutes away, whereas now I'll be making that 1 hour drive to get to class.

I have quite a bit of seniority. I've been with this company since we opened our first store, I developed all of the store procedures and practices and have trained all of our sales staff. I am paid mileage driving in between stores. My wife is starting a new job as the Pastry/Sous Chef at a local hotel, she's worked with the executive chef previously and she was one of her instructors in school, no seniority though. Unfortunately in the current economical climate nothing is certain, thankfully we do receive some passive income from my wife's trust account.

Originally Posted by halfpint

Even though it is not zoned, you need to check to see if you can put an RV or trailer on it. There are a couple of counties in Alabama where you are no longer allowed to put in a trailer without it being a licensed trailer park - regardless of the zoning or lack thereof.

According to the ordinance I've read and the county engineer I've spoken with we are able to put in a travel trailer.

Originally Posted by halfpint

I would be surprised if you could get a loan on land with only 12% down, but it may be possible. Do you already have the financing set up or is it owner financing?

Have you included the extra cost of car insurance for the longer drive, and gas and wear and tear on your vehicles? Don't forget property taxes; until you get a home on the land, you probably won't be able to file for the homestead exemption.

Dawn

It is owner financed, we've already secured the financing. I've got a family friend taking a look at the purchasing contract who is a Corporate Lawyer and former real estate agent.

We haven't included the cost of car insurance or wear and tear. My wife gets about 32MPG and my truck gets about 25MPG, it is a flex fuel with a propane hookup (Pretty spiffy). We've already inquired about taxes on the land and have figured those into our expenses.

As it is right now we earn enough to pay all of our bills and put about $800 to a $1k away in savings per month, when the wife starts her new job we'll be increasing our income as well.

Hopefully I've addressed any questions that might make advice on this subject easier, though I wish I'd included them to begin with.

Thanks so far everyone! It feels good to know that I've at least looked into or inadvertently seen to some of the concerns you more experienced individuals have given me.

-Thales

[Beeman]

1 year ago it was all a sure thing, today it's not so sure. Being free both from debt and not tied to a place with a mortgage will have advantages. Jobs, nothing is secure. If the land is affordable now it might be cheaper in a short time.

[BTO]

Originally Posted by Beeman

If the land is affordable now it might be cheaper in a short time.

It might also be sold!!!

[Harry Chickpea]

I'll be the first to say "go for it." Is the $400 for having the trailer pole set, just the connection cost, or the cost of the pole itself? Too bad you are at the other end of the state, I have a spare 200 amp one all set to go that I've been wanting to sell.

If you have sewer and a working well, you are in good shape there. You are aware that the pine forests can catch fire and wipe out anything in the path of the fire? Seeing you have some standing water, I'm guessing you could fill up a couple of cheapie swimming pools with water and get a gas pump for at least some minor firefighting?

One other issue that I see is security. If you are isolated in the woods, then you are a target for break-ins. You'll need to consider an alarm, dog or other watchcritter, and some sort of way to know who is coming around when you aren't there. Deercams or X-10 cams, or something along those lines can give you a photo record as long as you hide them and don't go blabbing.

If you go with an RV or TT you'll not have to follow the Alabama codes on tie down straps, proper foundation, and all the stuff that mobile homes now have to comply with.

DW and I lived most of a year in a 32' TT until our home was built and delivered. Going that route will allow you to "test the waters." If it looks like it works, you sell the TT and build or buy something bigger and more permanent.

[Maura]

I would wait. Save as much as you can. Have you done a market analysis on vacant land in the area? Is there any pressure to buy? I don't know what the market is in your area, so I can't speculate as to whether you are getting a good deal or not. I wonder if you waited another year if you couldn't get a better deal on a piece of land, as well as be in a better purchasing position since you'd have more money saved.

We have 6.5 acres, and you know, it isn't a lot of land.

[Thales]

We made the plunge and paid the $500 earnest money to take it off the market. We close on the 21st of March and thanks to a wedding gift we will be able to put about $8,500 as a down payment.

The wife and I spent yesterday hacking our way through the land and discovered it has a small pond on the back right corner. It has frogs, crawdad and some small fish. The lot was originally going to be water meter only but the well digger mistakenly installed a well on this lot as well, so we'll have city water tap and well paid for, we just have to buy the well pump and test the water.

We spent a few hours assessing the work and came to the conclusion that our starting point will be cutting into the land from the driveway and clearing our home site. We're both very excited by the whole thing, we even spotted a few deer on the back part of our property that backs up to a 20 acre lot.

Next weekend we plan to camp out and work all day Sunday.

On a side note, we bought a Poulan Pro 18" 42cc chainsaw... piece of garbage. We cut two thin pines down and then into logs, thing was dull after 20 minutes and then it threw the chain and would NOT go back on. Lowes replaced it with a new, new one, the original was less than 24 hours old. Anyone have a similar experience with the Poulan? I may go back and pay a little extra for a Husqvarna.

