Should we build a house?

Question

Okay I am anonymously asking for financial advice on glow... I know it's weird but I thought I'd give it a shot in case anyone experienced or knowledgeable (about this subject) come across my post. So my SO is currently about to come into some money, around 200 grand. For the area we are looking to live in, we could buy a decent small home for around 400,000. If we build, the lot would be around 90, 000 -150, 000 and the estimated price of the home would be around 80,000. Obviously more money would be put into this depending on the features, appliances, and furniture we want. I'm just wondering if this would be a good investment? Rent for the apartments in the area we are looking at start at 1,600 a month. I'm just wondering if anyone knows if 200k is a good starting point for building a home? We really have no idea. We are only 22. We are getting a financial advisor once he has the money, who will be able to help us with this. I'm just wondering if we are wasting our time dreaming and putting our hopes up or if this sounds doable. Thanks

Answer

This isn't advice but it's crazy to see the difference in costs in areas. In my area, 200,000 could get you a beautiful large home with acres of land!

Answer

If it were me (just my opinion), I would talk to your advisor about investing that money and getting a return on it.  They do not teach about investing, which drives me insane because you can turn that kind of money into SO much more and eventually be getting a return that could easily pay all of your bills with no problem and set you up for your retirement.  I know at 22 you might not be thinking that far ahead, but that is what I would do.

Answer

Personally, I think you're being extremely responsible by considering useful things to do with that windfall, that will also be setting you up for your future. I can't really advise you either way what to do with the money, but I think that putting the money into a house would generally be a good idea. What I think you should do is instead of waiting until you receive the money to get a financial advisor, have a meeting with one or two preemptively and find one that you like, and explain your situation. I'm sure that they would be able to give you pretty sound advice and you would be able to figure out which advisor you have the best rapport with.

Answer

Here’s my take. We recently had a home built as part of a subdivision development. There were certain builders and things that you had to use. Because of this everything was at a lesser price. We went in and picked out everything. We picked a lot, the house floor plan, flooring, everything. Then the builder took care of everything else. All in all, we had it finished in 5 months. I don’t know if there is any kind of development like that around you or not. But we love our house. And when we sell we’re already gonna have almost 22K in extra value not including what we already have paid and will have paid in mortgage. 
If you ever decide to sell even a purchased house, you will end up having 200k plus whatever you’ve paid in mortgage payments when you sell. You will be able to take all of that (plus the possibility of your Home growing in value) and get a very very nice house.

Answer

My advice
1. It will cost a lot of money... always more than you budget for.... especially if you and your SO are not handy
2. If you plan on having a huge physical part in it, make sure you can devote the time... it's tough enough working all day at our jobs right.
We bought our home and are renovating the basement (taking so long because we are doing everything ourselves with hands from family).
Soo just some thugs to keep in mind... and where will you stay while the house is being built? Can you afford rent during this Reno process? Tons to consider. Good luck !!!!

Answer

You could use a chunk of the money on a down payment for a house already built in the area of your choice. That's what my husband and I did for our first home when he came into money. Building a house seemed like a lot of time, work and money as first time home buyers.

Answer

im in the process now having a home built..it takes lots of time and money..keep in mind if you decide that route u also have to pay for permits, possible hook up fees like with sewer and water amongst other things..

Answer

A decent small home for 400k? Here that would get you either a mansion or a LOT of acreage

Should we build a house?

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