Costs of building an acreage
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Joined: Aug 2002
Posts: 1,257
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From: Sundre, Alberta
Banks are strange when it comes to land.
Yes, they will hand a mortgage over if you own the land but when you get an assessment of your land and buildings, they don't include the land, it doesn't exist as far as they are concerned.
After all our improvements, fencing, barn, some house/ shop improvements, etc, etc. The bank showed up to give us a new assessment and the only thing they looked at was the house and the shop. I asked the lady who was doing all this and she said that it makes no difference to the bank what it sits on, the house and garage are material and that's all that matters to them.
BUT, I also told by this same person ( a between you and me thing) the land does come into play "internally" because the banks are a business and they don't lose money. If you lose your house and the bank has to sell it, they are guaranteed "profit" because the land then comes into effect.....They can't sell one without the other thus getting them a return on their investment. The bank will sell it for everything they can get for it, not what you owe!
It's a screwy deal, the bank will only assess and mortgage the house/garage and then the County assesses the entire property and you pay against that value. Getting it from both ends in my book....what really is the value of my property when you look at it?
We went through all the hoops when we first were looking and were prepared to buy land to start but then that basically left us with nothing cash wise to get the ball rolling for a mortgage then services, etc, etc.
Dollar for dollar, I still say it's a better deal to buy existing and improve from there. Find a property that you like, doesn't matter about the house, get a mortgage on it and then blow the house up and drop a new modular or build a new house on top of it, it's all within your mortgage and no hassles about having to own the land outright.
On our place, the asking price was a little high, the owner was already transferred, the place was a disaster and wouldn't sell for that matter alone, they had stupidly jumped on a new place that completely maxed them out and they had to unload NOW. We saw the potential of the property after it would be cleaned up and made them a real low take it or leave it offer with immediate next day possession. They took it and ran, we got our property.
So after 6 weeks with an excavator, 110 dump truck loads of misc crap hauled away consisting of 6 old buildings, 4 cars and almost a 1000 dead or dieing poplar trees, our $37,000 clean up got us a usable clean property. The barn, new fencing, gardens, etc, etc all came after to what we have today 3 years later.
We still have work to do on the house/garage to bring it up to our standards but we are working in from the property perimeter first to get all the outside/landscaping/clean up done first and then the house. Because I'm a finishing carpenter, I didn't care about the house, it was all going to be changed anyways.
Basically we bought a property with a place to live, we didn't buy a house on a piece of land.
Jeff
Yes, they will hand a mortgage over if you own the land but when you get an assessment of your land and buildings, they don't include the land, it doesn't exist as far as they are concerned.
After all our improvements, fencing, barn, some house/ shop improvements, etc, etc. The bank showed up to give us a new assessment and the only thing they looked at was the house and the shop. I asked the lady who was doing all this and she said that it makes no difference to the bank what it sits on, the house and garage are material and that's all that matters to them.
BUT, I also told by this same person ( a between you and me thing) the land does come into play "internally" because the banks are a business and they don't lose money. If you lose your house and the bank has to sell it, they are guaranteed "profit" because the land then comes into effect.....They can't sell one without the other thus getting them a return on their investment. The bank will sell it for everything they can get for it, not what you owe!
It's a screwy deal, the bank will only assess and mortgage the house/garage and then the County assesses the entire property and you pay against that value. Getting it from both ends in my book....what really is the value of my property when you look at it?
We went through all the hoops when we first were looking and were prepared to buy land to start but then that basically left us with nothing cash wise to get the ball rolling for a mortgage then services, etc, etc.
Dollar for dollar, I still say it's a better deal to buy existing and improve from there. Find a property that you like, doesn't matter about the house, get a mortgage on it and then blow the house up and drop a new modular or build a new house on top of it, it's all within your mortgage and no hassles about having to own the land outright.
On our place, the asking price was a little high, the owner was already transferred, the place was a disaster and wouldn't sell for that matter alone, they had stupidly jumped on a new place that completely maxed them out and they had to unload NOW. We saw the potential of the property after it would be cleaned up and made them a real low take it or leave it offer with immediate next day possession. They took it and ran, we got our property.
So after 6 weeks with an excavator, 110 dump truck loads of misc crap hauled away consisting of 6 old buildings, 4 cars and almost a 1000 dead or dieing poplar trees, our $37,000 clean up got us a usable clean property. The barn, new fencing, gardens, etc, etc all came after to what we have today 3 years later.
We still have work to do on the house/garage to bring it up to our standards but we are working in from the property perimeter first to get all the outside/landscaping/clean up done first and then the house. Because I'm a finishing carpenter, I didn't care about the house, it was all going to be changed anyways.
Basically we bought a property with a place to live, we didn't buy a house on a piece of land.
Jeff
Don't ya just hate bankers? ....... oh,... wait a sec....
