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land purchasePosted by Debra Booth at June 11. 2006
A few questions:
How much do septic systems and wells generally run in the north east? We are planning a modest house--1700-1800 square feet. I know that they spec these systems by bedrooms--2 or 3 I expect--though it will probably be 2--. Maybe 1 1/2 bath or 2 if we are extravagant. We are looking at Stow, MA right now--the land of septics and wells.
Also, we have roughly 1/2 of our budget for land and house--should we use most of it and buy the land outright and then use the land as collatoral for the construction loan?
Or, should we use only a portion of our money as a down payment on the land and make land payments--so that we have something as a down payment on the construction loan to become a mortgage once the house is finished? Does this make any sense? Does it matter?
Thanks for any help.
Re: land purchasePosted by Splatgirl at June 12. 2006
Really, I think the answers to your questions are more specific than can be responsibly addressed in a forum like this.
Start making phone calls (and get used to it if you're really planning on building a house). Septic and water issues depend largely on the site conditions, and the contractors in the area are the best source of information specific to where you're planning to build. You'll get tons of good information just by calling around and asking a lot of questions. If you haven't already got a handle on it, I'd start by calling a local geotechnical engineer to help establish that you've got land that will accomodate what you need it to within your budget. I almost learned the hard way how cheap a couple of thousand dollars in land engineering can really be.
With regard to financing issues, start calling around and bank/broker shopping asap(sounds familiar, I know). There is going to be many different ways to finance your project and the more of them you know about, the better deal you'll create for yourself. And start early. The last thing you want is to be forced to make a quick decision.
Re: land purchasePosted by Ed at June 14. 2006
Based on my most recent experiences, on eastern Long Island, which is basically a large sandbar formed during the last ice age that sits on top of a very large aquafir, for my geothermal system I had two wells plus a pump installed for $5485. I would then assume that a single well would be around $3000. However, they only had to dig down about 30 feet. Of course, the deeper you go, the more it will cost. And if you have lots of rocks/boulders to deal with, fuggedaboutit.
The septic system itself will be around $2800 (for three full baths). However, this does not include the hook-up to the waste plumbing. However, again, this may be more in areas with clay or where drainage is an issue.
Regarding the construction loan, I think the bank/lender will pretty much dictate the terms of the downpayments, etc. In my situation, I receive disbursements from the bank only AFTER a certain line item in the construction worksheet is completed. As such, it is definitely to your advantage to have lots of liquidity. Therefore, blowing your stash on the land upfront would not be such a good idea.