Financial advice / opinions needed

[rubirose]

Best part of acreage life though is all the privacy, like stated above, hot tubs, stars. As far as the work goes, lawn care takes me 1.5 hours every week, snow plowing with a quad no big deal. I love the fact that we have all our toys at home and can take our time packing up to go camping, not like people who don't have their RV's at home, they are always rushing last minute. I would not trade acreage life in for anything, not yet anyway. But would I go into big time mortgage again later in life,nope.

 

[Timber_12]

I grew up in the country, moved to town, and finally got back to the country for the last few years. Out of everything I have with the exception of the wife/kids/pets I love the acreage the most. Even driving in town now I'm frustrated withing 30 minutes. Out on the farm, everythings peacefull! We have one neigbor within a mile and they never bother us, and the golf course can get a little loud on mens nights, but we have enough trees for privacy that it's our heaven on earth. Nothing better than being able to whip it out anywhere on your land when ya gotta go!

 

[DRD]

Just buy my place Dave, you can still keep your nice toys and get to polish the river ice behind the house with that TNytro.

 

[Clares240]

When it comes to debt, I start listening to people like Buffet and Soros. Soros just made a billion shorting the japanese currency in the last 5 months, and he says interest rate hikes are coming in north america this year. All indications are that there maybe some corrections coming in currency markets, and interest rates. That's about all I have to say on the subject, other than plan for what debt and the future might look like, not the present. Especially when your talking about large sums.

 

[BRP QSC]

Well here's the deal: the wife and I are looking at acreages. The question: is it financially responsible to go into hawk for another 10-15 yrs in order to get our dream acreage, or stay where we are at and put more money into RRSPs. Our current home is paid for. We've owned it since new and it's worth probably $350k +- today.

To get on what we want around here, we will be around 700k. So....we would probably do a 15 yr mortgage for the difference. What this means is no new sleds and quads every 2 yrs...no 1000 dollar purses for the wife, etc. Right now we have it pretty good....money is easy and we are putting a fair amount away every month, but we are living pretty high for a couple of Alberta blue-collars. Is the sacrifice to get out on an acreage worth it in the end? Will the extra equity that we have in this property be better as a retirement fund as opposed to putting more into RRSPs?

I dunno...we are quite torn bout what to do.

Well look at it this way.... its 15 years of payments. (no offense intended here) the wife will always want nice things and you will always want a new sled and quad.. maybe not every 2 years but 3-4 for sure... kiss the vacations and EASY living goodbye for sure. So if that doesnt make you rethink it then how about this..... the acreage WILL!!! need repairs and renovations over the next 5 years to get it where your wife wants it (remember she is always right) and in 15 years you will be at the age that you dont want the job of taking care of that and you will be thinking of a downsize move to something that will be easy to live with (back to where you arte now). the only time i would do that is if the market was going to make me a ton of cash so when you want to sell it will be a sweet deal

I say this cause my wife and i built just before the boom and out house has almost tripled in price so in 15 years it will be a easy million in the bank and bam!!! were done. We were just up in RedDeer yesterday looking at properties to see what was up there and as my wife has good taste... they were all $900,000 plus... yikes thats not what i wantso i talked her out of that one real quick.... Nice city

Hope this helps
Rich

 

[DaveB]

Personally, I would, and did "Go For It" Real estate is always a pretty solid bet. Given that you are quite solvent now, you are deferring 40+ % income tax by purchasing RRSP's so that you can pay the tax at a later date. Sure, it may be at a reduced rate.....maybe, but it will be in 2040 dollars, that will be different than 2013 dollars. Your new or additional property will also work as forced savings, and if it is your principal residence, no gains tax. Interest rates are low now, and you could make a real dent in the mortgage in short order because of that. Just make sure to leave yourself plenty of room in case the interest rates double or worse!!

To the top. Re-read through this thread and again, thanks all for the input. I think what Jeem says makes perfect sense. With our saved investments really going nowhere these days, a forced investment in a property is probably a good idea.

We are still looking at doing an acreage.....we have found one in a different area (adds 7 min to my current drive to RD from Penhold every day, and 4 min to my wife's drive to Innisfail from Penhold every day) that we think we like. Being not right next to/in Red Deer it is about 100k cheaper for the lot, but still 1.5 to 2 acres and paved all the way. We are thinking we can do it for under 600k now and are getting real close to pulling the trigger. We want to cut a few easy corners (not cheap out, but differ $$) so I think I will get the pad poured for the man-cave garage at the same time as the house foundation, but have it built after the house is done. The builder wants nearly 60k for a 30x30 garage finished with heat. The house price is reasonable (on par all around the RD area), but I think they are waaaay out to lunch on building what is essentially a box with doors. Storm, want to help me build the garage?

