My family and I have been trying to find land to build on this year. Unfortunately for us, this year is NOT the best year to be investing in homes and land. Manufactured homes have increases many thousands of dollars since we first looked in March! Local options are close to the 200’s JUST for the house, ouch! Here are some considerations in trying to save money when building or buying a home this year.
Lower The Budget
Life is unpredictable. This is the main reason very successful business people say you need to have seven streams of income. If you lose your job, you will not be without income. Unfortunately, many people do not have this many streams, in fact, many rely on two incomes. If this is you, consider a low budget for housing. I know this makes things more difficult in this current market, but consider what would happen if you lost your current job. My parents have always lived off the idea of having a mortgage that can be paid by a minimum wage job. They have had successful positions, but if they were to lose those positions they would be able to go to any fast food place and continue to work and pay the bills. Housing is incredibly important, this is something you may wish to be on the safe side.
New Construction
When considering how to get yourself into a new home, be creative in how you might accomplish this. Many people dream of being able to have a brand new home. There are many new homes being built in our area. Some from the 300’s all the way up to 500’s. This is still a lot of money for many families. Consider keeping your eye out for foreclosure options and pre-owned homes. There are down sides to having a pre-owned home, but the price will often be worth it! Our first home was a foreclosure that had all the cabinets and fixtures still in the house, it was minimal to create a lovely home with it.
Be Creative
We have considered living on land with an RV until the housing market crashes. If you consider this option, make sure of your county regulations. You can also consider creating a small home using sheds! The shed to home option has become widely popular. Make sure you have researched this option before diving in as well. There are cons to having a shed become your home, some you may not wish to deal with. This option also may not come out to be a lot cheaper, BUT it may allow the option to build over the course of time. Lastly, consider a more rural location for your house. Back in June I wrote this article about American choosing a more rural life in the last year, this would be a benefit for keeping things cheaper!
Conclusion
Are you looking for a home this year? The price of homes is continuing to climb. If you choose to buy this year, or even in the coming years, it is important to consider long term life expenses and how you would support those if your work shifts. Think outside the box in order to fit your needs. If you can imagine it, you can make it happen. Don’t be in a rush to get into a house. Patience is key in this market.
I’m not sure I agree completely with your conclusion. As a renter, it is extremely frustrating for me to see mortgages for bigger and better houses and apartments than mine be less than what I’m paying in rent. I do understand the idea of negative equity and that a massive crash could see you end up with an asset that is worth less than the debt you have on it, but what about the money I’m losing to rent. Over a 5 year lease I’ll be paying close to $100,000 in rent, shouldn’t that be taken into consideration? Sure, nobody wants to lose their house if their situation changes, but I’ll still lose the house I’m renting if my situation changes.
I can understand your frustrations. In fact, that frustration is one of the reasons my husband and I bought our first house back in 2011. I can look back and say that wasn’t necessarily the smartest decision, though we did enjoy the home while we had it.
Buying or renting is not a one size fits all situation. Do you have the funds to fix the roof or the water heater or replace the roof? If someone is not really great at saving they may find themselves in a big heap of debt because a large unexpected issue happened. It is part of home ownership not everyone is willing or able to take care of.
I simply desire folks to consider their options and make the right decision for their needs. Thinking outside the box will often give you opportunities you wouldn’t have thought possible. Good luck on your home journey, I hope you find satisfaction in your home choice in the future.
Hello,
My Brother is trying to buy a new house since last year but still did not buy one. Hopefully, maybe in this year or next year, he will buy. by the way, thank you for this great post.
Regards,
Shakir Bawani
Shakir,
Good luck to your brother on his search for a home. It is not for the faint of heart, especially when prices keep increasing faster than your budget!
as someone who once worked in a property management I can say that I agree with everything you mentioned above
it’s not easy to construct a new home on a lower budget.
Thanks for your reply. Yes, it certainly can be difficult to do that. There are ways to be creative if you’re willing to put in sweat equity.
Appreciate your thoughts here! Lowering the budget is something that’s not fun to do, but as you mention, can help you be on the safe side when you’re preparing for life’s many possibilities. If only every “favorite” home was RIGHT within budget!