Building a House...Good Investment?

[Big Steve]

In April I am taking a LOA(Leave of Absense) from work to get started building my house back in Mississippi. My aunt and uncle are coming from Michigan to stay with my mother for a few months,(my uncle will stay longer). My uncle is a contractor and builds $1mil+ homes in Michigan. His business partner will be handling the homes in Michigan while he builds my house. I have 4 acres of land about 15 minutes from my mother's house.

This is the house that I am building...(I know kinda gay but...)






In addition off the back deck will be a large back patio, approximately a 30,000 gallon Koi pond with a waterfall and large flower garden.

All total it should run about $200,000-250,000 for home, pond, and landscaping.(Obviously I am saving money with my Uncle in charge of the house).

Now the questions....

Would it be better for me to pay it in full or finance part of it.

I am debt free but my credit sucks... See Post Here.

Would this help get my credit back on track to finance part of it?

What about paying it in full and then getting a small equity loan?

Anything else I need to know?

Big Steve [img]/images/graemlins/cool.gif[/img]

[Statutory]

If you have enough money to pay for your house why do you need credit?

Isn't a mortgage the primary debt people carry?

[Big Steve]

[ QUOTE ]
If you have enough money to pay for your house why do you need credit?

Isn't a mortgage the primary debt people carry?

[/ QUOTE ]

I don't need credit. I would like to better my credit score. It is a sad situation when someone has a net worth of over 500K and would probably be turned down for a loan to buy a Kia. That is the point I am making. Would a partial finance even 20% be "credit benificial"? Or should I just say [censored] it and wait the 7 years for my bad credit history to be erased?

Big Steve [img]/images/graemlins/cool.gif[/img]

[debater]

Financing any portion of this house will have little impact on your ability to get future credit (unsecured especially) in all but the most unusual of circumstances.

In fact, it would open you up to creditors getting a judgment against you and applying it to your home.

All your bad marks will go off your bureau in 7 years after the last activity. (Chapter 7 BK is 10 years) If you are close to this cutoff, then it would be wise to take out a HELOC on this property to begin re-establishing your credit file. One of the primary score enhancers is the length of time your accounts have been on file. (So do not close or ask to remove any accounts that are not bad...In fact, you should use them minimally to keep them on your bureau)

Debater
(Banker for 14 years)

[Groty]

If you ultimately paid the unsecured creditors in full, some or all of them may be willing to remove the adverse information from your credit file. It's worth the call.

However, if you never made an effort to get current and stiffed them, don't waste your time.

[prohornblower]

This is a strange thread.

Is it a brag about your net worth and uncle building a home for you?

A beat about your poor credit?

Or variance about the design of the home you want to build?

It seems sort of all over the place.

[meditate89]

Good post prohorn =)

If you can get a bank to lend you any money at 6-7% whether through a regular mortgage or a HELOC, you should definitely take it, since this rate isn't much higher than the inflation rate.

I don't know how you accumulated your net worth, but if my NW was 500,000 , I would not want to tie up 1/2 of it in a house. Leverage is your friend.

Where do you work/ How secure is your job? How much $ do you make? ( i'd feel uncomfortable asking this second one, but you alrdy told us your net worth so.. /shrug )

[Big Steve]

[ QUOTE ]
Good post prohorn =)

If you can get a bank to lend you any money at 6-7% whether through a regular mortgage or a HELOC, you should definitely take it, since this rate isn't much higher than the inflation rate.

I don't know how you accumulated your net worth, but if my NW was 500,000 , I would not want to tie up 1/2 of it in a house. Leverage is your friend.

Where do you work/ How secure is your job? How much $ do you make? ( i'd feel uncomfortable asking this second one, but you alrdy told us your net worth so.. /shrug )

[/ QUOTE ]

Nothing special about my net worth. I won an injury lawsuit.

Big Steve [img]/images/graemlins/cool.gif[/img]

[APXG]

[ QUOTE ]

Is it a brag about your net worth and uncle building a home for you?


[/ QUOTE ]

500k networth is a brag?

[mike_matusow]

can u explain what a brag is?
Have never heard of it?