Realistic budget for land purchase/custom home? (Austin, Round Rock: real estate, mortgage broker)

[MamaE]

My husband and I just moved to Round Rock about a month ago from So Cal.

We've been trying to decide where we might want to buy a home. We've been thinking about possibly buying land and building a custom home on it. I've looked at some builder websites and most of what they offer are fancy elaborate custom homes. That's not really what I am looking for.

I am looking for a piece of land. It really doesn't matter where as long as it is with in driving/commuting distance to Austin/Round Rock. We would like to have some chickens, bees, a garden and maybe a goat or two. Eventually as we learn about homesteading some more livestock. I'd like a simple, cozy home. Maybe something like a 1920s farmhouse. Everything I've seen online has been giant 3,000sqft custom homes made of granite and stone. When I look at them I *feel* cold.

We were thinking of purchasing land soon and hanging onto it until we can get a new-construction loan. We are well aware of the preparations that need to be done to land to build, so I don't need any advice on that. I used to work in real estate in CA. I will likely consult an experienced RE agent when we start looking.

In CA in the area we lived if you wanted a pice of land out in the desert you're looking at paying $90k. If you want something nice or closer to town, it could range anywhere from $100-$300K depending on lot size and location. Well, thats how it was 5 years ago when I was working in the RE market before it tanked out there.

I've been reading that we need to come up with a realistic budget. Our mortgage on our current home was $236 in a ticky-tack house in a subdivision.

So, I am thinking maybe $300K would be our budget for land AND a new construction loan. This home would be our forever home and our dream home. We would probably buy land first even if we have to sit on it for 5 -8 years until we can sell our CA home to help finance a new const. loan.

I'm just wondering if this is a realistic budget. How low can we go?

[Austin97]

Originally Posted by MamaE

My husband and I just moved to Round Rock about a month ago from So Cal.

We've been trying to decide where we might want to buy a home. We've been thinking about possibly buying land and building a custom home on it. I've looked at some builder websites and most of what they offer are fancy elaborate custom homes. That's not really what I am looking for.

I am looking for a piece of land. It really doesn't matter where as long as it is with in driving/commuting distance to Austin/Round Rock. We would like to have some chickens, bees, a garden and maybe a goat or two. Eventually as we learn about homesteading some more livestock. I'd like a simple, cozy home. Maybe something like a 1920s farmhouse. Everything I've seen online has been giant 3,000sqft custom homes made of granite and stone. When I look at them I *feel* cold.

We were thinking of purchasing land soon and hanging onto it until we can get a new-construction loan. We are well aware of the preparations that need to be done to land to build, so I don't need any advice on that. I used to work in real estate in CA. I will likely consult an experienced RE agent when we start looking.

In CA in the area we lived if you wanted a pice of land out in the desert you're looking at paying $90k. If you want something nice or closer to town, it could range anywhere from $100-$300K depending on lot size and location. Well, thats how it was 5 years ago when I was working in the RE market before it tanked out there.

I've been reading that we need to come up with a realistic budget. Our mortgage on our current home was $236 in a ticky-tack house in a subdivision.

So, I am thinking maybe $300K would be our budget for land AND a new construction loan. This home would be our forever home and our dream home. We would probably buy land first even if we have to sit on it for 5 -8 years until we can sell our CA home to help finance a new const. loan.

I'm just wondering if this is a realistic budget. How low can we go?

I live pretty close in on a small lot (.2 acres) and if the lot were to sell on the open market it would probably be around 150K. Further out (cedar park/leander) they tend not to sell lots this small in subdivisions. I did some brief searches and found a number of lots in town for 85K some are actually quite large.

Crystal falls has a # of lots under 75K that are around 2 acres

Most of the builders have a build on your lot program (i.e. david weekly) where you can pick from a list of a few thousand floor plans.

[TheyCallMeDerek]

To truely discuss a realistic budget I'd suggest speaking with a mortgage professional, maybe one who handles land aquisition. The requirements to purchase land with no improvements are a bit tougher. More required down etc.

[20yrsinBranson]

Originally Posted by MamaE

My husband and I just moved to Round Rock about a month ago from So Cal.

We've been trying to decide where we might want to buy a home. We've been thinking about possibly buying land and building a custom home on it. I've looked at some builder websites and most of what they offer are fancy elaborate custom homes. That's not really what I am looking for.

I am looking for a piece of land. It really doesn't matter where as long as it is with in driving/commuting distance to Austin/Round Rock. We would like to have some chickens, bees, a garden and maybe a goat or two. Eventually as we learn about homesteading some more livestock. I'd like a simple, cozy home. Maybe something like a 1920s farmhouse. Everything I've seen online has been giant 3,000sqft custom homes made of granite and stone. When I look at them I *feel* cold.

