Financing a detached garage

[adamcc91]

Hello, my wife and I recently purchased a house (in January) We graduated last may, we have both been in our jobs and we make pretty good money. The problem is that we bought the house 3.5% down, and she had 90k in loans. (we are down to 45k now)

We have been focusing on throwing all of our extra money into her loans because of how high the interest rate is. (up to 10.5% on some)

I want to build a detached garage (around 30-40kish) Does anyone know a good financing option? I'm not sure if personal loans go that high, and I can't take a second mortgage because we don't have enough equity.

I know what you're all thinking JUST WAIT TILL YOU PAY OFF YOUR LOANS AND SAVE UP YOU *******. Well here is the next portion as to why I need to act now.

We live in a rural subdivision which is being devolped right now. If I want to build a shop, I have to do it before 50% of the lots are sold to be grandfathered in. More and more lots are being sold, so I want to act on it within the next year.

Ideas? Thanks! (no we aren't moving, we love the house and its in her dream area)

 

[Chevy-SS]

Have one of your parents co-sign a note.

Or maybe, have one of your parents take out a second (or first) mortgage on their house, and then you make the payments - and pay it off early.

EDIT - if they actually agree, then get EXTRA money for the project. You'll almost certainly need it.

-

 

[adamcc91]

Problem number 3, too much pride to ask them. Thanks for the idea, but I just can't.

 

[themiller]

1) stop paying so much against student loans 2) save for 10 months 3) start building

or

4) carry a note from your parents for the 30-40k

or

5) larger companies will finance the build. Use it. You'll probably end up around 6-8% on that note. Just make sure there is no prepayment penalty.

 

[racerex]

What about building a very basic/low cost build so that get something in under the grandfathered requirements. Then you can finish off and/or upgrade the structure as you have disposable income. As you expected to hear, taking on more debt to build a garage is not wise. I just had to say it.....wearing my day job hat....both my wife and I are CPA's.

 

[Orionrising]

build a shell, finish it later

 

[Zeke]

Here an inspection to keep a permit alive requires only that there is at least one inspection per 180 days. You can't expect a trench to last long and steel isn't supposed to rust. But, if you can get the slab in then a wall up, you should be able to do this at more or less your pace.

 

[an8pilot]

What about building a very basic/low cost build so that get something in under the grandfathered requirements. Then you can finish off and/or upgrade the structure as you have disposable income. As you expected to hear, taking on more debt to build a garage is not wise. I just had to say it.....wearing my day job hat....both my wife and I are CPA's.

Very wise idea. I built a 5,000 square foot detached garage. Did it on personal credit from a local bank at 6.5%. It is horrendous the difference in a few percentage points.

I did it for same reasons why you want to do it now.

Total cost for me 80k in 2007. 35k for 120 mile per hour wind structure.
10 k for a 55 x 16 Hydroswing door and 3 k for 3ea 12' by 12' roll up doors.
21k for the concrete, and 10k for the 1/2 acre.

I assembled the building myself. View how i did it at facebook/an8pilot

Still working on it making it an end product but functional. Now owe 40k. And converted it to two separate credit cards at 4.9% for life of loan and paying as fast as i can.

Can't get it converted to house mortgage because market value of the home is 140k last appraisal 3 years ago when i got a 15 year 2.62 % mortgage on the home and owe 99k on that.

I love the building. Actually an aircraft hangar. But no comparables in the area to get the value up so i can convert the 40k credit card debt into the home mortgage via heloc interest. But the building and its own land itself is paid off.

If i were to get it appraised higher so i could get there hello, the tax assessors would possibly get hold of that and raise my home taxes, which would hurt when I'm 77.

Best advice like the cpa said. Design a shell that is well built that you can build out from. Even my hangar i set up to be able to build out an office on the corner and lean to's on the side and set the measurements up that way.

Definitely build a shell in a way a building inspector would approve, and maybe get an older retired builder in the area that knows his way around for advice. Take him to lunch and pay him a fee.

