Dean Graziosi

It can be very tempting to buy land and build your own house rather than buy a property that is ready to go. This is for several reasons. First, you don’t want to wind up with a house you don’t like. When you build your own house you know you will enjoy the layout of the structure for years to come. In short, you get your dream home. Second, you can sometimes buy land and build on it cheaper than you can purchase a property with a house already on it.

Whatever your reasons for looking into buying land, there are some important things you need to consider before you take the leap. Some of these things are in relation to building on the land, and some are relative to the land itself. All of these things should be carefully considered before you purchase a plot of land.

1.      How much will it cost to run utilities to the land? If the land does not already have utilities running to it, you need to consider this cost in the cost of building on the land. This type of work can really add up, and can cost thousands of dollars. It is important to consider this potential cost when deciding if it is more cost effective to buy land or a real estate property.

2.      Is the land zoned property for your use? If you want to build your dream home you will need to make sure the land is zoned for residential use. If you have a home based business or want to start one in the future, you also should make sure that the land is double zoned for residential and commercial use. This way all of your bases are covered.

3.      Is the land free for purchase? Make sure that the land is not part of a development project, as this can come with many hassles and restrictions when it comes time to build on the land. You should also make sure that there are no taxes owed or leins on the property, just as you would with any real estate transaction.

4.      Is the land in a convenient location? Often times land for sale is outside the city limits or in the suburbs. You will want to make sure that it is convenient for you in terms of work and facilities, such as the grocery store. Carefully weigh the options of living in the city versus the countryside, and make sure you are willing to make those sacrifices before spending the money on the land.

5.      Can you get the financial backing you need to build the house? Buying land is often cheap, and can typically be done using savings without any mortgage necessary. However, building a home on the land is a different story. Make sure you can get a construction mortgage before you buy the land. Qualifying for such a mortgage can often be more restrictive than a typical home loan, so you need to get pre-qualified and get that ball rolling before you buy land.

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Fannie Mae s one of two government-backed mortgage enterprises responsible for ensuring the liquidity of the mortgage market. The recent economic meltdown resulted in a lot of government bailouts. These bailouts were not just limited to banks but also to the real estate sector; to Fannie Mae and its twin, Freddie Mac. The resulting effect was tighter controls on the institutions leading to even more foreclosures flooding the market. All of a sudden, people who were once considered prime purchasers were not unable to meet the steep conditions set by the institutions and could not qualify for housing loans.

The direct result of this is that even though there are now more foreclosed properties on the market than ever before, there is even less buying going on because getting a housing loan is now a rigorous process for prospective purchasers.

Probably as a result of this and other developments in the real estate sector, Fannie Mae recently released a couple of incentives geared towards homebuyers and realtors. These are financial incentives provided on sales of HomePath properties and run through October. According to a press release by Fannie Mae on June 11, the goal of the incentives is to stabilize neighborhoods and is only available to buyers who intend to purchase as a primary residence.

For homebuyers, the incentives offer up to 3.5 percent of the final sales price to put towards closing costs. Realtors representing the owner occupant buyer get to receive a $1,200 bonus on the sale. These are for HomePath properties and for buyers who intend to live in the purchased property as a primary residence. Besides these, there are also some other conditions which must be met in order to qualify for these incentives.

Conditions

One of the conditions is that the buyer or the agent representing the buyer needs to request the incentive upon submission of the initial offer.

The initial offer needs to be submitted on or before June 14, 2011 and any offers made before that do not qualify for the incentives.

Also, the deadline for the incentives is October 31, 2011 and it is absolutely mandatory that the sale close before that date as there would be no extensions to that deadline.

Sales made by pool or auction will not be eligible for the June 14, 2011 to October 31, 2011 incentives.

Any property that was acquired by Fannie Mae in connection to a financing under a reverse mortgage is not eligible for this incentive.

In order to qualify, a buyer has to sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.

These are the main conditions although there are a few more which are available on the website, homepath.com.

It is important to note that Fannie Mae also has a lot of other incentives available for homebuyers which can be found on the Homepath.com website.

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It has been said that if you want to make money doing anything you should just follow the Baby Boomers. Almost 80 million Baby Boomers are getting close to retirement. In fact, about a hundred thousand Baby Boomers who have chosen early retirement will be receiving their first Social Security checks. The outlook for these retirees and those who come after them has never been brighter. Although each person’s situation is different, as a whole, this generation will have a quarter of a century of retirement to look forward to, and will bring to retirement an unprecedented level of affluence and continued good health. Droves of Baby Boomers are snapping land for sale because they want to ensure a comfortable retirement. The rest of this article will explore reasons Baby Boomers are snapping up this land.

Boomers are Value Conscious

Although this generation is financially better off than their predecessors, they are more cautious with their money. Since they realize they have a long life span, they understand that they have to be very careful with their assets to that they do not outlive their money. Therefore, Baby Boomers tend to turn down traditional real estate opportunities and financing. Instead Baby Boomers are finding land for sale by owner or foreclosures. They usually intend to build on these properties at a later time. They are buying this property as a foundation for their retirement years. They are looking to get these properties at a bargain.

Location, Location, Location

Part of the process of finding the right kind of land for sale is finding the right location. Current trends indicate that Baby Boomers are choosing to buy land that is off the beaten path. Few are fortunate enough to be able to afford to buy or build Malibu beach houses or Manhattan penthouses. Instead, they are choosing to go where property taxes and property prices are low. However, - and this is a key  factor - they still want many of the amenities that make retirement living relaxing and rewarding. So, for example, they look for land in or near a golf community, or lake land that affords them wonderful opportunities for fishing. They often opt for land in areas that are going to be developed into private communities, complete with lakes, rivers, recreation centers, and nature trails. Most importantly, they don’t want to be “snowbirds,” living winters in one area and summers in another. Instead, they want mild temperatures that they can enjoy year-round. This should be a plus for people with properties in warm climates.

Unlike the generations that came before them, baby boomers know what they want. They also typically have the money to afford to buy exactly what they want. If you can buy investment properties near the things that baby boomers want, you will have a leg up on the competition.

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