We were thinking of purchasing land soon and hanging onto it until we can get a new-construction loan. We are well aware of the preparations that need to be done to land to build, so I don't need any advice on that. I used to work in real estate in CA. I will likely consult an experienced RE agent when we start looking.

In CA in the area we lived if you wanted a pice of land out in the desert you're looking at paying $90k. If you want something nice or closer to town, it could range anywhere from $100-$300K depending on lot size and location. Well, thats how it was 5 years ago when I was working in the RE market before it tanked out there.

I've been reading that we need to come up with a realistic budget. Our mortgage on our current home was $236 in a ticky-tack house in a subdivision.

So, I am thinking maybe $300K would be our budget for land AND a new construction loan. This home would be our forever home and our dream home. We would probably buy land first even if we have to sit on it for 5 -8 years until we can sell our CA home to help finance a new const. loan.

I'm just wondering if this is a realistic budget. How low can we go?

If you can't find a builder who can locate the appropriate building plans go here House Plans

They also have plans for every kind of barn and outbuilding you could possibly imagine... here Miscellaneous PlansMiscellaneous Plans

and here Poultry Plans

PS. Be sure you check with the COUNTY planning and zoning department about any rules and restrictions on livestock or *anything* before you decide on a piece of property. If I had known that we had to install a septic tank I would have moved to the county next door that does not have this requirement.

20yrsinBranson

[MamaE]

Well, I was more looking on some more broader advice here.

For instance, if I had a million dollars to budget, I could say I could afford a 20 acre lot and a 3,000sqft house.

I just don't want to go in to speak with a mortgage professional for a new const. loan right now... since we don't plan on building anything until we sell our home in CA.

I don't need info on improvements, or zoning restrictions. I'm not that far into my thought process yet (i'm well aware of all the thinks I need to look into before buying/building).

If I had a $200K budget for land and new construction loan, and I was asked this same question by someone who wanted to buy land and build in say, Orange County CA, I would tell that person to keep on dreaming and that there is no way he/she could afford any sizable land for that price, let alone a new const. loan.

I'd just like to know if this is a realistic idea before I go wasting my time and that of a mortgage broker.

[MamaE]

Oh and we'd like somewhere between 5-10 acres, ideally but will settle for 2-5.

[MamaE]

Originally Posted by 20yrsinBranson

If you can't find a builder who can locate the appropriate building plans go here House Plans

They also have plans for every kind of barn and outbuilding you could possibly imagine... here Miscellaneous PlansMiscellaneous Plans

and here Poultry Plans

PS. Be sure you check with the COUNTY planning and zoning department about any rules and restrictions on livestock or *anything* before you decide on a piece of property. If I had known that we had to install a septic tank I would have moved to the county next door that does not have this requirement.

20yrsinBranson

These are fantastic links; thank you!

[centralaustinite]

I think that you can find exactly what you want! Without having to build it yourself. Look around Elgin, McDade, Jarrel, Salado, Bastrop, Liberty Hill. You could get a nice, small house and 2-10 acres of land for under $300K. There are existing houses and parcels of land that seem to meet your requirements.

[orbius]

Also if what you're going to build is going to be a legitimate working farm realize that an Ag Exemption is worth its weight in gold. It could easily save you $8-$10k annually on taxes. It might be worth it to pay extra buy a piece of land with an existing ag exemption and build on that. I'm not sure though thats definitely something to consider in the whole process however, probably worth consulting with a lawyer who knows all the ins and outs of the process.

[Austin97]

Originally Posted by MamaE

Oh and we'd like somewhere between 5-10 acres, ideally but will settle for 2-5.

you can go to austinhomelistings.com and do a map based search on 5-10 acres below 300K

This turns up a ton of properties, not in the central core, but in the somewhat outlying areas

For example there is a 10 acre place with 3br 2ba, 2100 sq ft for 235K on FM 969, just outside of 130

That puts it around 10 miles from downtown austin (13700 FM 969). The interesting thing is FM 969 is a pretty major road inside of 130, so eventually this could be a good commercial property.

There is one in pflugerville at 1501 panther loop for 295k with 5 acres that has a nice look farmhouse style house at 2400 sq ft

There are a couple in leander for 250K with about 5 acres off 183. One is 1700 sq ft the other is 2400 sq ft.

So there are some options for ones with houses.

In the 2-5 acre range there are a lot of choices