A little bit ago I wrote about my credit experience, where I want to be and how long I have been working on it. Alongside working on my credit I have been house shopping too. It is crazy to see what’s happening to the market right now! Two instances of how horrible the market is, both are in the same time frame of the past 3-6 months;

#1 a new townhouse development I saw was starting out at $799k, I drove past a billboard and now they are selling for $599k.

#2 the house I want for my family when we first say it about 4 months ago was selling for $2.6mil, I receive an email from the agent and it’s now going for $1.9mil!

After seeing the drop in prices over the past 6 months I am glad my credit wasn’t right to purchase because I would have jumped into a house and lost value in the months to come.

My plan now, I found some government auction raw lands and have been searching around for just a raw piece of land. I found a few 20 acre lots for sales for less than $15k, after talking to a raw land loan company I think buying a lot is my best bet right now. With a 12 year loan at $15k and 10% interest which is high, my monthly payments would be less than $200 a month. I ride out this mortgage for a good year and I know my credit will go up and it’ll show I have been paying on a mortgage for a solid year, never late while everyone else is in foreclosure. My thoughts are ill be at the top of the credit curve and look better in the eyes of a lender. Heck, one lost I found was selling in auction for $40k and it had a land value of $175k… buy it for $40k, sit on it for 6 months and sell it for $90k. That’s a few thousand closer to a dp and a mortgage shown paid off!

These are just my thoughts, if you have any comments or questions on anything I write feel free to ask!