Mortgage Free Homesteading

[PeaceofMind]

Did anyone start off their homesteading journey without a mortgage?

Buy a house and pay in cash is not something we commonly hear so I am just wondering.

[prometheus]

We payed cash for our 30 acres and had enough cash to pour our concrete. Does that count?

[PeaceofMind]

Yes it sure does.

I'm just looking for some inspiration as I'm working towards my goals.

[texican]

I paid cash for my land. Worked for family to get the rest. Built a home with cash only (did 105% of the work myself). Moved in without owing my soul to a bank.

Of course, in the process, there was no partying, no wild women, no tahitian vacations, drugs, alcohol, eating out... yada yada yada... you know the stuff most people blow their money on. Their still paying, though!

[copperkid3]

We were given our little piece of heaven (10.0+/-acres) by my parents almost 12 yrs ago and have paid cash or
sweat equity for everything else that has gone into it and all the other out-buildings around the homestead.
Moved into the place officially just 3 yrs ago and haven't taken out any loans yet and don't plan to, even though it STILL isn't finished.

We pay as we go; meaning when we can scrape enough to do another project then we do it.....otherwise we wait
and do something else that can be done with the stuff that we already have at hand or can scrounge up.
We are GREAT scroungers and love to reuse if at all possible. In fact, the main floor joists in the first floor were
recovered 2x12's from a former fertilizer plant.....some old growth douglas fir that you just don't find anymore.
That wood spent a couple years outside in the rain, snow and sun to get the smell and salts out, but when we
finally got around to drilling holes for piping and electrical, there still was an odor that would almost knock your socks off.
The main I-beam was actually 2 shorter pieces of 6"x8" that had to span 32 feet; had a local welder bring his portable welder out
and fire it up and weld them together, then got another local man with a wrecker and a snatch block attached to a nearby tree and
somehow we managed to get that ton plus piece of metal, to fit into the slots in the concrete walls of the basement. The floor and
first floor walls were already up when we decided to pour the basement floor on Sept. 11, 2001. Somehow we got the cement truck
around to the back of the house and ran the shoot through the window and then removed a section of the subflooring to get the concrete
where it needed to go. The metal roof is solid with no holes in it where we might have to worry about a leak......all planned for ahead of time.
Expensive.......yes, but we wanted something that we wouldn't have to fret about in our old age. Worked on many a roof in my younger years;
don't plan on doing it again when I'm 90!!!


Ah yes, home, sweet home.

[Bearfootfarm]

We paid cash for the house and 44 acres

[cowboy joe]

Couldn't convince the banks to lend us money for raw land and the parcel was too small for a farm loan so bought the first piece of land on a lick and a prayer...that means no cash, entirely leveraged against a big note, and lots of risk. BTW, in hind sight this was a huge financial risk and not a good way to buy anything. Subdivided & sold a building lot for more than we paid for the entire piece. Luckily the closing for the lot happened on the same day the note was due...which happened to be the same day that my second daughter was born. The paralegal from the attoney's office was nice enough to stop by the hospital to drop off the check after the closing...a few hours later I met with the note holder and the broker. Paid the note on time thereby avoiding several thousand dollars in interest (the way the note was constructed). Youngest DD was born ~8 hours later. So we owned the property free & clear...until former spouse insisted on building a mcmansion.

Anyway, after that chapter in life closed, I was on my own again and had to take out a loan for a house and property. Slept better at night than when I had the note. Worked hard, scrimped & saved to pay down the mortage. Refinanced along the way when the rates dropped which saved thousands in interest. Free & clear in 6 years.

[stranger]

I owed over 270 thousand 30 yrs ago(that's a lot of sleepless nights) and am debt free since about 1999.

[EasyDay]

We paid cash for the land. The old house wasn't worth a dime. Then, over several years, we rebuilt the old house one step/one dollar at a time. By the time we finished, we were able to sell our house in town, pay any remaining debts off with the profit, and move to the farm debt-free.

It can be a slow process, and certainly not for those who need instant gratification, but WOW!... what a feeling! Highly recommend the "debt-free" drug to anyone!

[brewswain]

I paid cash for 5 acres but decided it was too small, so then I bought 19 acres for cash.

[bubbahead]

I think the question is kind of misleading. I think a better question would be who paid cash for their "first" home. I think quite a few folks probably made wise real estate buys (using a mortgage) and then sold at a profit and used the profit to purchase another home/land.

[Txsteader]

We paid cash for our property and built the house ourselves, payday to payday.

[homesteadforty]

I haven't yet but will be as soon as I find the right property (I'm actively looking in north central West Virginia if anybody has or knows of anything). It will be my first property purchase.

I'm almost packed, moving from the Baltimore metro area the first of June. Gonna camp until I find/purchase the property, then move the camper onto my land and live in it until I get my cabin built... I can't wait .

[AnnieinBC]

We did, pretty much exactly as bubbahead stated above....we lived on the Coast, on a waterfront place actually. Once the real estate prices started going thru the roof, our realtor (and friend) told us what our property was worth.

