| Build now or later- what are the advantages |
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foodeefish
Contributing Member
Cash: $ 6.00
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Joined: 07 Feb 2004
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| Build now or later- what are the advantages |
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I have just purchased the land I will build my retirement home on and we have eight years left on our home mortgage (4.75% interest). My goal is to retire in 10 years hopefully.
Would you wait till you pay off this first mortgage before you would start building your retirement home.
What would be the advantages of building prior to retirement? We do not want to build another home and rent it out.
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Wed Sep 14, 2005 1:53 am |
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MattL
Senior Member
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I would wait until after you retire. You will have more time to do it right with much less stress.
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Wed Sep 14, 2005 5:35 pm |
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BlankenshipFP
Money Talk Advisor
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Location: Illinois
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It looks like, from your post, that you've answered your own question. If you don't want to build a house and rent it out (or presumably leave it vacant), then you should wait until you're ready to retire to build the house. It appears that your current mortgage is timed pretty well for you to undertake this activity just as soon as the current loan is paid off.
... or did I miss something in your question?
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
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Wed Sep 14, 2005 6:52 pm |
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efflandt
Senior Member
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Location: Elgin, IL USA
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I do not see any advantage of building now. For one thing property taxes on a home would be higher than for an empty lot. Insurance is higher if a home is unoccupied. A loan is higher if not owner occupied.
And you already mentioned you do not want to rent it out (some people who rented out their future retirement homes in my grandparent's neighborhood wish they hadn't).
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Thu Sep 15, 2005 2:22 am |
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