Registered User
Joined: Apr 2005
Posts: 757
Likes: 0
From: Calgary/Alta
Banks are strange when it comes to land.
Yes, they will hand a mortgage over if you own the land but when you get an assessment of your land and buildings, they don't include the land, it doesn't exist as far as they are concerned.
After all our improvements, fencing, barn, some house/ shop improvements, etc, etc. The bank showed up to give us a new assessment and the only thing they looked at was the house and the shop. I asked the lady who was doing all this and she said that it makes no difference to the bank what it sits on, the house and garage are material and that's all that matters to them.
BUT, I also told by this same person ( a between you and me thing) the land does come into play "internally" because the banks are a business and they don't lose money. If you lose your house and the bank has to sell it, they are guaranteed "profit" because the land then comes into effect.....They can't sell one without the other thus getting them a return on their investment. The bank will sell it for everything they can get for it, not what you owe!
It's a screwy deal, the bank will only assess and mortgage the house/garage and then the County assesses the entire property and you pay against that value. Getting it from both ends in my book....what really is the value of my property when you look at it?
We went through all the hoops when we first were looking and were prepared to buy land to start but then that basically left us with nothing cash wise to get the ball rolling for a mortgage then services, etc, etc.
Dollar for dollar, I still say it's a better deal to buy existing and improve from there. Find a property that you like, doesn't matter about the house, get a mortgage on it and then blow the house up and drop a new modular or build a new house on top of it, it's all within your mortgage and no hassles about having to own the land outright.
On our place, the asking price was a little high, the owner was already transferred, the place was a disaster and wouldn't sell for that matter alone, they had stupidly jumped on a new place that completely maxed them out and they had to unload NOW. We saw the potential of the property after it would be cleaned up and made them a real low take it or leave it offer with immediate next day possession. They took it and ran, we got our property.
So after 6 weeks with an excavator, 110 dump truck loads of misc crap hauled away consisting of 6 old buildings, 4 cars and almost a 1000 dead or dieing poplar trees, our $37,000 clean up got us a usable clean property. The barn, new fencing, gardens, etc, etc all came after to what we have today 3 years later.
We still have work to do on the house/garage to bring it up to our standards but we are working in from the property perimeter first to get all the outside/landscaping/clean up done first and then the house. Because I'm a finishing carpenter, I didn't care about the house, it was all going to be changed anyways.
Basically we bought a property with a place to live, we didn't buy a house on a piece of land.
Jeff
Yes, they will hand a mortgage over if you own the land but when you get an assessment of your land and buildings, they don't include the land, it doesn't exist as far as they are concerned.
After all our improvements, fencing, barn, some house/ shop improvements, etc, etc. The bank showed up to give us a new assessment and the only thing they looked at was the house and the shop. I asked the lady who was doing all this and she said that it makes no difference to the bank what it sits on, the house and garage are material and that's all that matters to them.
BUT, I also told by this same person ( a between you and me thing) the land does come into play "internally" because the banks are a business and they don't lose money. If you lose your house and the bank has to sell it, they are guaranteed "profit" because the land then comes into effect.....They can't sell one without the other thus getting them a return on their investment. The bank will sell it for everything they can get for it, not what you owe!
It's a screwy deal, the bank will only assess and mortgage the house/garage and then the County assesses the entire property and you pay against that value. Getting it from both ends in my book....what really is the value of my property when you look at it?
We went through all the hoops when we first were looking and were prepared to buy land to start but then that basically left us with nothing cash wise to get the ball rolling for a mortgage then services, etc, etc.
Dollar for dollar, I still say it's a better deal to buy existing and improve from there. Find a property that you like, doesn't matter about the house, get a mortgage on it and then blow the house up and drop a new modular or build a new house on top of it, it's all within your mortgage and no hassles about having to own the land outright.
On our place, the asking price was a little high, the owner was already transferred, the place was a disaster and wouldn't sell for that matter alone, they had stupidly jumped on a new place that completely maxed them out and they had to unload NOW. We saw the potential of the property after it would be cleaned up and made them a real low take it or leave it offer with immediate next day possession. They took it and ran, we got our property.
So after 6 weeks with an excavator, 110 dump truck loads of misc crap hauled away consisting of 6 old buildings, 4 cars and almost a 1000 dead or dieing poplar trees, our $37,000 clean up got us a usable clean property. The barn, new fencing, gardens, etc, etc all came after to what we have today 3 years later.
We still have work to do on the house/garage to bring it up to our standards but we are working in from the property perimeter first to get all the outside/landscaping/clean up done first and then the house. Because I'm a finishing carpenter, I didn't care about the house, it was all going to be changed anyways.
Basically we bought a property with a place to live, we didn't buy a house on a piece of land.
Jeff
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