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I guess i wasn't clear on my entire statement. Buy now before the prices go up may not relate to all properties. I guess what i'm trying to say is the best pieces of land go quick and the better the view, the more expensive it gets as those become scarce to find. I've been searching for over a year now with 3 trips to TN and finally found what i wanted at an affordable rate for me.
I'm not looking to buy then sell it for a profit. I'm stuck in FL for 5 more years only because of my daughter's schooling situation being a special needs student. these next 5 years will help us get a jump on paying the property off and preparing our building plans so for me, this works, for others it might not.
We happen to like the Newport area. We've been there 3 times and talked to people who live there and we won't have to worry about the hour drive to Knoxville as we found a better place for work closer.
Well, okay, I gleaned from your posts that you were scammed into something. If you've been there three times then I am sure you know what is going on. Anyway, at the way they are overbuilding Knoxville, it will only take you 30 minutes to get there!
I guess i wasn't clear on my entire statement. Buy now before the prices go up may not relate to all properties. I guess what i'm trying to say is the best pieces of land go quick and the better the view, the more expensive it gets as those become scarce to find. I've been searching for over a year now with 3 trips to TN and finally found what i wanted at an affordable rate for me.
I'm not looking to buy then sell it for a profit. I'm stuck in FL for 5 more years only because of my daughter's schooling situation being a special needs student. these next 5 years will help us get a jump on paying the property off and preparing our building plans so for me, this works, for others it might not.
We happen to like the Newport area. We've been there 3 times and talked to people who live there and we won't have to worry about the hour drive to Knoxville as we found a better place for work closer.
Any possibility that the local schools would have a similar program for your daughter? Only reason that I ask is that sooner may be better than later for selling your existing home. Besides I like sooner rather than later in doing things anyway. Now if I can just get my lazy bones in motion and do what I'm preaching and get myself down to TN and get on with it, I'd be doing better.
I spoke with my broker friend today, there are some weird things going on in mortgage land currently. I know my buyer tried to do a neg am loan, denied.....lenders are not doing those here now. Then she tried a 100% loan with some sort of interest only........denied lenders are stopping those as well. Now my buyer is trying for a 100% 80/20 loan. I'm hoping that it goes thru this time. I can't leave here if I can't close on this house that I live in and that she's buying.
That's scary, a ready buyer with good credit, a willing seller, that has made price concessions to move the house, but the bank is locking the credit box and making it difficult (soon to be impossible?) to get a loan. MBmouse says it hasn't hit TN yet, but these are national lenders that I'm dealing with here, so I can't see that this crunch can't wash upon TN shores eventually.
A realtor friend in NC said that homes are selling like hotcakes still in Asheville, that's good, I hope that it continues for the sake of those that want to buy and those that need to sell.
Any possibility that the local schools would have a similar program for your daughter? Only reason that I ask is that sooner may be better than later for selling your existing home. Besides I like sooner rather than later in doing things anyway.
Tony in WA
Well i wish we could move now but it's too much of a risk to take. My daughter is totally blind so she really has special needs for school. The school she's in now re-evaluated the safety of the entire school to make sure it was safe for her to move about on her own. they even changed all the doors so they would not swing open into the hallways and possible hit her. I couldn't believe they went that far but they did. We had a bad time in elementary school as that school didn't even seem interested in her needs and to have the risk of doing that again scares the daylights out of me. Then it took over a year to get her school books in braille and that's not because the school was slow but the place in the Northeast that types them up was so slow. She had an aid for a long time who would everyday type her book pages in braille for her. Also to find a teacher of the blind in such a rural state i think would be very difficult. It was difficult here in FL to find one local and she travels well over an hour. It's just too much of a risk not knowing what she'll end up with. I can't even get the schools in TN to answer my calls or emails as it is. But on the flip side, we still like it in FL so 5 more years won't be so bad at all.
Well i wish we could move now but it's too much of a risk to take. My daughter is totally blind so she really has special needs for school. The school she's in now re-evaluated the safety of the entire school to make sure it was safe for her to move about on her own. they even changed all the doors so they would not swing open into the hallways and possible hit her. I couldn't believe they went that far but they did. We had a bad time in elementary school as that school didn't even seem interested in her needs and to have the risk of doing that again scares the daylights out of me. Then it took over a year to get her school books in braille and that's not because the school was slow but the place in the Northeast that types them up was so slow. She had an aid for a long time who would everyday type her book pages in braille for her. Also to find a teacher of the blind in such a rural state i think would be very difficult. It was difficult here in FL to find one local and she travels well over an hour. It's just too much of a risk not knowing what she'll end up with. I can't even get the schools in TN to answer my calls or emails as it is. But on the flip side, we still like it in FL so 5 more years won't be so bad at all.
Sounds like you have very good reasons to stay, awesome that the school bent over backwards to help, that's a good thing.
