Buying Another Investment Property?

October 14, 2009 at 3:30 AM 5 comments

Once again my husband and I are contemplating the purchase of property in North Carolina. We already own one home on the Outer Banks, but with prices at five year lows and interest rates in the 4-5% range it’s hard to pass by properties without at least considering a purchase.

At this point in time I’m not certain that a bank would approve financing. I placed a call to our current lender to get the skinny on the process of buying a vacant lot, (we’ve never done that before), and the requirements for acquiring a loan on a property without a house. Unfortunately, the loan officer didn’t call me back this afternoon, so I decided to Google instead.

Strangely enough I didn’t find a ton of information on the topic. I guess most people purchase homes, not vacant lots. I did discover that the loan term cannot be longer than 15 years and that a 30% down payment will be required.

Our banks pre-approval website didn’t support lot purchases, so I couldn’t find out whether or not we would even qualify for a loan. I plan to call our lender back tomorrow to see if they can run a query over the phone.

Of course if we can’t qualify for a loan than our quest stops here, but if we do qualify my husband and I will need to rake over the numbers to see if we really want to proceed.

Ever time we’ve purchased a property I’ve been both unbelievably excited and slightly terrified all at the same time. There is so much excitement in buying a piece of property, but so much trepidation in terms of making the monthly mortgage payments while still paying for all of life’s necessities.

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Planning Our Winter Vacation Failed: We Won’t be Purchasing a Vacant Lot After All

5 Comments Add your own

  • 1. Heather  |  October 14, 2009 at 11:22 AM

    We purchased a lot last year and were required to put 50% down (and we both have excellent credit ratings, so it's a bank policy not a punitive measure). To build on the land, we need 20% in cash/equity so the 50% down on the property puts us closer to the 20% on the total house value.

    Reply
  • 2. doshimaitri  |  October 17, 2009 at 12:11 PM

    Buying a property is really worth giving you fruits in the future, as it is a type of an investment. Sometimes while buying another property leads to many up's and down's in life as the payment of the loan or the mortgage or the loan quarter's causes a kind of trouble as it is to be paid after deducting the routine capitla needed by the family. Hence it may also happen that there may not be so much money left for the repayment.Most people hire a solicitor or licensed conveyancer to undertake the legal side of buying their home. It is possible to do the conveyancing yourself, but it is time-consuming and also risky if you lack the necessary expertise. Although professional services are expensive, they have become cheaper in recent years and it is well worth the cost to successfully complete the purchase and to resolve any possible problems. This part of the process is crucial.Thus, online conveyancing is also regarded to be the best as people can get a fast decession taking into mind all the price level of online conveyancing solicitor's. Clik here

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  • 3. Kevin  |  October 17, 2009 at 7:05 PM

    If you have any questions about buying a lot or home in the Outer Banks, I would be happy to answer them. I am a local Outer Banks Realtor and can also provide you the name with some local lenders who are familiar with the lot buying process.

    Reply
  • 4. David hogard  |  November 27, 2009 at 12:24 PM

    Consider regular maintenance items to protect the value of your investment property and the systems that are associated with your property. Other expenses you may incur are regular maintenance items such as furnace cleaning and maintenance and inspection. This is a very important item if your investment property is a freehold. Other items such as the condition of the roof, foundation, interior and exterior walls and windows, appliances, lighting and window coverings, electric garage door openers and any other systems or items that are mechanical in nature should be checked on a regular basis to not only protect the value of your investment but also to prevent the failure of these items as opposed to regular maintenance.

    http://propertyinvestment.blogebay.com/2009/11/27/factors-to-consider-before-buying-an-investment-property/

    Reply
  • 5. Pia @ philippine real estate  |  December 20, 2011 at 8:12 AM

    I agreed that buying any property can be an exciting time of life and is a largest investment that one can make that's why buyers should make smart decision regarding this.

    Reply

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