If you go steel, avoid the broker by mining for a mfg that will let you come to the plant. And meet the salesman there to prove he's not a broker. Seems like bldg mfg make a profit off of insulation. They got mad when i said i wanted none. Many reasons why.

You can build a building that is mainly a pole barn that only is enclosed at one end, and the rest of the roof structure is there to let you work in shade.

You could build a quonset hut building but those m,fkrs charge the same cost as the same size regular steel aircraft hangar building and without the end walls at that price.

Very hard to get financing.

 

[AndyCBR]

You might be able to get a credit card with a 0% intro rate for 12-18 months. That may give you some wiggle room to get a slab poured.

Buy the framing material as you need it and you can probably swing the shell out of pocket.

Get a second, separate loan for the detached structure? If both of your income is good you should qualify as long as you aren't stacked up on credit cards and/or new car loans.

 

[jonjon1]

Your time restraint *****, being patient would be my first recco...

How about this, go to a credit union with your plans. Get an appraiser to write up an appraisal and a future appraisal showing what your property will be worth with the new building, ask them for a construction loan based on the future value, it may show more equity than the 3.5% {+ the trivial principal you have paid in a year}.

In other words say your house is worth $200K, call your current equity 5% at $10K, so you owe $190K.

Now the projected appraisers report says with the building your property is worth $280K, you will borrow $40K and owe the previous $190K for a total loan of $230K. So NOW you will owe $230K on a $280K home, problem solved... Construction loans are a bit difficult though, how they usually work is...
They give you the line of credit, you write checks to the contractor, {some of them will inspect for themselves to make sure the work is getting done}, and when all the work is done, you refinance the loan for a permanent loan... Some of them you dont make payments until the work is done and the loan is refinanced...


That is one option, Its too bad you paid $45K in student loans in the last year, that would have been your building right there.

If the construction loan is not an option {it takes all the blocks falling perfectly to make it happen}, then I suggest you stop smashing her loans right now, since you paid $45K in a year, you should be able to save most of that money in another year {minus her minimum payments of course}. So GC the project yourself, go pull your permits, contract out the sight work, and as you save the money continue the project, in a year you should be weather tight....


Good luck, it kills me to see people using expensive loans to get money, in your case you can't wait, it *****...

PS- the building going on around you should help your property value, hopefully the houses going up are selling for a lot of money, that will make your comps show high, and in turn make your house worht MORE per sq foot. I know most houses are getting built for $130 a sq so if your comps are all showing $150-180 a sq foot {not sure what your area brings} that will make your house worth that much minus depreciation, I had to explain that to many angry neighbors in my time, they see my excavators, skid steers, and dozer getting dropped of in an 80 acres lot I just cleared and get all crazy with picket signs, lol. I have to bring them a cheese danish and some coffee and show them other projects that raised neighborhood property valvues by $40 a sq foot,
"I am not bringing in the devil, I am bringing you free money, beautiful new neighbors in beautiful new homes, with great little kids to breath new life into your neighborhood"... I am not ashamed to say, I vinyl sided, painted, and landscaped a few houses for free to raise the value of the lots I was selling next door, had to talk a few old men into junking their last 3 cars that were sitting in the back yard, I even built a guy a single car garagae for cost of materials so he would take down this god awful pair of shredded vinyl top/tube frame car ports, try to sell a $350K house with them things bleeding blue ribbons of tarp material all over the brand new kentucky blue I just laid down...


ANYWAY, look into construction loans based off future value if that doesnt work, GC the project yourself and get the project started, figure the first payment would be the plans and permit, then the sight work, then the form, footing, and floor {I like to do the floor at the same time}, once that is done you will have to save a bit to go to the next step, but it should come pretty fast if you are eating pb and J and paying minimum on all your loans...

Good luck...

