My husband is getting out of the military and we are already paying a mortgage on a lot that we bought to build a home on. (We bought the lot for $41,000 and it appraised at $50,000.) We don’t have much cash so we figured we had two options…
- Qualify for a $200,000 construction loan to build a home on our lot. (this lot is where I want my dream home).
- Buy a fixer upper investment house, move into it for a year or so, rehab it really nice, sell it for a profit and use the money to build ourselves an even better home on our lot.
Which route would you take?
Buying or building your own home is such a personal decision that it would be difficult for anyone to give you good advice.
There are a couple of points to consider.
If you want to live in a house and eliminate the tax on the gain the general rule is you live there for two years. If you have kids do you uproot and move them after two years. Then there is the actual hassle of moving.
In todays world of unsecure employment do you feel that there will not be a move for years after you build a dream home. Your tastes may change as you and your family matures. Grandkids are a definate lure wherever their parents live.
The dream hope may be a good idea if it can be supported by a single income. With both having to work when do you enjoy it.