Advice on My Three- Year Plan (long)

Tango · #21 07/27/04, 03:48 PM

Thank you for your generous replies. I have decided to put the back lot (which is on a "main" road) up for sale for $25K. If it sells we can pay off some debt. If it doesn't sell, we will ride out this wave. I won't take less for it. I can't rent, though I think many others could in the same situation. I have way too many animals, including large reptiles, which turn off homeowners. I am keeping my livestock and if and when we move, they will be coming along. My neighbor told me this weekend that he might stay for a few more years as well. He has 2.5 acres in an area much further back that he is thinking of selling to pay off some debts. Meanwhile we received notice that our "assessments" were going to increase for the third year in a row. I think we will try to add on to our 5 acres in the northern central part of Florida. If we can do that, then our move won't be too far away. That will give us ten acres on a river. Thanks again for helping me think this through.

OUVickie · #22 07/27/04, 04:34 PM

Quote:

Originally Posted by Tango

. Instead of expanding, I am thinking of selling my furthest lot. If I could get $20K for it, I could pay off a few debts. In three years I could sell the house and additional property and pay cash for more land somewhere else. But if the market bottoms out; I won't be wanting to sell my house and I will be having to put up with neighbor's even closer than I do now. I'm really torn about this. I don't want to sell anything if I won't be able to buy something in a few years that is reasonable. BTW, I also own 5 acres further north in Florida but to my knowledge that is still the same value as when I purchased it five years ago. That is an investment- I don't want to live there. The lot is too narrow but it is on a river. Sell one lot at these high prices? Don't sell but wait to see what happens in three years?

Well, if you need the money and could get that much for the furthest lot, it might really help you and they wouldn't be right next door. But if you're gonna regret it and like living where you are, I think I would stay put and keep what I have. Keep chipping away at your debts and you'll get there.
You know that one lot could be worth 10x what it is now in 3 years!

Laura Workman · #23 07/29/04, 08:07 PM

You might just consider taking an option on your neighbor's property. Offer him a couple of thousand now for the option to purchase in three years. If you need to use the land for pasture, or whatever, offer him fair rental for it in the interim.

Also, 2.5 acres isn't necessarily equivalent to two 1.25 acre lots. A lot is a lot, and a big one generally just isn't worth that much more than a small one unless it's already subdivided, a costly and time-consuming enterprise. We have an acre and a quarter. The appraiser gave us all of, I think, around $5000 value for the extra acre over the quarter-acre lot sizes of comparable homes. This is in an area where the average one-quarter acre building lot is about $80,000. And yes, I do have all of my zeros in the right place in both figures.

Is his land even OK for a building lot, or is it possibly strictly ag usage? If it floods or won't perk, that will SIGNIFICANTLY decrease the value because he doesn't really have a "building lot." Perhaps a little research is in order.

Tango · #24 07/30/04, 06:43 AM

Quote:

Originally Posted by Laura Jensen

You might just consider taking an option on your neighbor's property. Offer him a couple of thousand now for the option to purchase in three years. If you need to use the land for pasture, or whatever, offer him fair rental for it in the interim.

Also, 2.5 acres isn't necessarily equivalent to two 1.25 acre lots. A lot is a lot, and a big one generally just isn't worth that much more than a small one unless it's already subdivided, a costly and time-consuming enterprise. We have an acre and a quarter. The appraiser gave us all of, I think, around $5000 value for the extra acre over the quarter-acre lot sizes of comparable homes. This is in an area where the average one-quarter acre building lot is about $80,000. And yes, I do have all of my zeros in the right place in both figures.

Is his land even OK for a building lot, or is it possibly strictly ag usage? If it floods or won't perk, that will SIGNIFICANTLY decrease the value because he doesn't really have a "building lot." Perhaps a little research is in order.

Thanks Laura, these lots were all subdivided years ago. Mine and his are 1.25 acres each. This area is all flood zone- there are 4 different flood zones here and plenty of wetlands that may not be changed. That is one of the things I don't understand about this price boom. Perhaps in an area like Palm Beach county where land is at a premium, one would want to pay $25K for an acre of wetland beside his house just to have the buffer. But there is nothing out here (tax rate is ridiculous) and land can be purchased anywhere. We also have protected gopher tortoises out here as well. Which I must say are overlooked everytime construction starts and I've made complaints. His land is cleared and it is the same flood zone my house is on. Thankfully he is reconsidering and looks like he may hold on to it a little longer.