 

[mareshow]

Being a young guy I'm not going to pretend that i know 100% what i'm talking about but i have seen others go through similar experiences. I'm a pros and cons guy so lets look at both.

Pros of Moving To an acreage:

- Your dream home (something to be said for finally achieving your dream)
- Increased ability to store and use toys (boats, RVs, quads, sleds, etc you have the space now so the ideas are endless)
- Real estate means equity.
- Less wasted money. Although toys and luxuries are nice, they are a diminishing return. Money spent on them is often never returned. An acreage sounds like it will stop you throwing your money away on these things so you'll come out ahead in the end. (if you decide to sell later on)

There is more but lets stick with those for now, how about the cons?

Cons of Moving to an acreage:

- People always call your house an asset but i think that's not true. You need a house so its a necessity not an asset. Thus unless you downsize, its simply tied up capital that you can't get back until you sell or do something dumb like a reverse mortgage.
- A Decrease in quality of life, Well not necessarily but less luxuries for sure. While some call it wasted money, it is also lots of fun! so you have to weigh financial drain vs fun.
- More house/yard work. acreages are just more work, 'nuff said.
- If you're planning on building, i have it from several recent experiences that you can take your original budget and add at least 20% so instead of $700,000 you're now talking $840,000. Its just the nature of the beast when building now a days.
- More taxes, fees and costs. More land = more taxes as well as everything else involved of living out there.

again there is more but that is what i'll stick with for now.

so looking at both the pros and cons here I'd personally look at it from a different perspective. I'd ask myself if my current home is meeting all my needs and if it is, is it worth it to shell out the extra cash just to be on in acreage in my "dream home". If your current home is lacking and its affecting your quality of life or where you'd like your quality of life to be, then you have to consider if its worth it or not.

Yes real estate is an investment, But you have to remember that your current home is also gaining equity, and perhaps with a slight facelift could surpass what your needs are for it?

Personally, unless there is a huge hole needing to be filled, i wouldnt move. Better to build your financial portfolio (perhaps an investment property?) than go into debt just to be in your "dream home".

Just my opinion but i hope it helps

 

[DaveB]

Here's the REAL final word: The Wife wants it. Happy wife=happy life.




OK I want it too. I want to sit outside and hear nothing but coyotes in the distance. I want to be out of town...tired of dealing with neighbors and tired of the Town of Penhold and their horribly managed town assets. Can you believe we pay over 4k a year in taxes? This house in Red Deer would be 1800 bucks. I do need more space for my stuff. We have a large lot now and we are out of space. I'm tired of having to unhook my quad trailer and hand-bomb it then back my RV into the parking spot every weekend...out in the country I'd just wheel home and throw 'er in park. Get a blade for the quad....get a ride on mower and a straw hat...I'm all good.

 

[somethingnuw]

I am going through the same thing right now. But I am 28. Current house is payed for. Just have the truck payments that I renew every 2yrs, turbo sleds that I renew every year or 2. Do I stick with the sleds for a few years and just get into buying used so I can buy my acreage property. House is 500k for a 2yr old home on 40acres. Sounds like a no brainier when you lay on paper/online. Haha

your young and odviously have done well... but what about taking some of your money and buying an investment property... even if you don't want the hassle property management companies have never let me down... get three of these property's and your truck is 100% right off... just saying

 

[somethingnuw]

Here's the REAL final word: The Wife wants it. Happy wife=happy life.




OK I want it too. I want to sit outside and hear nothing but coyotes in the distance. I want to be out of town...tired of dealing with neighbors and tired of the Town of Penhold and their horribly managed town assets. Can you believe we pay over 4k a year in taxes? This house in Red Deer would be 1800 bucks. I do need more space for my stuff. We have a large lot now and we are out of space. I'm tired of having to unhook my quad trailer and hand-bomb it then back my RV into the parking spot every weekend...out in the country I'd just wheel home and throw 'er in park. Get a blade for the quad....get a ride on mower and a straw hat...I'm all good.

beer holder for the ride on mower... call me forest gump but i never minded the old ride on mower... do yourself a favour get a commercial one... belt drive ones suck

 

[somethingnuw]

someone indicated building will cost more then your budget... i agree my dad was a builder... often the plans and reality don't match up and then your expectations change when your standing inside a framed house so you and your wife make changes... all these things the builder adds at "cost plus" this is where they make real money if they were on a contract...

another side note... everyone that I know that built their house called their first home their "learning home" and within 3 years moved and did it again to really get their dream home and fix their mistakes... just saying...