Hopefully 5 years from now your home that you will sell will be worth much more than it is now and hopefully the politicians don't change the capital gains tax rule that is currently in place and that favors the home seller.
Alternatively, depending on your mindset, an argument could be made to sell the current home, taking the equity paying cash for the land in TN and putting the rest in a bank at 5% CD. Meanwhile renting a similar home in FL for less rent than the corresponding mortgage?
Biggest pro to that idea is no interest payments on the land and a guaranteed 5% on your money until ready to build and the biggest bonus, remove yourself from what may be a long downward trend in FL real estate.
Just a thought, no matter what you do, I hope that you do well.
Daniellefort,
I will put money on the bet that the schools is the area you are looking at will NOT do much if any modifications, but I bet they would complain about even the effort, yet that is just my opinion. As a fellow mom, I applaud you, if you have such a great school there and your daughter is benefiting so much from it, I agree with you, stick it out as long as it takes!
Tony, I also am talking about National Lenders, many, many, many of them actually. Underwriters do take location and market conditions where the property is located into consideration. Neg Am loans.....Yuck! Personally don't do them even though I can, only about 1% of the situations benefit from those.
Meanwhile renting a similar home in FL for less rent than the corresponding mortgage?
Tony
Good thought but we can't get our mortgage lower than it is now. Just over 4% can't be beat. Smaller home? Can't do already in a 990 sq/ft home. When we do sell, it will pay for the rest of the home, the new land in TN and then still have some extra to begin new building. We bought a fixer upper 7 years ago for $40,000 just across the lake and it's just about paid for and of course fixed up and worth more now. I guess we're just one of the fortuneate ones who don't carry a huge mortgage payment and are in debt up to our eyeballs trying to survive.
Good thought but we can't get our mortgage lower than it is now. Just over 4% can't be beat. Smaller home? Can't do already in a 990 sq/ft home. When we do sell, it will pay for the rest of the home, the new land in TN and then still have some extra to begin new building. We bought a fixer upper 7 years ago for $40,000 just across the lake and it's just about paid for and of course fixed up and worth more now. I guess we're just one of the fortuneate ones who don't carry a huge mortgage payment and are in debt up to our eyeballs trying to survive.
Wow, $40,000 and almost paid off. That changes things, why sell at all? Heck why move at all? If you are living a paid for life, that's something that is very special in todays day and age.
If you wanted, you could keep that house as a rental, and have cash flow until your dying days. But whatever you get when you sell will be money in your pocket to do with what you will.
Nice position to be in. How much would it cost to rent a similar place?
Sounds like you are in good shape, I don't know what the house would sell for today, for example $180,000.....then you made $140,000 for your next project. But if the price drops down to $140,000 later due to a declining market then you only made $100,000. But no matter what you will have money in your pocket.
Wow, $40,000 and almost paid off. That changes things, why sell at all? Heck why move at all? If you are living a paid for life, that's something that is very special in todays day and age.
If you wanted, you could keep that house as a rental, and have cash flow until your dying days. But whatever you get when you sell will be money in your pocket to do with what you will.
Nice position to be in. How much would it cost to rent a similar place?
Sounds like you are in good shape, I don't know what the house would sell for today, for example $180,000.....then you made $140,000 for your next project. But if the price drops down to $140,000 later due to a declining market then you only made $100,000. But no matter what you will have money in your pocket.
Good job, best of luck in your TN land purchase.
Tony
(I'm jealous I want to be debt free too)
We thought about keeping it and renting it out but being so far away and not having anyone around who can keep an eye on the place is something to consider. My in-laws are down here but probably will make the move shortly after us. They camp in TN 3 months during the summmer. I think they are waiting on us to make the first move though. The house across from me is being rented for $750 a month for a small 3 bedroom with a fenced in yard. It just sold for $139,000 last week. It's a cute little home. not sure the sq/footage though. The one across the street from me also is rented for $1500 a month but that's on the lake front side. I'm in between those two homes and at least get the lake view. Why move?? well I miss the mountains and having 4 season change. I was in N.H. my first 18 years of life and i miss the season changes but it's toooo cold to go back there though my family is all still there. Not only that buy my husband is working outside as an auto tech and it's gets quite miserable for him on those 90+ degree humid days and there's a lot of them. To do anything outside is miserable for that matter whether it be working or playing. Just ready for a change while we're still young and in the position to be able to do it.
According to the news report that is linked above TN has 2 markets in the top 10 of most vunerable to the Subprime market. Those two places are Memphis and Jackson, both over 20% subprime loans, wow.
I didn't think TN fell into that subprime trap. Hopefully those with the subprime loans will be able to refi into better terms, otherwise there may be a few bargains coming online soon, but that means property values would be coming down. Interesting, those places are in west TN, I saw a stat for E. TN the other day that showed 14% subprime, don't know if that was accurate or not.
Take care.
Tony
(doom and gloom.......... ;-)
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I want to be debt free too)
