Many people want waterfront lots, and they’ll pay good money for them.
But what about an underwater lot?
A roughly quarter-acre water lot is available in the San Francisco Bay Area city of Alameda, CA, for $400,000.
The listing is quite upfront about the splashy property: “This is a water lot,” it states, adding that the parcel is “an investor’s/developer’s opportunity where location, location is everything.”
However, building in a water lot has its own special set of challenges.
The perfect buyer “is someone who is not afraid of the challenge of being creative,” says listing agent April Jones, with April Jones, Broker.
She suggests there could be “some type of houseboat” here, noting, “There are homes that are currently built in that lagoon already.”
The property assessor’s office in the county lists it as vacant residential land with zoning for a single-family home or a structure with up to four units. The water part wasn’t obvious.
“I was asked to list a vacant lot and went out to take pictures of it and come to find out, it was underwater,” Jones says, adding her GPS took her to a different address. She had no idea that the listing was a water lot.
“I really know how to read street signs to find addresses and kept going when I got there,” she says. “I stopped and said, ‘This is where it should be, this should be the 600 block of Grand.’”
Her next task was to use the county system to view the lot.
“It came up as the water where I was over the bridge, or under the bridge actually, so I was surprised,” she recalls. “I was sure my seller was not aware. He thought he was getting vacant land.”
Jones says the county sold the land because of a tax lien. Currently, there is nothing on the lot, which is near a roadway bridge.
“I’m not sure how deep it is, but it is deep enough that currently where the lot is located, it acts as a waterway or an easement that maintenance workers can go from one side of the lagoon under the street bridge to the other side of the lagoon,” Jones explains, adding that the seller “bought it as an investment for his family. He had been trying to buy land or property since 2014 and said he thought this was a good deal. I’m just hoping to find buyer, so at least my seller can recoup what he put into it.”
Homes nearby are selling in at least the $1 million range.
“It’s a very desirable location,” Jones notes. “It’s near the beach, near shopping, and good schools. There are some nice parks. The lagoon area is peaceful. If you live on the lagoon, you could walk out and have a cup of coffee. It’s just relaxing.”
Jones notes that the buyer will need approval from various agencies before building, but it has potential—for someone who has the money, creativity, and patience for the project—to build something as unique as its locale.
“It’s a lot that is really underwater,” Jones muses. “You don’t come across those very often, so it’s one-of-a-kind.”
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Shortly after graduating from New York University with a Master’s degree, Melanie Lockert turned to food stamps, as she worked her way out of $81,000 in student loans.
“There were a lot of emotions around carrying that debt. It caused a lot of stress and depression and anxiety for a long time,” she shared with me recently during an interview on my podcast.
The student loan crisis in America has reached epidemic proportions. With households across the country carrying $1.26 trillion in student loans, it is the second largest category of debt following mortgage debt.
For the class of 2016, the average student loan balance is $37,172, up six percent from the previous year, according to a new analysis by student loan expert Mark Kantrowitz published in the Wall Street Journal.
If you’re struggling to make ends meet due to student loans or wondering how you’ll ever pay off the debt in a timely manner, here are some key steps to support you along the way.
Never Pay Late. Ever.
Whoever likes to call student loans “good debt,” has probably never faced a late payment. “Falling behind on payments can cause federal loans to enter default, triggering expensive fees and collections,” says Heather Jarvis, attorney and student loan expert.
If you miss several payments and are in default, federal loan borrowers may also seize your wages, tax refunds and possibly social security benefits. And you can only imagine how all this can damage your credit score. (Keep reading for advice on what to do if you’re already in default.)
To avoid ever paying late, sign up for automatic payments with your lender. Doing so could also earn you a reduced interest rate (usually 0.25%), which could save you hundreds of dollars, maybe more, over the life of your loan.
Extend the Term
Speaking of your loan’s life, extending the term from 10 to 15 or 20 years could provide you with some payment relief since when you extend the term, your monthly payments decrease.
Bear in mind that since your interest rate remains the same this strategy may mean you’ll end up paying more to pay off the loan over time.
One way to avoid paying too much more interest is to take advantage of the smaller monthly payments for only a window of time. As soon as your finances strengthen place more than the monthly minimum towards your balance to help you get out of debt closer to your original term. Be sure to place extra payments directly towards the principal to knock down the debt even faster.
Tap Government Assistance
If you have federal student loans you may qualify for Income-Based Repayment (IBR), a government program that helps qualifying borrowers cap loan payments to a percentage of income, typically 10% of their income. The program will also forgive any remaining student loan debt after 20 or 25 years of making payments.
The Department of Education also has a program called Public Service Loan Forgiveness (PSLF). If you work full-time for a “public service” employer such as not-for-profits, AmeriCorps or PeaceCorps, the military or a government agency, PLSF may forgive your remaining federal loan debt after 10 years of employment.
If You’re Already Behind…You Have Options
If you’re in default, Jay Fleischman, a student loan and bankruptcy attorney, says you may be able to consolidate your loans under the U.S. Department of Education’s Direct Consolidation Loan Program, which is free and does not depend on creditworthiness. “You could also rehabilitate by making nine agreed-upon monthly payments over a 10-month period of time with the collector assigned to the account. Those payments may be adjusted based on your income, and payments can be as low as $5 per month,” he says.
For private student loan borrowers, “the situation is markedly different because there is no right to consolidate or rehabilitate unless the lender has a specific program to do so,” says Fleischman. Contact your loan servicer and learn about ways you may be able to reduce or eliminate payments until you get back on your feet, he says.