cost of lumber is going to jump huge so be careful... china is buying up huge loads of anything in 4x4 dimension but it's going to cost us domestically lots... might be worth jumping on an acreage already built... just saying something else to look at... good luck... add pics when you do

 

[Nytroman]

Very tough decisions for sure. I am currently on 80 acres over the river with a awesome view a mile from where I grew up. Spent hrs this weekend watching three moose on the river bank enjoying the willows! I built there 10 years ago have a 30x60 three car, and have just been in a temporay mobile home till we could build our dream house. next month the house is supposedly becoming reality but the build plans have changed and what we started as a 1500-1600 house is now 1878 sq/ft and the costs are above and beyond my anticipated estimate, not including the said mentioned 20% overun I am sure everyone is accurate on. I have a three year old daughter and we are 40 minutes from town, commuting over the next 10plus years for her schooling and extra curricular activities will probably pay the morgage for a house in town for us. Plus I am really doubting I want to spend a half plus million on just as you said Dave, 4 walls and some doors and have to loose the financial freedom and curtail my daughters future ambitions. I am seriously rethinking the house build and looking at houses in town close to the school as a investment, still keeping the acreage/farm/ play area as a evening, weekend, summer get away till we can build there safely. Have you looked at just some property, put up the mancave, have the space and still stay put in town for a bit longer? I cant advise as I am confused myself, but will never give up our current yard so is not an investment for me, its a luxury only, what a luxury it is! You will no doubt like the acerage, the maintenance is part of the fun IMO

 

[imdoo'n]

To the top. Re-read through this thread and again, thanks all for the input. I think what Jeem says makes perfect sense. With our saved investments really going nowhere these days, a forced investment in a property is probably a good idea.

We are still looking at doing an acreage.....we have found one in a different area (adds 7 min to my current drive to RD from Penhold every day, and 4 min to my wife's drive to Innisfail from Penhold every day) that we think we like. Being not right next to/in Red Deer it is about 100k cheaper for the lot, but still 1.5 to 2 acres and paved all the way. We are thinking we can do it for under 600k now and are getting real close to pulling the trigger. We want to cut a few easy corners (not cheap out, but differ $$) so I think I will get the pad poured for the man-cave garage at the same time as the house foundation, but have it built after the house is done. The builder wants nearly 60k for a 30x30 garage finished with heat. The house price is reasonable (on par all around the RD area), but I think they are waaaay out to lunch on building what is essentially a box with doors. Storm, want to help me build the garage?

you know anyone who can do garage doors?

 

[DaveB]

you know anyone who can do garage doors?

Hahaha...that would be me. The only "house builder skill" I have.

 

[imdoo'n]

dibbs on storing my stuff at yer place dave, buddy ol pal

don't worry don't have much.

 

[Pecos]

Well it's about time you made the plunge. you can't take yer money with you and if you leave it in RRSP's for the rest of your life chances are they won't be worth anymore......this will be a SOUND investment. Best move I've ever made, just re-appraised and my acreage is worth $250k more (real market value by realtors, not eyes wide shut appraisers) than I paid for it in 7 years.....and let's not forget the fact I have a no more arshole neighbors...........

 

[imdoo'n]

Well it's about time you made the plunge. you can't take yer money with you and if you leave it in RRSP's for the rest of your life chances are they won't be worth anymore......this will be a SOUND investment. Best move I've ever made, just re-appraised and my acreage is worth $250k more (real market value by realtors, not eyes wide shut appraisers) than I paid for it in 7 years.....and let's not forget the fact I have a no more arshole neighbors...........

what? i thought davewas a good guy?



well after a few shots?

 

[Pecos]

Pretty sure he wasn't included there.....had 'other' neighbors that I am sooooooooo glad I don't ever have to put up with again........

 

[imdoo'n]

yeah, but that friggin dave, he is kinda crazy, in a quiet way

 

[Snowdin]

Here's the REAL final word: The Wife wants it. Happy wife=happy life.




OK I want it too. I want to sit outside and hear nothing but coyotes in the distance. I want to be out of town...tired of dealing with neighbors and tired of the Town of Penhold and their horribly managed town assets. Can you believe we pay over 4k a year in taxes? This house in Red Deer would be 1800 bucks. I do need more space for my stuff. We have a large lot now and we are out of space. I'm tired of having to unhook my quad trailer and hand-bomb it then back my RV into the parking spot every weekend...out in the country I'd just wheel home and throw 'er in park. Get a blade for the quad....get a ride on mower and a straw hat...I'm all good.

Yeah that part about hearing nothing but coyotes that ain't going to happen you're going hear dogs barking and lots of it everybody in the neighborhood has to have two dogs and some have to have more and they can't seem to figure out how to get them to shut up.