To buy or not to buy - that is the start of my question
November 24, 2010 6:44 AM Subscribe
Should I buy land with a tear-down house given my special snowflake details?
posted by anonymous to work & money (14 answers total)
My husband and I live on a .25 acre lot in a coastal neighborhood in Maine. A .5 acre lot directly adjacent to ours (through our backyard) came up for sale last week after over 5 years of vacancy since the owner's death. We had discussed wanting to own the property in an off-hand way for the last couple of years and had taken advantage of its empty state to cut through with our dogs when returning from walks around the block. When it went up for sale, we called the realtor immediately, took a tour, and made an offer. There were several other interested parties. Our offer has been accepted and we are currently in the due diligence phase.
There is a garage with a semi-finished apartment and a house on this property. The house is absolutely, unequivocally a tear-down. The garage is structurally sound and worth keeping (at least to us) for the time being. We would likely wait a few years and then build a small house to either rent or sell, depending on the market.
The difficulty I'm having is in how we are paying for this property. My father passed away a few months ago, and we'd be using a large chunk of the inheritance I received to purchase the land. Because the house is a tear-down, the price was determined based on the value of the land and financing is not a viable option. We can pay cash, because we have the cash from the inheritance.
It is very likely a no-lose scenario - even if we just tore the house down and sat on the land, we'd likely get our money back. But I am having a difficult time parting with the inheritance money, for purely emotional reasons.
Can some savvy Me-Fites share stories of similar purchases that went well? Or address my emotional response without attacking me too much for it? I am basically looking for arguments for or against paying cash for what is essentially just land (tear-down costs are minimal) in the current market. We don't have any other major debt (other than my student loans) and don't have any immediate need for the money otherwise.