pghmyn Posted April 15, 2014 Report Share Posted April 15, 2014 So I know you may be tired of all the different questions I have about a home, but there are so many ideas just floating around in my head about what I should do with my future. I've been looking at "fixer-upper" homes right now, because I don't mind doing work myself instead of buying an expensive house with the work already done. However, I also toss around the idea of building my own home for my first home. Sounds a bit out there, I know. Especially with my budget. But, for argument's sake, neglect the budget that I have - within reason. What other factors go into the following scenario: Buy a plot of land: $39,900 (0.65 acres, with all utilities run to lot ready for building) Buy a kit home from Menards - or wherever else ($47,500 with tax) I'm not sure of any extra fees, but with uneducated assuming that there isn't, that is just under $88,000 so far. Alright, so I give the kit plans to a company to pour and create my foundation and whatnot. I'm not sure of cost there, so I wont even estimate it - anyone have a rough idea for this cost? The kit is delivered on site, and "everything" is there and ready to be built. At least that is how I understand it - again, blindly assuming this. With all the permits that I would have to apply for, what types of subcontractors would I necessarily need to hire for this? What work is reasonable for me to do myself, with the help of family? Where are the biggest opportunities to save money? If I have a friend who does construction for a living come and help me (more-so give me a a list of to-dos, and instruct where needed), does this seem feasible? If I did this route, and completely hired out the work to be done, what is a fair idea of how much labor would cost? I'm asking you guys this in confidence that it doesn't turn out to be a, "You are young, naive, and don't understand a thing." I really would like to know if an option like this is really just ruled out by all means. Or, if it is worth it to save an extra year and invest in something like this. Quote Link to comment Share on other sites More sharing options...
..Kev Posted April 15, 2014 Report Share Posted April 15, 2014 Sam, I would suggest talking directly with manufactured home dealers in your area that can answer all these questions appropriate to your area. I know that many here offer land/home packages where all those costs are combined.. 1 Quote Link to comment Share on other sites More sharing options...
Tpt life Posted April 15, 2014 Report Share Posted April 15, 2014 Basements in northern IN ballpark at $10K. I am not sure about footing and stub walls or slabs at the moment. Also, don't be afraid to go to you inspector. Some will point you to appropriate coding to help you plan. Some will not, but you never know until you try. Quote Link to comment Share on other sites More sharing options...
Llama Posted April 15, 2014 Report Share Posted April 15, 2014 Come on Sam... I wouldn't buy a birdhouse from Menards. In all seriousness, save a little longer and buy one of those Belinski homes. I think they start around $165 or so. They always have a deal, and it's new construction. It seems like you're almost done with school, so that should mean a raise. I guess my best advice is don't force it. You'll get a house and it will be great. Maybe not the first one, that's why they're called starter homes. Not meant to stay in until you die More of a stepping stone. Quote Link to comment Share on other sites More sharing options...
Boatworks Today Posted April 15, 2014 Report Share Posted April 15, 2014 I'd vote for the fixer-upper with the most potential to start and use it as a stepping stone. We bought our first place for$40k (15 years ago and it was a dump). Gutted it, put another 10K into it and worked on the weekends for a couple years. Sold it 2 years later to the day to avoid property gains taxes and almost doubled our money. Took the profit and paid cash for some property, used that as collateral and built the house we're in now (at least the main portion of it; additions will come as the family grows). Quote Link to comment Share on other sites More sharing options...
G S Haydon Posted April 15, 2014 Report Share Posted April 15, 2014 It's a tough one Sam. My first and current home was a timber frame kit, it's fun to do but it is a great deal of work. Errecting panels and putting on trusses is quick and you think it's gonna be done quick but it's surprising how long it takes. I did mine while working full time, if I was in the postion to do so taking of 6 Month and focusing on it would of been cool but sadly not poss. A fixer upper is most logical. The worst thing building your own place is you know where all the little faults are. If someone else had made the issue it's ok but because I did the fault it's not nice. Quote Link to comment Share on other sites More sharing options...
jimmykx250 Posted April 16, 2014 Report Share Posted April 16, 2014 I know several people who built their own homes all of which worked in the trades and knew most of the guys on the job. Don't go the menards route instead talk to a reputable manufactured home dealer nearby. I have seen some really nice custom kit homes delivered and assembled on site way faster and cheaper than stick built homes but you will find even this route isn't that much cheaper. In the end you will be happier with the finished product. Of course you could always go the fixer upper route but that gets old however that's the route i went. 9 years later on my second home and im almost done getting it where i want it. WISH U LUCK!!!! Quote Link to comment Share on other sites More sharing options...