It didn't take long for us to decide to go for it. We sold, lots of nice profit, tucked in the bank, plus a big house on almost 12 acres.

We haven't regretted it once....no stress and hubby works when he has something special in mind to build or buy (like his shop

Now we raise most of our own food and meat....it's a busy life in season, but we just love it. We were lucky with the timing of it all, but even then, I didn't think the houseing bubble would last. I'm glad we moved!

Annie

[PeaceofMind]

Originally Posted by bubbahead

I think the question is kind of misleading. I think a better question would be who paid cash for their "first" home. I think quite a few folks probably made wise real estate buys (using a mortgage) and then sold at a profit and used the profit to purchase another home/land.

Hmmm didn't think about it that way but maybe that is kind of what I was asking.

I was just wondering how long it took to save up that kind of money and what kind of sacrifices had to be mad.

[Ode]

Originally Posted by PeaceofMind

Hmmm didn't think about it that way but maybe that is kind of what I was asking.

I was just wondering how long it took to save up that kind of money and what kind of sacrifices had to be mad.

Your rate of saving will always be different from mine or anyone else's. Same goes for the sacrifices. If my husband and I were willing to sacrifice more, we could save more, but we already feel like we sacrifice enough for our savings goals. As it is, we should be able to pay cash for our property in a few years, and plan to use what we get from selling our home (which will be paid of in full before selling it) to build a home on the property.

BUT we will not be building the house for 10-12 years as we have to stay here until my hubby has in enough time to qualify for his pension as well as medical benefits for us both in retirement. In the meantime, we will focus on improvements to the land, clearing the area for the house and road, getting a well dug, etc. The biggest sacrifice we are making is in sacrificing our wish to retire earlier in order to make sure we have medical coverage and pension benefits...medicare and social security really aren't something we want to count on given the current state of things.

[PeaceofMind]

Originally Posted by Ode

Your rate of saving will always be different from mine or anyone else's. Same goes for the sacrifices.

Thanks.

I'm just looking for inspiration, not specifics as in "how much did you save and how much do you make?" That's tacky and one size does not fit all. I am well aware that my circumstances are different than everyone elses.

Still it's nice to hear stories of people who have been where you are trying to go. Especially when the majority of what you hear is "that is not possible to do that" or "you'll be 75 before you get a house" or "just get a mortgage because that is how you do it"

I'd rather hear "my family saved for 15 years and paid cash" or whatever the case may be.

But maybe "they" are right and that's not something that people do. But it never hurts to ask.

[AnnieinBC]

Could you save enuf for the land, and then put a inexpensive mobile home on there to live in for awhile? Then you would be on your property, could plant fruit trees, etc. and not have to pay monthly rent.

good luck,

Annie

[retire2$]

It can be done. I will post our journey after this bit of advice. You will need to set your goal and plan on how to get there. If your goal is to have a house already on the land you will need more money than if you start with raw land and are able to build as you go. Sacrifice and time will be the name of the game. Your expenses will need to be less than your income. The more you sacrifice (living expenses, toys, vacations, working two jobs, etc) the more money you will save and the sooner you will accomplish your goal.
Our journey. I was 20 and my wife was 19 when we married. We lived in a single bedroom duplex that my parents owned - CHEAP rent. My wife's parents gave us a half acre lot to build on. We both worked full time jobs. I had never built anything except a dog box before I started building our house. I read everything I could about building for two years. The money we had saved during that time went for building the basement. It took me over a year to lay all the block. The money saved during the block laying period went for framing lumber. By the time the framing was done we had saved enough to finish the basement. We moved into the basement and worked at completing the main part of the house. If we had time and had not saved enough money to move on to the next phase we would take a small ($1000 loan at late 1970's prices) personal loan. We never had a loan using the house as collateral (mortgage). Time line went like this: Duplex living 1972-1976, Basement living 1976 - 1979 while finishing the rest of the house. This worked well and in 1983 I bought another lot and started building a little at a time. In 1986 we moved to the new house. We rented the first house I built while living in the second house. In 1992 I bought another lot and started the same process again. I completed the house in 1995 and moved into this house. This was our plan that met our goals with our capabilities. I hope that this is the inspiration that you were asking for, but the bottom line is what YOUR goals are and what you are willing to do to achieve them. Good luck to you. P.S. During this time we were not only building a house we were also building a family (5 children).

[MushCreek]

We're not there yet, but we're getting close. We bought acreage in SC for cash, and we've been saving a good percentage of our income for our eventual house there. We should have enough equity in our current house to build the next one, but we are putting money away like mad in case real estate continues it's plunge indefinitely. I'm going to take a year off of work to build the house, and start getting the land into productive shape. My wife will continue to work, and we can just make it on her salary alone. I'm planning a small, modest home, since we are empty-nesters, and that will make the house cheaper and easier to maintain. I'm too old to work and build a house at the same time- I want to get it done and get on with my life!