Quote:
Originally Posted by Aj_TN
That was one of the places I looked. It seems really nice and what I am looking for. Electric, rural water, and fiber is already installed to every lot and I believe septic is already there also. Its about 30 minutes to the nearest hospital and Rapid City is about an hour and ten minutes away. They have all the major shopping stores and necessities. I need to say that I am currently 43 years old and can retire from my job on 4 years with full pension. If I stay and extra 3 years I can walk away with an additional lump sum and only be 52. I am looking for something to have the land paid off by then and all I have to do is build the house. This particular property the taxes were $1900 last year. Trying to decide if it is worth me paying taxes on land I wont be building on for at least 5 year. Thanks for all your advice. Wish I could build a house for $65 a sq ft.
|
I left employment at age 49, so similar in that regard. (no pension, no HC for me, So I had to 'wing-it' for the last 16 yrs (now Medicare eligible).
This location and amenities looks inviting and likely very nice. I don't like the gravel road (so it appears). Winter on the prairie can be brutal and beautiful too (moonlit nights on icy, windswept snow).
1) What are taxes on the COMPLETED neighbor homes @$1m
2)Septic may be approved for system, but is unlikely installed, as that depends on your home location and elevation.
3)Do covenants allow you to rent out home / apartment for next 7 yrs?
4)Many things can change during that time
5)Having 'distant' rentals is +/-. Great to go visit, but a pain to handle emergencies (Freeze / weather damage).
30 min to medical and 1 hr to full shopping is too far IMHO (Marginally OK until age 80, IF you can drive that distance everyday if needed). I lived 1 hr out of Denver for 30 yrs and that was 1/ month trip. (if reluctantly required). Of course rural delivery is great for shopping, but tough for medical treatments.
Consider drawing a 20 min radius from Spearfish and saturate the available property options. (Building from scratch will take 1 yr out of your life). I have done over 40 properties and used a realtor TWICE. I prefer to find my properties BEFORE they are listed for sale. I find my preferred area and get details on all desired properties, then whittle down an equation as to which ones I solicit to buy. I have about a 60% acceptance rate.
Building cheap can be tough if too rural. Thus I like to first build a shop, then fill it with treasures (future home fixtures / cabinets / windows bought at bargain prices), then I design home (myself) around my available supplies and terrain. Each of my kids did that during grades 8-10 as home school projects. Their homes turned out very nice for <$50 / sf. More sustainable, zero-energy cabins (~1500sf), rather than a sprawling 5000sf 'retirement' castle. Each on exquisite view properties within a Nationally Protected Scenic Area. 10 min to shopping, 20 min to international airport or major medical. No income tax state, next door to a no sales tax state.
Options are out there, so explore and consider all scenarios.
If you have a desired spot. I would buy a property with a livable MH and beautiful acreage, and rent it out + build a shop (with apartment and RV connections) while you finish your 7 yr sentence at work. If something changes (health, abilities, marriage, adult kids, elder care, ... you can sell / trade your "Income Property' and proceed with Plan B or C or Z. Alternatively... buy a large enough property to split up and build something fast and cheap (MH or shop) to rent out FT and develop your ideal property / homestead at your own pace during the next 7 yrs. A friend did the $500k capital gains thing every 2 yrs (9x) on a 20 acre place he split into 2's. Built shop with apartment on his final piece (moved his stuff there), then he built 9 homes (1 every 24 months) for the $500k tax free gain EACH, and finally built #10 on the lot with the shop.
I am one who would not want $100k sitting around 7 yrs as a 'non-performing asset'. Each of us are different in our perspective of 'working capital' (I make plenty of mistakes).
My personal home has never been considered an asset, but instead a liability. (even tho current home is worth 10x my cost basis, it is a very poor performing asset. (should it be an asset, which it is not to me))
If you buy a large piece that can eventually be split and sold off, it might be an asset and a way to keep engaged in the local RE market. (Inflation hedge for desired retirement location).
Having grown up near Estes Park, CO, I am very familiar with people who visit on holidays and desire to relocate and stay (for retirement). sometimes that works out, often it does not. My TX location is quite the same. Retiree haven. Place where many retirees vacationed / went to camp as a child. Many come back for retirement, many end up spending a bundle on a new home, only to have to sell and leave for various reasons. (Often health, mobility, eldercare, or they don't like the year round climate. Spouse misses family...) I have bought several bargain homes due to this 'mandatory change'.
Good luck, I trust something very ideal will work out for your situation.
*Hint: retire as early as makes sense... my dad got disabled at age 49 (for next 33 yrs), and several friends have died just [prior to retirement. Others wait until age 70+ and burn out (physically) while trying to create their heaven on earth. Listen to spouse and friends for a 'reality check'.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