sjeff70 Posted April 16, 2014 Report Share Posted April 16, 2014 I sort of look at purchasing a house like I do a car. I'll never buy new, although a Bensonwood timberframe is tempting once retired. They don't make houses like they used to. Houses are erected as quickly as possible and not everyone building your home is skilled labor. If you do buy new shy away from subdivisions. Do your homework when hiring a builder. Buying an established house you can at least inspect it and back out if I want. I can see if there are cracks in the foundation because they built on it too quickly. In a new home I can't back out without a lawsuit. I've just seen and heard of too many cases, and my friend's father is a pro at suing builders for shoddy work. He was an electrician for a builder before he retired and knows exactly what he's doing (now a real estate investor). Quote Link to comment Share on other sites More sharing options...
pghmyn Posted April 16, 2014 Author Report Share Posted April 16, 2014 Thanks for the comments, guys. I'd like to be educated on the topic of home buying, or in this case...building, as much as I can. I want to make the best decision possible for myself, since this will be my first home. I'm 23 now, school will be done in 4 or less semesters - depending on available summer/winer classes. Seems like I've been in school a long time, and I have. Drawback of changing your declared major. Instead of being a teacher and teaching about math and science, I would rather be an engineer and use what I know in a practical application. You all have given good opinions on the subject, and I really appreciate that. Although home building might not be the best option for me right now, it is something I want to eventually do. Will I go with a kit home? Haven't made that decision in stone, yet. Will I buy a home in a subdivision? Absolutely not. I'm not hurting to have a home. I want one. I have the luxury of being picky and choosing my home carefully with no time constraint...except marriage. You might be wondering why I am jumping into this home buying process, and wanting to buy now. Three main reasons: 1) I am getting married in August of next year. That seems like a long time away, but I don't want to start looking 2 months before we get married. Once we are married, her debt becomes my debt. Her income is substantially lower than mine, and her debt from student loans are substantially higher than mine - because I have paid for a lot of school out of pocket. Combining our debt to income ratios would just kill the amount of loan I would be able to afford. 2) I live rent free at her parents house. Seems great, and I seem like I am an ungrateful ass. However, without airing out the dirty laundry for the Internet, just believe me that it is time to become independent from the situation. 3) Independence, that is just it. I want to be independent and start a life of my own. I want to buy a house while the housing market is favorable to the buyer. I want to have something that I can call my home. Childish and naive? Maybe to some, but it is what I want. Quote Link to comment Share on other sites More sharing options...
Guest Posted April 16, 2014 Report Share Posted April 16, 2014 You might be wondering why I am jumping into this home buying process, and wanting to buy now. Three main reasons: 1) I am getting married in August of next year. That seems like a long time away, but I don't want to start looking 2 months before we get married. Once we are married, her debt becomes my debt. Her income is substantially lower than mine, and her debt from student loans are substantially higher than mine - because I have paid for a lot of school out of pocket. Combining our debt to income ratios would just kill the amount of loan I would be able to afford. You are not quite right on this point. Even if you are married, you do not need to include her debts on the mortgage application... you only need to do this if the mortgage is going to be in both of your names. My wife and I have two houses. Our primary residence is deeded in both of our names and we are both on the mortgage. Our vacation house is in my name only and we used only my income and credit to get the mortgage. Wisconsin might be different but worth looking in to. Quote Link to comment Share on other sites More sharing options...
Llama Posted April 16, 2014 Report Share Posted April 16, 2014 In Wisconsin once you're married, his/her debts are shared. It's like the same person as far as debts are concerned. Quote Link to comment Share on other sites More sharing options...
MatthewCremona Posted April 16, 2014 Report Share Posted April 16, 2014 In Wisconsin once you're married, his/her debts are shared. It's like the same person as far as debts are concerned. http://en.wikipedia.org/wiki/Community_property 1 Quote Link to comment Share on other sites More sharing options...
Guest Posted April 16, 2014 Report Share Posted April 16, 2014 My understanding is that community property only applies to assets/debts acquired during marraige. So her debts do not become yours just because you get married. Also, in most community property states you can still apply for your own mortgage using your own credit score and credit history. I don't live there so don't know all the ins and outs... but if it is a real problem talk to your mortgage broker, or a few of them, and see what they say. Even if you buy now, before you get married, at some point you might want to refinance or move to another house, so you definitely want to know what you are getting in to. Or just move a few miles south to Illinois where you don't have to deal with all that crap Quote Link to comment Share on other sites More sharing options...
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