Well no, it’s not that difficult - if you set it up properly at the outset. Which will require a good property lawyer to draft the initial lease(s) and probably couldn’t be done on the cheap. Even then you may run into problems down the track if one of the parties want to sell up or dies, with much more problems if the arrangement isn’t well thought out at the outset.
Semi-relevant aside: There are a lot of leasehold houses in my area, with the land owned by the Harbour Board and the lease and building owned by the householder. I wouldn’t buy one personally, it adds an unnecessary complication in my view. A lot of the tenants are also being stung by large rent increases as well (most have a 21 year rent review term) as land prices have increased so much in the past few years.
As the website says, the price is just for the exterior shell. You still need to insulate, add interior walls, plumbing, wiring, etc. What will all of that add to the cost? I think you will find it difficult to build a new house for $30,000. On the other hand, you might be able to find an existing house in a city like Detroit or Buffalo for that much money.
Well, if you are content living in a SHED, that’s one thing. But once you start talking about utilities, you have to deal with the county. And despite what was done in the past (reference above and the “99 year lease”), what is the law TODAY is what will mandate your ability to get a permit.
If you try to hook up to the water/sewer/power that the main house has, THAT owner is the one who has the most to lose. The city/county can cut off their utilities.
Then there’s the mess with the land ownership. If you want to totally avoid subdividing, you’ll talking about a percentage ownership with the original lot. Should the original owners have a mortgage, the bank may not like any fiddling around with the deed.
And as others have mentioned, YOU might have trouble getting financing for building your house.
You can run an ad on Craig’s List, or whatever, but I doubt you’ll have any takers. Should there be SOMEBODY out there who shows an interest, you’re gonna get slammed with the permit stuff I mentioned before.
If communal living is something you like, find an existing entity and buy into that. If you wish to start your own commune, get a LOT of money, and find a good real estate attorney.
~VOW
you can share property ownership both LLC and partnership. both have advantages. read enough on them to make a decision or you can understand enough so to get assistance from someone.
You’re just adding another layer of complexity which increases the potential for mistakes and probably the set-up cost as well if you go down that road.
I think some of the respondents in this thread are of the opinion that the entire country is like their own tightly regulated suburban municipality, particularly all the dire warnings about permits and subdivisions. But informal land leases, casual subdivisions, or parcel divisions are quite commonplace in rural America. A willingness to even inquire about things like building codes will be such an unusual display of good will that it will endear you to the county inspector. Bamberg County’s Steps Needed for Building a House (PDF) is all of 140 words.
I live out in the middle of nowhere. But nowhere happens to be located in Apache County, and by God, you better get your permits before you do ANYTHING.
The lot is completely unimproved, except for a dirt road access. Want water? Hire a well driller. You should see the paperwork the driller needs to complete and send in! And his work better be to code, with the concrete lining, mortaring, etc etc etc.
We had the well and not much else, save a small travel trailer. Early one morning, there was a “knock knock” at the door. The County Assessor wanted to know where the house was that he had paperwork for.
We moved a mobile home to the property. Before it could be transported, we had to complete the paperwork for mobile home permit. And on that permit, there was a space to put the number of the septic permit.
Permits are a source of income for a county. Even a tiny county will have people to chase down folks to make sure all the permits are in order.
Maybe you don’t need one for a yurt, or something considered to be “temporary.” But most people like their creature comforts. I happen to appreciate running water, flush toilets, and of course, my internet.
~VOW
That’s a bit disingenuous isn’t it? Let’s look at what those 140 words are:
[QUOTE=Bamberg COunty]
STEPS NEEDED FOR BUILDING A HOUSE
Take a copy of the deed or plat and the tax map number for the property to the
Health Department and apply for a septic tank permit, even if there is an existing
tank.
Go to the 911 office to get an address for the new home. You will need an address
form from 911.
Forms you will need to bring to the Assessor’s Office for Plan Review:
a. Contractor’s License number
b. Copy of Blueprints for Building Inspector
Allow 7 days for a residential review and 14 days for a commercial review. The
Building Inspector will call to inform you if the plans have passed review
Forms to bring to the Assessor’s Office for Building Permit:
a. Septic Tank Application signed by DIIHC
b. Cost of Total Job
Take permits to the Electric Company.
Call the Building Inspector for all inspections 803-245-3111.
[/QUOTE]
I count two permits (septic system and building permit), one application (to 911 office) and one building inspection. Note this is after you’ve gone through the subdivision hoops to get a ‘deed, plat or tax number’ for your lot.
It’s hardly the “secure right to occupy land; build house” system you’re implying.
We’re so off-grid, we have to drive for miles to wave at a power pole.
Two ways to do it off-grid.
(1) Buy a book. Forget about plugging in your TV, your blender, your computer, or your electric blanket for a while. (maybe a LONG while) Build your own system bit-by-bit. Warning: screwups are horribly expensive.
(2) Hire an electrician. This option DOES cost more.
Solar electricity setups are eligible for dandy rebates and credits on your income tax. Guess which plan is applicable for those rebates/credits?
We also checked into a nice little arrangement where ALL the goodies are contained in a trailer. You buy the trailer, the manufacturer will deliver it to your property, and park it wherever you want, take the wheels off, and make it a permanent fixture to your land.
Oh, you need to find a LOCAL, LICENSED electrician to wire it to your house.
It may not be up to code in your state. You’d need a LOCAL, LICENSED electrician to check it out, and bring whatever up to code, before the LOCAL, LICENSED electrician can wire it to your house.
We know of some do-it-yourselfers who assembled their own solar/wind home electrical systems. Both got hit by lightning strikes, and EVERYTHING got fried, including every electrical appliance and device that was plugged in.
~VOW
There are many places in this country where you can buy an already-built house, on land that you will own completely, for under $30,000. Or buy land and build for under thirty grand. Or buy cheap land for about a grand an acre and set up your own comunity.
Why the reluctance to own the land? Seems to me you are making this more difficult than it needs to be.
Yeah, it sounded a bit fishy so I had to have a look.
Another example, my brother-in-law is building a house about 40 minutes from the nearest town, and he’s going through approval hell at the moment. His plans were all done and sent in back in October and has only just got building consent this week for the house. Council approval fees so far are about $5,700.
This is for a bog-standard owner-occupier situation though. I imagine it only gets worse when you have an unconventional ownership structure. I imagine you’d need to get proof of landowner approval for various steps for example.
You might want to check out the Tiny House movement (OK, not really a “movement” … more of a “concept”) as described in this July 25, 2011 article in the New Yorker. The abstract, while accurate, doesn’t do the whole article justice. And yes, county regulators can be a problem, but not an insurmountable one … especially if you’re willing to move your Tiny House in a pinch.