 

[38Chevy454]

If you have (as example) $8000 dollars per month, you just have to prioritize what you spend those on. Fixed expenses come first, assume mortgage/prop taxes/insurance is around $2500, leaves $5500. Another $1000 for groceries, utilities, maintenance, internet/TV, auto insurance, etc. Now you have $4500. Assume you have some car payment(s) and fuel costs, let's make it $1000 and now $3500 left. Discretionary $250 for eating out and entertainment expenses and down to $3250 left for debt or savings.

You said you paid off $45K in student loans last year, great to get that down, but it may be your priority is to now make those funds go to garage savings. You could also pay as you go by acting as your own GC, so use Zeke's idea and make incremental progress to keep the permit active and over a couple years you should be able to at least have a structure up with roof, even if unfinished inside.

 

[bry@n]

I'd use funds fromt he student loans to get the basic shell built. Once that was built, I'd redirect the funds to the students loans till done and then back to the garage.

you have to weigh the overall cost in both the $$ for the loans and the opportunity factor of building now.

 

[WAPat]

Look into refinancing/consolidating the student loans, you may be able to reduce the interest rates to something more palatable. Once then redirect your extra payments to those into savings for the build. If you have been able to pay down 45K in student loan debt in a year you should be able to save enough to at least get a building shell up in 8-10 months.

 

[Homerr]

Home equity line of credit?

 

[buddyboy]

question for you.

if you only made min payments on all your loans, but kept all other spending the same, how long would it take you to save up 30k?

if that time period is not acceptable, then how much can you cut from other spending to bring it into an acceptable time frame?

by doing this your basically borrowing the money from yourself.

also remember you don't need all the money up front, you'll need it in stages.

if you can save 10k every 6 months that will give you 18 months to build and pay for it.

 

[MattN03]

Work extra jobs on the side and pay down the student loan even quicker or cash flow (or a portion) of the building.

 

[buddyboy]

also don't forget to get lien wavers from your contractors as the work is completed and paid for, that way they can never say you didn't pay them in full.

 

[buddyboy]

even more advice... don't let your contractors know you are self financing and paying cash... some will try to get all up front or 25/25/50 or some other formula.

just tell them your lender requires the work to be completed or the materials delivered before payment is rendered. (just don't tell them the lender is you)

example: you set up the COD account with the lumber yard, and let your framers order on your account for your job, when it's at your house you pay the lumber yard... when the framers are finished with their work and it's passed inspection, you pay the framers.

 

[Conner]

Despite what you said, all of the statistics say you are going to move into a bigger house within the next five years. I would just sit tight and pay off your loans, then build up your savings. I know it isn't the answer you want to hear, but at your age there is very little predictability in where your career and family is going to take you, and that kind of uncertainty and additional leverage don't necessarily mix well. If and when you have kids and if your career progresses and you have more money, you will probably look for a bigger place and have the money to upgrade. Just be sure that spending on (and borrowing to build) a new garage makes sense economically, i.e. in the resale market.

 

[ryan77]

jonjon you should be a motivational speaker, great concepts. I enjoyed reading that!

 

[Angelfire]

Perhaps there's a provision that allows you to pull a permit but the work doesn't start for a year? It's worth asking. Or at least seeking planning permission with the caveat that work won't start for a year or two. I'm very much in the "no debt" camp especially when you're just getting started on life so would endeavour to get the student loans paid off then worry about the garage.

 

[DeadSock]

My advice is, calculate your net worth (I'm assuming it's negative due to debt).
Next calculate the cost of that debt, prorate some versus others (e.g 3.5% on 200k vs 10% on $10k). Mortage debt can be discounted somewhat depending on tax bracket, other debt not so much.
If your negative net worth is more than the 10yr treasury, pay off the highest prorate debt first.
Once you get your negative net worth to within 10yr treasury, you have 2 options.
1) Leverage further (e.g. take on more debt).
2) invest in yourself (e.g. max out 401k/IRA/Roth)

Do this calculation yearly.