-Thales

[Cotton Picker]

Hi Thales,

Congrats on your land purchase. Best of the best to you and your Missus as you launch into your adventure. I think that it's great that both of you are equally excited and motivated, much better chance of success that way.

As for a Husqvarna, Sears sells them. http://reviews.sears.com/2328/07135267000P/reviews.htm

I have had good service from the Craftsman saw too. The thing that puts it over the top on Sears is that you can get a service agreement for three years for about $60. When I had one it even covered chain sharpening, new chains and bars etc. It was a no worries deal, IMHO well worth the cost of admission.

By the by, A new chain will stretch a bit. You need to kep an eye on it and adjust the tension accordingly. If you grasp a link (mid bar) you want no more than three links to clear the bar... More... Too loose.... Less.... Too tight. Chain will get dull quick if you get the saw into the dirt, or cut through dirt on the wood. Invest in a manual chain sharpener, not just a file, (Top photo on right): http://www.oregonchain.com/accessories.htm
It holds the file to the right depth, as well as, has guides for holding the proper angle. Make sure to get the correct kit for your saw chain.

I would also recommend that you hit the chain with the file every time you fill the tank with fuel. I don't recommend machine filing of saw chain. It's bad to anneal the cutting edge, causing the teeth to be soft. They don't stay sharp very long that way.

If you plan on clearing the home-site by hand, you might invest in or rent a brushcutter.
Example:
http://www.alibaba.com/product-gs/20...showimage.html
The one picture would be a Cadillac. You can also get them with the engine on the upper end of the stick.

Hope this helps.

David

[BamaSpek]

Originally Posted by Thales

We made the plunge and paid the $500 earnest money to take it off the market. We close on the 21st of March and thanks to a wedding gift we will be able to put about $8,500 as a down payment.

The wife and I spent yesterday hacking our way through the land and discovered it has a small pond on the back right corner. It has frogs, crawdad and some small fish. The lot was originally going to be water meter only but the well digger mistakenly installed a well on this lot as well, so we'll have city water tap and well paid for, we just have to buy the well pump and test the water.

We spent a few hours assessing the work and came to the conclusion that our starting point will be cutting into the land from the driveway and clearing our home site. We're both very excited by the whole thing, we even spotted a few deer on the back part of our property that backs up to a 20 acre lot.

Next weekend we plan to camp out and work all day Sunday.

On a side note, we bought a Poulan Pro 18" 42cc chainsaw... piece of garbage. We cut two thin pines down and then into logs, thing was dull after 20 minutes and then it threw the chain and would NOT go back on. Lowes replaced it with a new, new one, the original was less than 24 hours old. Anyone have a similar experience with the Poulan? I may go back and pay a little extra for a Husqvarna.

-Thales

Hello and welcome. We are neighbors. We just purchased 10 acres in Baldwin County and we are getting it ready to live on. I have that same Poulan and have had little problems with it. Add Bar oil and mix and cut away. I cut about 10 big pines down a few weeks ago.

[BamaSpek]

If money allows it, I would recommend having a mulching unit come in and clear your perimeter and house site. It is amazing what they can do in a few hours. It is costly but immediate gratification and in the long run well worth the money spent.

Here is the link to the work we had done. We are having someone ocme ot again tomorrow and clear a garden/coop spot and water line lanes. Is this Bush Hog Or Dozer work

[VOR.]

Originally Posted by Thales

We made the plunge and paid the $500 earnest money to take it off the market. We close on the 21st of March and thanks to a wedding gift we will be able to put about $8,500 as a down payment.

The wife and I spent yesterday hacking our way through the land and discovered it has a small pond on the back right corner. It has frogs, crawdad and some small fish. The lot was originally going to be water meter only but the well digger mistakenly installed a well on this lot as well, so we'll have city water tap and well paid for, we just have to buy the well pump and test the water.

We spent a few hours assessing the work and came to the conclusion that our starting point will be cutting into the land from the driveway and clearing our home site. We're both very excited by the whole thing, we even spotted a few deer on the back part of our property that backs up to a 20 acre lot.

Next weekend we plan to camp out and work all day Sunday.

On a side note, we bought a Poulan Pro 18" 42cc chainsaw... piece of garbage. We cut two thin pines down and then into logs, thing was dull after 20 minutes and then it threw the chain and would NOT go back on. Lowes replaced it with a new, new one, the original was less than 24 hours old. Anyone have a similar experience with the Poulan? I may go back and pay a little extra for a Husqvarna.

-Thales

Congratulations and good luck to you.

I would pay extra for the Husky. I primarily use Stihl products, but they don't carry them at Lowe's.

[PhilJohnson]

Thales, congrats on your new adventure I think you'll find owning your own place beats the heck out of renting. I would rather live in a shack and own the land it sits upon than rent a mansion.