Caveman Joe, that sure looks like a nest set up you got there. Any chances of sharing some pictures with us? What do you have for power? Did you set up a septic system or are you using an outhouse (I'm guessing being in a Dave that could pose challenges). Any more info you'd line to share would be great.
I have been weighing some financial options as well, trying to get things right the second time around (just finishing up a divorce and selling the house - which is a relief). After it was all said and done I have enough cash for a down payment on a mortgage (my budget is $160,000). I don't want a mortgage as it is long term debt, costs upwards of $40,000 in interest overall (wow, what I could do with 40 grand) and is least flexible for significant unplanned life changes.
The other option is a $50,000 loan that I could pay off in 5 years provided I find a solution where I can jump off the grid. I was thinking I would be able to find land and build a basic home for that budget, then continue to finish and add on to it as time passes. I've found out, that this option is more difficult than I thought. The land I like is 1.4 acres and it's on the edge of a conservation area, the property is zoned agricultural which can have a single family dwelling. I called the conservation authority and they had no issue with my plan providing I had a building permit for the home. In order to get a building permit, I had to have an approved septic plan. I told them I wanted a Class 2 greywater system and use a composting toilet, they didn't turn down the idea, but they said the greywater system would cost about the same as a class 4 septic system and the greywater system is restrictive on volume of wastewater. I looked up the building code and they were right. With the greywater system, I could have 3 faucets and laundry waste is not permitted. So, going with a class 4 septic system, this was the cost breakdown:
Land: $20,000
Closing Costs: $1,000
Drilled Well: $3,500 (25' of sand/gravel/clay & 25' of limestone) - checked surrounding well records
Septic (class 4): $15,000 (must be installed by a certified contractor)
So, almost $40,000 and I'm not even at the structure of the home yet. There is still building permit, house plan and site plan fees on top of this.
Even if I purchased a trailer on credit, I would still need the septic for them to approve it, and then it's more debt, it just keeps adding up.
So, it looks like i might be following the herd with a mortgage, there as some houses with 5 acre lots i'm going to be looking at, I'll just have to reduce my cost of living as much as possible to pay the debt off faster and be more stable if the SHTF.
Any ideas are welcome 🙂
Dave,
You would find that most people don't consider mortgage a debt. Whether this is right or not is irrelevant. The problem with mortgage is when people become house poor or borrow for a ridiculous period of time. If you think you could borrow $50k but have no house to show for, the banks will probably be reluctant to lend you that mo sy because they get little in collateral, or they will offer you a personal loan with a significant interest rate. Seems like you have a good plan but that it is costlier than first imagined. Maybe borrowing $100K may be more reasonable and if you shop for a good rate, repay bi-weekly accelerated and are disciplined with payments, would not get anywhere near the $40k figure in interest you mentioned (frankly, mortgage rate are ridiculously low right now).
I have been weighing some financial options as well, trying to get things right the second time around (just finishing up a divorce and selling the house - which is a relief). After it was all said and done I have enough cash for a down payment on a mortgage (my budget is $160,000). I don't want a mortgage as it is long term debt, costs upwards of $40,000 in interest overall (wow, what I could do with 40 grand) and is least flexible for significant unplanned life changes.
The other option is a $50,000 loan that I could pay off in 5 years provided I find a solution where I can jump off the grid. I was thinking I would be able to find land and build a basic home for that budget, then continue to finish and add on to it as time passes. I've found out, that this option is more difficult than I thought. The land I like is 1.4 acres and it's on the edge of a conservation area, the property is zoned agricultural which can have a single family dwelling. I called the conservation authority and they had no issue with my plan providing I had a building permit for the home. In order to get a building permit, I had to have an approved septic plan. I told them I wanted a Class 2 greywater system and use a composting toilet, they didn't turn down the idea, but they said the greywater system would cost about the same as a class 4 septic system and the greywater system is restrictive on volume of wastewater. I looked up the building code and they were right. With the greywater system, I could have 3 faucets and laundry waste is not permitted. So, going with a class 4 septic system, this was the cost breakdown:
Land: $20,000
Closing Costs: $1,000
Drilled Well: $3,500 (25' of sand/gravel/clay & 25' of limestone) - checked surrounding well records
Septic (class 4): $15,000 (must be installed by a certified contractor)So, almost $40,000 and I'm not even at the structure of the home yet. There is still building permit, house plan and site plan fees on top of this.
Even if I purchased a trailer on credit, I would still need the septic for them to approve it, and then it's more debt, it just keeps adding up.
So, it looks like i might be following the herd with a mortgage, there as some houses with 5 acre lots i'm going to be looking at, I'll just have to reduce my cost of living as much as possible to pay the debt off faster and be more stable if the SHTF.
Any ideas are welcome 🙂
Hey Dave,
That's practically the same situation that i found/find myself in ...when i decided that it might be best to do this with other folks who have a basic agreement as to lifestyle/values, etc. and can afford to do it all , better than any individual or few.
I don't know if you're interested in such a scenario,and/or a different location than east Ont., but if so, feel free to PM me.
Alternately, here is a hint : http://www.kijiji.ca/v-land-for-sale/north-bay/tiny-house-ecovillage/1050061234?enableSearchNavigationFlag=true