 

[adamcc91]

Wow, thank you everyone for your input, I'm amazed at how many people contributed. There are a lot of ideas to ponder over, I guess I can give a little more backround info. I come from a well off family. We own a couple Napa auto parts stores, with that said, I refuse to dip in to the old man's pocket to help finance this. I went to school and had 90% covered by scholarships, and I paid the other 10%, so I left school debt free. The wife is an RN, she went to a very good school and racked up 90k in debt.

I'm doing outside sales for the store, and I'm commissioned based. I do pretty well (I like to think so anyway) I make about 60-65k. She makes about the same maybe a little less 55k?

We bought the house in January of this year for 275k It appraised out at about 280 or so. I don't really have equity in the house. We had to creatively calculate my income so the bank would accept that I have income (since they don't trust commission alone) Basically showing that I make 30k salary and 30 so in commission. So even though we make good money, we have to state 30k less, so that hurts our loan potential.

The point in all of this being. We are very stable in our jobs and we are NOT going to be moving any time soon. I hate the idea of taking out another loan on it because I tend to not want to own anyone anything, but at 3% mortgage, you can't turn it down, you can invest and make more money rather than paying the house off earlier.

UPDATE: I just saw my neighbor who just built his house (he owns a construction company) poured a concrete slab outside his house. I went to the county site and saw he had applied for a permit for a detached garage, maybe I'll ask him prices and processes.

I know this is kind of a very vague question, how much(ish) would it be to have concrete poured and a stickbuilt or steel building (just a shell) built? I live in south central wisconsin and kind of a more rural area. My land isn't level, but it isnt mountainous either. Maybe a difference of 2 foot I'm looking at 40x40 ish

I'll post a couple pictures so you guys have an idea on my area. I want it in the north east corner.

Comments, ideas, anything?!?

Thanks guys!

 

[Platonic Solid]

Hindsight being 20/20… You missed a window of opportunity. You should have initially purchased your house with a construction loan for the garage addition, but that’s water under the bridge now.

That being said, it is still possible to do it that way, just not via the big banks. Approach your small local banks with your situation. You might be surprised at what they are willing to do. Paying for your own value added appraisal is a waste of money. Banks only accept appraisals that they conduct. Naturally this all assumes that you have the credit rating and income to support all this.

I would normally agree that more debt is a bad thing, but in this environment of low interest loans, it may actually be a wise move to take advantage of the current financial climate.

It’s very important that you are committed to staying there for a while. Financing property at low interest rates is great as long as you don’t plan on selling any time soon. Interest rates will and are slowly rising. As mortgage interest rates rise, housing values drop, thus it may be quite some time before you have any equity. Reason being that most people (except those able to pay cash) buy houses based on monthly payments. As interest rates rise, your borrowing power is reduced and you could easily find yourself in a negative equity situation. This has essentially no impact as long as you don’t want to sell or borrow.

Though not applicable right now, it’s worth mentioning that even though it seems counter intuitive, the best time to buy property is when interest rates are high and likely to drop. As they drop equity quickly rises.

 

[bczygan]

The idea of pulling a permit and just keeping it alive by doing small work and renewing the permit can buy you time.

And you needn't spend all the money for a complete concrete slab.

Submit drawings for a low height pole barn and install just the posts (A bunch of 4x4's).

Then, after getting extensions, revise the plans to the building type you want, but with the same footprint, so it is the same project, and complete the shell.

Show the building department that you decided to improve the quality of the building.

See if that will sell them on the idea that it is the same project. Call it a change order.

 

[bczygan]

The idea of pulling a permit and just keeping it alive by doing small work and renewing the permit can buy you time.

And you needn't spend all the money for a complete concrete slab.

Submit drawings for a low height pole barn and install just the posts (A bunch of 4x4's).

Then, after getting extensions, revise the plans to the building type you want, but with the same footprint, so it is the same project, and complete the shell.

