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Do you know where you plan to be 10 yrs from now? Will you be following where your career oportunities take you? Seems thats the bigger question you need to answer first, because any suggestions people offer are relative to how much of a timeline you've got. Short term, a duplex would make most sense, presuming you're in an area with stable economic activity. $700 mo rent sounds like it's active, and should you need to leave you'd have the option of renting out both sides assigning property mgmt to a proffessional. Because real estate is so over valued right now I don't think you'll be getting large returns on your money through appreciation the way its been happening the past 10yrs.
Pro's in the biz will argue about this infinately. I'm not a pro but IMO sellers of yestorday were cashing out the appreciated values projected 15yrs ahead at the expense of the buyers. Many in the industry benefit from instant gratification through inflated pricing when it increased their commisions. Fact is, the price of housing simply isn't in line with salaries of avg americans. Something's gotta give, and I'm betting american salaries won't be going up 35% (or whatever % the over value gets accessed out).
Longer term projects won't let you cash out quickly without taking a loss. Big enough parcel of land attached to a small older house or a mobile home can be a springboard to new construction on that land if you have the option to subdivide in the future. Benefits being the utilities are already nearby and extending their range won't be as $$$ as raw land. Once the other house is built you could rent it out or outright sell it. Taking a second job as a landlord isn't for everyone. It's work, not free money. It's also a winding path toward home ownership that takes more time and effort, but the keep the larger % of the fruit of that labor.
You'd have to do the math that pays close attention to local factors. The material life left of the mobile home + price per acre vs overall price. Sometimes the land attached to a crummy structure is worth more than the actual structure, and it makes sense to buy if you plan on sticking around. Structure being salvagable, how much will it cost to get it up to code/liveable/rentable? Structure being unsalvagable, how much will it cost to tear it down/removal? What's involved legally? Just some things to consider before you commit yourselves.
Hopefully, we've helped you avoid some pitfalls. Good luck!
if we ren for 5 years, we will spend a minimum of $700*12*5=$42.000.... though rent may go up in price.... so we can take $45.000.
if we rent for 7 years...$700*12*7=58.800... roughly $60.000.
instead of renting we could make a payment for our own house... $60.000+ downpayment of $15.000-$30.000....
I think it would be a good idea to save for one or two more years, and then buy a small house (instead of renting for 5-7 years)...
Thanks for all the ideas and suggestions!! I haven't thought about buying a duplex...as I always wanted to have some land to have a garden... but i will think about duplex as well...I like thinking ahead..
Have you checked into VA loans? You may be able to get into a small home if you use the VA loan option. Since you want some land, you may want to look for an older home on an acreage. Make sure there is space beside this home for another house. Live in the smaller home until you can build and then you will have a rental home to help with expenses. As you go across the NC countryside, you will find lots of smaller homes setting next to the "big" house. Later it could be a child's first home or an adult parent home. I may be wrong, but I don't think it is ever bad to have land, although we are paying a lot of taxes on the land we own in the mountains.
Please stay away from those variable rate loans. Make sure the loan rate you get will stay that way. I believe those loans are making lots of people lose their homes.
i would be very cautious about purchasing land and mobile home. lots to think about, local zoning codes, wells/water/sewer etc. would you be able to re-sell the mobile home when you were ready. whether or not your local codes would allow a mobile home to remain on a site with a regular house? I really think your best bet would be to look for a condo/townhome/duplex etc. that would be able to be re-sold with less difficulty. good luck. taking that first step to home ownership is a big one. another option in these economically difficult times are to check the foreclosure market in the areas that you are thinking about living in. It sounds terrible, but someone else's misfortune good be good luck for you!
Mobile homes do not re-sell well at all. You might try looking for an older home that needs some work on a decent lot. You can save a lot of money that way. Since you are younger, you could work on any upgrades/work the house may need.
My answer is a definite YES. You can get land for 10,000-15,000 for one acre. You can get park model or small mobile homes for 20,000. You can live in it while you build your home. You can pay it off soon. Paying for it builds a credit history for you. People say it does not hold value, and it does not build value, but it will re-sell. In this 2 year post-Katrina market there are still lots of people looking for a small less expensive alternative. It would sell or rent easily. The market in Mobile, AL is great for something like this. We have 27 mobile home parks and too many to count mobile home "cities" in Mobile county. Very popular choice here.
I think it's a good idea provided you get an older mobile home, buy it second-hand, then stick to your plan, save up the $ for a house. If you get a good deal on a second-hand trailer, if you keep it in decent shape, you should be able to sell it and recover most of your money. Place the trailer close to where you want to build the house, but not in the way of building, that way you can live in it till the house is ready.
The ideas about fixer-up houses and about duplexes are also good. Duplex renting is a part-time job though, realize that going in.
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