Buying Land and Building

Most folks are looking for land going for $100,000 or so. However, any piece of land in this price range will require a substantial amount of development before it can be built on - perhaps another $100,000 or $200,000 on top of the initial purchase price. Or, you can buy some land in the $300,000 range that's ready-to-build. But land loans require 30% down - you will need $100,000 cash (typically, unless there is owner financing) to buy a $300,000 piece of land. Building a house costs around $150 per square foot - perhaps $200 per square foot for a challenging site and/or higher quality materials or amenities. Yes, you can put a manufactured/mobile home on some land, and you can even do a yurt - but the county will require all the other things a house needs, such as a well, septic system, good road for emergency vehicles, etc.

 

In summary, buying and building is definitely an option...for people with a lot of money to put into the project. If you've only got a little bit of cash, buying a pre-built structure is definitely the most practical path towards home ownership.

 

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