Show the building department that you decided to improve the quality of the building.

See if that will sell them on the idea that it is the same project. Call it a change order.

You might even do this as part of the initial permit. Show what you want to do on the drawings, and show wood posts as an alternate method. Install them, stall the project, and then pull the posts and complete the main method.

 

[finn]

I my area, I believe permits are good for six months. If no substantial progress is made the permit expires.

I don't think I would be a happy camper if my neighbor had a half-assed "in progress" construction project dragging on for years.

 

[Conner]

Borrow the money from your family. Have a lawyer draw up a loan agreement or find one on the web. Agree on a market rate and monthly payment. That rate is probably above what your old man is earning in the money market anyhow, so he should be happy to make the loan. If you can somehow legitimately make it a home equity loan or second mortgage (you'd have to include the new value of your property with the new garage to "create" some equity), and the rate is above the IRS's minimum rate (which is pretty low right now, you can find it on the web) your interest will be tax deductible. Pay your family every month like you would the bank, and have them sign a statement that describes the interest and principal you paid them at the end of each year to keep on file with your taxes.

Honestly right now your credit is much better with your family, who knows your financial situation and you, than it will be with any formal lending institution at this point in your life. There is no shame in borrowing from your family, provided they can afford to lend and you pay them back. I would make this kind of loan to my son in a heartbeat.

 

[dmw16]

I have never had something like this built, but what does it cost? If you have good credit and good income you could get a signature loan up to $25-30K without too much issue. Then if you can workout a deal with whoever does the work you could pick up a few extra thousand between Home Depot and Lowe's credit cards for materials.

I'd have to think that would get you there.

Probably not the most fiscally sound approach, but if there are time constraints it might be your best bet.

Edit:

I also agree that a family member would be a good option since there are legitimate time constraints and not just "I want it now". Provided they have the means.

 

[Platonic Solid]

I disagree with the "borrow from family" approach. Money and family don't mix. Nothing wrong with letting family know what you're doing and if someone offers - fine (maybe), but I don't believe asking is a good plan.

We live in a rural subdivision which is being devolped right now. If I want to build a shop, I have to do it before 50% of the lots are sold to be grandfathered in. More and more lots are being sold, so I want to act on it within the next year.

Is there specific language in the subdivision regulations that prohibit additional structures on your property once 50% of the lots are sold?

With the current regulations, don't you still need zoning and subdivision regulation approval?

 

[EricP]

Sounds like both of you are early in your careers and will earn decent and increasing wages throughout. If that assumption is correct I'd wager that the house you are in now won't be your last and when you move you won't be able to take your detached garage with you. A lot of time, effort, and possibly money will be left behind when that day comes.

Is building a garage nearby but not on your current premises an option? That would ease your timetable of needing to start the project right now while you still shoulder the burden of student loans.

I recently built a dedicated shop on a rural county lot 10 minutes from my house. My house is in a covenant neighborhood and we will sell it at some point but I don't want to lose my shop or have to start over, not to mention compromise the shop size/layout because of neighborhood building restrictions. With a dedicated shop on a dedicated rural lot (no covenants & minimal codes) I was able to build what I wanted and no matter when/where we move to, my shop and it's contents remains intact plus all the set-up time isn't lost, plus it has future value as a small business location.

Just another option to consider that has long range benefits.

Eric

 

[Playwme]

For those suggesting he will likely move in the next few years, look at the photos of his house. It's not a shack. They could have 3 kids and still loose them in that place.

I think you just need to see your lenders. The shop should add good value to the house, and you seem like a nice low risk couple to lend money to.

 

[finn]

From what I've seen, a shop adds minimal value to a property like yours, and, if I understand your situation, a shop isn't compatible with covenants being implemented as your neighborhood builds out.

It seems that, financially, you just aren't ready to start building a shop now, and adding a non conforming structure may actually hurt resale.

