
03-17-2013, 09:13 AM
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Location: Great State of Texas
86,093 posts, read 73,645,352 times
Reputation: 27598
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Quote:
Originally Posted by Cinebar
Just a quick update -
Things continue to move along for my son and his girlfriend, although the closing date will likely be in April (instead of this month) due to the USDA running about twenty-five days behind schedule.
The inspections have been done, the well is fine (300 feet deep, 12 gpm), the septic has been pumped (at seller's expense), a new tax assessment has been done, and my son and his girlfriend are spending today lining up the insurance.
Does anyone here know if it would be advantageous for them to split the property into separate tax lots - one for the house and whatever minimal acreage would be required and another for just bare acreage? I'm a little concerned because the new assessment came in at around $8,000 more than what they are paying for the place and I would like to see if there is some way to keep those taxes down if possible. I don't even know if maybe it would cost more to have the property divided than what it would save them in taxes.
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A lot of that depends on the state laws on Ag use and what they may want to do down the road.
If they stay all ag and later on want a home equity loan, sometimes banks won't allow that on ag land but if the home and, let's say one acre, were not ag then banks would loan. But that home and acre would be taxed higher because it's not ag exempt. Then again there's the Farm Credit Bureau that does loan on ag exempt land so you have other options.
There's pros and cons about this as well as state specifics.
I would suggest he talk to a RE attorney and other farmers in the area at great length about this so he understands it and can make an informed decision on what to do.
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03-17-2013, 09:17 AM
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16,038 posts, read 20,205,691 times
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Awesome!!! What fun. If you are like me it will be fun to go help out and garden. Something to be proud of for sure. You did a good job Mom & Dad
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03-17-2013, 11:21 AM
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Location: Wisconsin
17,846 posts, read 18,177,469 times
Reputation: 44054
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Quote:
Originally Posted by HappyTexan
A lot of that depends on the state laws on Ag use and what they may want to do down the road.
If they stay all ag and later on want a home equity loan, sometimes banks won't allow that on ag land but if the home and, let's say one acre, were not ag then banks would loan. But that home and acre would be taxed higher because it's not ag exempt. Then again there's the Farm Credit Bureau that does loan on ag exempt land so you have other options.
There's pros and cons about this as well as state specifics.
I would suggest he talk to a RE attorney and other farmers in the area at great length about this so he understands it and can make an informed decision on what to do.
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Excellent points.
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04-12-2013, 04:48 PM
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Location: The Cascade Foothills
10,953 posts, read 8,839,773 times
Reputation: 6461
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They close next week (Thursday) and will get the keys the following Monday.
There were some concerns because my son's girlfriend switched jobs in the middle of the process and it was thought that they would have to start all over and they would lost their spot with USDA.
They would have still qualified but it would have given the sellers an "out" if they had wanted to take it - no way of knowing if they would have taken it, though.
Anyway, they didn't have to start over and so they didn't lose their spot and they will be moving in in a week and a half (actually less).
I had been a little bit worried about them biting off a little more than they could chew comfortably with the payment and the property taxes (since the tax appraisal came in quite a bit more than their purchase price) but the girlfriend went from working two part time jobs (12 hours a week at a library and 20-25 hours a week cashiering at Home Depot) to working one great job, with great benefits, a job that she actually went to school for and that she is finally putting her degree to work for, making almost $3.00 an hour more than my son; and she will be getting a $3.00 an hour raise in six months.
I swear - it's like everything just keeps falling in place for these kids.
I'm so excited for them! 
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04-12-2013, 05:22 PM
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Location: Oregon
1,379 posts, read 2,722,719 times
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That's wonderful!! Good luck to all of you!
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04-12-2013, 05:25 PM
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Location: The Cascade Foothills
10,953 posts, read 8,839,773 times
Reputation: 6461
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Quote:
Originally Posted by kadylady
That's wonderful!! Good luck to all of you!
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Thank you!
They're anxious to get started on their garden and they should still have plenty of time to get a good start on it for this year, and expand next year.
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04-12-2013, 10:29 PM
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Location: Wisconsin
17,846 posts, read 18,177,469 times
Reputation: 44054
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Wow! Sounds great.
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