If your lender won’t budge, you may choose to remain in default until a settlement opportunity presents itself or until the statute of limitations for collection expires. As a last resort, you may also consider bankruptcy as a way to wipe out other debts and repay your student loans under court supervision. “Though bankruptcy may not wipe out your student loans except in limited circumstances, many people opt for bankruptcy as a way to get more control over the ways in which your loans get paid,” says Fleischman.
Tap Home Equity…With Caution
Homeowners may be eligible to use a home equity line of credit (HELOC) to pay off their remaining student loan balance. This allows them to pay off the student loan with the existing equity in their home and save money if the HELOC has a lower interest rate than the student loan.
There’s also a new program offered by online lender SoFi called the Student Loan Payoff ReFi that allows some homeowners to pay down student debt using their home’s equity. SoFi refinances the total amount of your student loans and existing mortgage at a lower rate. Through that process your student loan balance is paid off directly to the loan provider.
To qualify, SoFi says borrowers need healthy credit scores (check your free credit score to verify you qualify), a debt-to-income ratio that’s 45% or less (calculate debt-to-income ratio to see if you fall under this number) and a loan-to-value ratio that’s 80% or less (meaning you can’t be underwater on your mortgage). You can calculate your debt-to-income ratio with Turbo, and
Just keep in mind that when paying off your student loans with home equity – be it through SoFi or another lender – if you default on the consolidated loan the lender has the right to use your home as collateral and foreclose on the property. It’s a serious risk if you don’t have enough in savings or stable income to help you get by during tough times.
Remember to Deduct It
Student loans are no fun, but paying them can yield lower taxes. Each year the IRS lets borrowers deduct up to $2,500 in student loan interest from their taxable income.
Maybe Your Employer Can Help?
A growing number of companies are helping employees squash their student loans as an added perk like a 401(k) and health care.
Gradifi is a Boston-based start-up that’s working with over 200 employers to set up its student loan pay down plan, including PriceWaterhouseCoopers.
It’s a trend that’s likely to grow over the years with more than 50 percent of student loan borrowers saying they would rather receive student loan benefits than heath care from their employer.
Start a Side Hustle
While it’s important to cut back on spending to make room for paying down debt, that move alone isn’t always enough. “Pinching pennies and cutting back is really useful as an initial strategy, but at some point, there’s only so much you can cut back,” says Lockert, whose now chronicled her debt payoff strategies in the book Dear Debt: A Story About Breaking Up With Debt. Through a series of side hustles over the years, including housecleaning, event assisting and pet sitting, earning $10 to $50 per hour, Lockert managed to not only afford her living expenses, but also erase five figures worth of student loan debt.
Depending on your interests, you can find relatively easy gigs at sites like TaskRabbit, Tutor.com, GigWalk and Care.com.
Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at [email protected] (please note “Mint Blog” in the subject line).
Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.
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You wouldn’t expect to see a log cabin in the Chicago suburbs, but one is there, and has been since 1920.
“It’s an actual log cabin, and it’s kind of smack in the middle of downtown Des Plaines, IL,” explains listing agent Daniel Cartalucca, who’s with Coldwell Banker Realty–McMullen. The log home is located about 20 miles outside of Chicago.
Most likely, a log cabin would have looked a little more at home in the era it was built.
“Probably when it was built, it was mostly farmland surrounding it, or maybe a few single-family homes, but mostly farmland,” Cartalucca explains.
The 2,600-square-foot log home is listed for $472,000.
A tale of taxidermy
Cartalucca says a former Cook County sheriff, who also happened to be the coroner, built the home and had quite a large taxidermy collection.
“The taxidermy count is down to about five, and there used to be a standing giant black bear with his paws up,” he says.
However, the next owner can expect a buffalo head, an elk, a ram, and more that convey with the home.
The home’s heavy front doors open to a two-story atrium.
“Every time I go in, you can feel the history. It’s amazing,” Cartalucca says. “There’s a giant sweeping staircase going straight up, and everyone that comes in does the same thing. You can hear them sigh. It definitely elicits a response.”
Rustic rooms
The home has two bathrooms and four bedrooms, including a suite on the main floor. The living area features a river rock fireplace.
Cartalucca says everything works, but the buyer might want to do some updates, like adding a dishwasher. Currently, the dishes are cleaned in a cast-iron farm sink.
“Inside it has sort of stuccoed walls in some rooms, and in some places, there are still log walls on the inside,” he says. There are many original wrought-iron items like hinges accenting the logs.
“It’s surprisingly quiet in there. You don’t hear trains. You don’t hear airplanes. The logs are so dense and heavy that they muffle any exterior noise,” he adds.
The current owner has had the place since 1996 and has listed it for sale several times.
“Originally it was surrounded by commercial property. It has an 8-foot-high privacy fence, which is nice, and the backyard has probably 20 trees and is like a private little forest back there,” Cartalucca says.
The home is in an area with commercial and residential zoning, and the listing says it could be a vacation rental, antiques store, or something else.
“We’ve had a few young couples look at it, and they liked the cool factor of it,” Cartalucca says. “It’s not a typical house.”
When Adrian Burton Jovanovic needed to repair the old roof on his house, he seized the opportunity and created a roof deck topped with a beautiful solarium.
In many ways, graduating from college feels like freedom. Freedom from pulling all-nighters to finish that research paper. Freedom from assignments that make you ask yourself the question, âAm I really going to apply this in real life?â Freedom from the antagonizing and omnipresent pressures of keeping up your GPA. But financially, graduating has felt
The post My New Financial Reality in the âReal Worldâ appeared first on MintLife Blog.
September is not only time to go back to school, itâs National College Savings Month making it the perfect time to think ahead and take steps toward saving for the kidsâ college education. After all, tuition, which has increased faster than the rate of inflation for decades now, is among one the biggest expenses families
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