 

[adamcc91]

Thank you everyone! I wish i was better at this forum thing where I knew how to do multiple quotes to address comments, however I don't know how to do that. Anyways.

We are going to be in the house for A LONG TIME. We bought a 4 bedroom 3 bath house, the downstairs is unfinished, so I can do that later if we need extra space (additional mancave)

I appreciate everyone's input, but I'm absolutely refusing to borrow money from my old man, just isn't going to happen.

I know a detached garage doesn't add value, and I know you cpa's will shoot me for saying this, but I'm not building this for resale value, I'm building it because it is what I want.

We both have pretty good credit, I'm right around 735, and she is 760 something. We do have a few credit card offers where they offer free financing for up to 18 months, but even still thats about 7,000? I don't think I want to try to open 2-3 new cards for this, just seems like there should be a better way.

I've never looked at signature loans, I will research that. I don't think I want to half build the building because I don't want to say that we live in a ritzy (sp?) neighborhood, but it isn't a bunch of shacks out here either.

Thanks for the help guys, please keep giving me your input. You're helping me a lot!

 

[S4cruiser]

Lightstream is what the wife and I used to finance a pool / total yard landscaping project last year. 60k loan unsecured at around 4.25%. No collateral no liens no nothing...except exceptional credit and decent income. The whole process was online and funds were wired to our accounts in a couple days.

Super easy and could be an option for you. https://www.lightstream.com

 

[xyster101]

I Built a shell in a 6' hill (added to my cost). Did the work myself and it was $25k for materials and some labor. That is for a 24*46 building not finished.
How much extra cash can you have per month? I paid mine out of pocket 2 months after buying my house with $18k in the bank at the time. I was 33, teacher, wife a vet.

Not for nothing but your finances don't sound too good. Buying a house with so little down means you're also paying pmi each month ($150) which is just lost. You should also be tossing money into a retirement at your young age. Another high interest loan is not what you need.

Im 35 and have been slowly working on my shop out of pocket the past 2 years. See if you can start with a permit and get a shell up for under $20k out of pocket. Then get a CO. That is what I did. Took me 11 months from start to CO, but the town does extensions if you make progress, see if your town does that.

 

[weatherby460]

Lightstream is what the wife and I used to finance a pool / total yard landscaping project last year. 60k loan unsecured at around 4.25%. No collateral no liens no nothing...except exceptional credit and decent income. The whole process was online and funds were wired to our accounts in a couple days.

Super easy and could be an option for you. https://www.lightstream.com

Admirals Bank does the same thing. I will be calling next week to see who gives a better interest rate.

 

[jonjon1]

jonjon you should be a motivational speaker, great concepts. I enjoyed reading that!

LOL, thanks, motivational speaker sounds lie work

Thank you everyone! I wish i was better at this forum thing where I knew how to do multiple quotes to address comments, however I don't know how to do that. Anyways.

We are going to be in the house for A LONG TIME. We bought a 4 bedroom 3 bath house, the downstairs is unfinished, so I can do that later if we need extra space (additional mancave)

I appreciate everyone's input, but I'm absolutely refusing to borrow money from my old man, just isn't going to happen.

I know a detached garage doesn't add value, and I know you cpa's will shoot me for saying this, but I'm not building this for resale value, I'm building it because it is what I want.

We both have pretty good credit, I'm right around 735, and she is 760 something. We do have a few credit card offers where they offer free financing for up to 18 months, but even still thats about 7,000? I don't think I want to try to open 2-3 new cards for this, just seems like there should be a better way.

I've never looked at signature loans, I will research that. I don't think I want to half build the building because I don't want to say that we live in a ritzy (sp?) neighborhood, but it isn't a bunch of shacks out here either.

Thanks for the help guys, please keep giving me your input. You're helping me a lot!

I applaud you for not wanting to borrow, I never borrowed from family, its a bad road to go down... good for you..

