‘The Big Move’ is a MarketWatch column that looks at the ins and outs of housing, from navigating the search for new land to applying for a mortgage.
Do you have questions about buying or selling land? Do you want to know where to move next? Email Jacob Passy at TheBigMove@marketwatch.com.
I have lived on my earth for 40 years. I lived on 5.25 acres, and went to town to divide the land into subdivisions and its fitting.
I like where I live, but the earth is old and the children are gone. I am a 58 year old nurse. I pay $ 800 a month in property taxes plus my mortgage, which is together $ 2,500 a month.
I received a good offer to sell my land for $ 500,000 more than two years ago. I have another earth that I like and want to buy, so I want to sell. But the sale went down to my earth, so I had to walk away from the house that I was going to buy.
Now there are no houses for sale and I have not yet found anything that I like. So I had to rent until I found something. Why should I do that? Or wait until more earth comes on the market and sells when I find something? I probably won’t get as much but the houses won’t be as expensive as buying as well. Not all out?
Better save money, go on vacation and not have to work very much. But I also don’t want to get caught up in paying rent as big when I have the earth and aren’t happy because I rent g in a place I don’t want to live.
I like my earth where I live! But property taxes are too expensive, and I’m close to retiring and having to sell. I still owe money on my earth and will not pay it before retirement unless I move.
The cost of land ownership rises rapidly across the country, so you are not alone in feeling burdened.
New research from property data firm Attom Data Solutions finds that for the average household, having land is only affordable in 41% of counties nationally. In other words, in 59% of other counties in the county, the average family must spend more than a third of the earth’s salary for housing costs, including mortgage payments and property taxes.
Many are selling on the same ship as you. They’d sell on heart tags – if they could find the earth to buy. The diical earth inventory is on the lowest record, and that creates something of a vicious cycle. Land sellers are hesitant to put them on the market because there is almost no guarantee that they will have a place to live when the sale is completed.
Rent seems to be a one-way ticket for savings, but it’s far from certain. You don’t say where you live, but there’s a good possibility that it’s not all cheaper to rent. In fact, rents in suburban and rural areas have risen so much amid the pandemic that families have been looking for more space to live outside the big cities. A separate report from Attom Data Solutions found that owning three-bedroom land (at the average land price) is cheaper than renting three-bedroom land across nearly two-thirds of the country.
There are other disadvantages to renting, for sure. You don’t have control over your upfront housing costs, so even if you can afford to rent for the first year there is nothing to stop the landlord from jacking in when you are going to renew. And when you own the earth, you’re building valuable financial assets.
New research finds that owning land is still more affordable than renting nearly two -thirds of the United States, despite rising land prices.
With rent, whatever money you spend doesn’t come back to you. Even if you have a lower monthly cost, much depends on what you do with the savings. Ideally, you will be investing or planting for a rainy day, and not planting.
You can’t afford it, though. Given how mortgage rates are still down – even though they have risen in the last few weeks – I’d recommend seeing if financing it fits for you. But given how long you’ve been on your earth and the fact you’re still making mortgage payments, I would assume you’ve financed it recently.
You didn’t say what you did after you went to the local government to divide your land, but if it was sitting there, I would consider selling it. Since you have a mortgage, however, this will not be a direct process.
When land is divided, you must obtain written permission from the recipient or the credit service that caused the property, said Tom Trott, branch manager who owns Embrace Home Loans in Maryland.
“These requirements are in most mortgages and the standard language in the Fannie Mae and Freddie Mac trust deeds,” Trott said. To sell part of the property, you will need your lender’s permission. But if it’s hard to get, you still have a choice.
“Assuming they don’t get timely approval, then the other option is to carry out a repurchase of the remaining balance at the same time,” Trott said.
Should I buy a house at 60?
What age is too late to buy a house?
If you choose to sell, use your money wisely. Everyone wants to take a pleasant vacation and treat overnight in the city, especially after a long pandemic and stress. But the result of selling your land will be a lifeline for you.
Can a 70 year old get a 30 year mortgage?
Saving some of that money – not only is high property taxes not as much of a burden – but also to advance your next dream land payment.
How much do I need to retire if I own my home?
In my professional opinion, it is not too late to buy land as long as you are able to afford a mortgage. With the advancement of modern health, people are living longer. So even at the age of 58, having a 15 or sometimes 30 year mortgage is not a problem for many people.
Should I buy or rent at 60?
At what age should seniors downsize?
It’s never about age The reason you’re not too old to get a mortgage is illegal for those who care to differentiate based on age. Under the Equal Opportunity Act, age is one of several factors that lenders cannot work on to make decisions about mortgages or other loans.
Why you should never buy a condo?
Ah, the key question. A rule of thumb is that you will need 70% of your pre-retirement annual salary to live comfortably. That can be sufficient if you’ve paid your mortgage and are in good health when the office smiles goodbye. But if you are planning to build the earth of your dreams, travel around the world, or pursue a Ph.D.
What is the best age of house to buy?
Landowners ages 65 to 74 are down selling a home for $ 270,000 and buying one for $ 250,000, on average. The value of the earth has risen 8.7 percent in the past year and is expected to rise 6.5 percent again in the next 12 months.
Is it better to rent or buy for seniors?
Is 65 too old to buy a house?
Less Space and Flexibility. One of the reasons for not buying a condo is that you have less space and flexibility in how to use your place. Some condos offer to rent additional storage or possibly a basement, but you will likely have a smaller and more compact living environment than the one you work on earth.
Is 2020 a good year to sell a house?
If you’re such a regular land buyer, you thought considering the earth is around 20 years old, according to the National Association of Realtors. A 20 -year -old home that has been properly maintained can be a solid investment.
Does my rent get paid when I retire?
Financing the earth when you retire Although there is no maximum age for applying for a mortgage, you thought it more tough to qualify for a particular mortgage product. Discrimination based on age is illegal because of the Equal Credit Opportunity Act. However, when borrowing a loan guarantee, they need to confirm its risk.
Should a 55 year old buy a house?
Can I get a 30 year mortgage at age 55?
If you are selling potential land and you ask “Is it a good time to sell land?”, There is no easy answer. Spring is considered the best time to sell homes in general, but the impact of the coronavirus on the United States housing market was real. Summer 2020 is your best chance.
Is it OK to buy 50 year old house?
If you rent your land, you will still have to pay rent when you retire. Your fuel bill. Gas and electricity bills can be bigger if you’re more on earth and when you’re older.