Next as far as home values are concerned, of course a nice detached building will add value, how could it not, this is what I do. Some people will say "inground pools dont add value", "detached storage doesnt add value", "integrated sprinklers dont add value", etc etc etc that is BS, the only times them things dont add value is when a buyer doesnt want them, that is it, and if I learned anything over the years building and selling houses, it is that YOU ARE NOT GOING TO SELL SOMEONE SOMETHING THEY DONT WANT...

Simple way to look at it is by my experience, I built developments, marketed, and sold all of them myself, some would get pools, some would get sprinklers, some would get 3 car garages, some 2 cars, they all had a buyer out there...


Quick story for you, I build a house for a gentleman, single guy buying a 2 bedroom home on a 2.5 acre lot, he picked a really cool floor plan, he was the first and only one that ever picked it, 2 bed rooms {both with walk in closets and their own full baths, so essentially 2 masters}, a HUGE kitchen, nice dining room, huge office, formal parlor, living room, a half bath on the first floor, and a 2 car attached garage. Inground Pool, pool house, and a 3 bay double deep garage {28x36 with 12ft walls}...

So we do the entire build, {without land it was over $300K, it was very nice}, he NEVER moved in, his job moved him 600 miles away 2 weeks before completion {months after closing}. So he came to the office and wanted me to buy the house, WHICH NORMALLY I WOULD JUMP AT, BUT I am thinking, WTF, no one is going to buy a 2 bedroom, with a pool, pool house, garage, sure it would be my dream house, but what about my kids and my wife, and that is what most people would think, as I thought...

So he offered it to me for a steal, I didnt buy it, instead I told him I would list and sell it for him for free, he was happy with that so I got it on MLS that day.

With pictures of the floor plan, pictures of the with no grass down yet, and an unpaved driveway, we got SO MANY calls, I was shocked. We listed it at what he spent, which was over 400K total, and I remember thinking, NO one is going to spend $400K on a 2 bedroom house, there is NO WAY. Well I have to admit I was 100% wrong, I was getting asking price offers, I had 3 people that wanted to walk through ASAP.

The house sold for 5% above asking to a couple {in their 50's}, he loved hot rods, she used the big office as a craft room, and they wanted the pool house as a guest house.... I could not belive how easy that house was to sell, and I was so stupid because he offered it to me for $100K less than he spent!!!


So moral of the story, adding a garage will add value, there is no doubt. Think about it, you are looking at 2 houses, 1 has a detached garage and one doesnt, even if you don't need a detached building you are going to pick the one with the building, and if you don't, another thing I learned while in the business is there is an *** for every seat.

Think back to when you were buying that house, if the one next door was $40K more and the had the garage, you would have obviously most likely bought that one instead, correct? so it would have added value...

Good luck with everything, and I would be asking the building department a lot of questions and getting some real answers, also your neighbor who just planted a slab, I would be getting in his ear and picking his brain on what you should be doing...

 

[James-W]

I am a little confused. In you opening post you said, "If I want to build a shop, I have to do it before 50% of the lots are sold to be grandfathered in". Exactly what is it that you need to be grandfathered in for? Is it because the size shop you want to build is larger than will be accepted once more lots are sold? Is it because they won't allow workshops in the subdivision? In other words, if you wait to do anything until a few years down the road and all the lots are sold, what can you do now that you couldn't do later on?

 

[justanengineer]

Not for nothing but your finances don't sound too good.

+1. I'd consider $120k combined given the debts surviving not thriving, and given that both are new to jobs with high turnover, one is dependent on a family business, and the other (at least statistically) likely to get pregnant in the near future I'd suggest the OP seriously slow down, enjoy the 3-car, and build an emergency fund at the same rate theyre paying down debt. Not to be negative, but given the need for creative accounting to get a modest mortgage the bank clearly doesnt believe there is much stability here, and I concur. I'm sure life seems grand and the future set as it does for most younger folks, but reality happens. If it didnt, I wouldnt have been able to buy so many tools and toys at auction, including quite a few NAPAs.