New Mortgage or Lake Cottage?

[quadzilla]

The way I see it, I have two options:

1) Get a new house for twice the price where I already live - heck, maybe in the same neighborhood.

2) Find a cottage on a lake in Northern Lower Michigan and put the money into that.

I\'d choose #2, while my wife might be more likely to choose #1 - but you can help with that.

Let me know what you have or know about that might impress the little lady. I\'m looking to spend under $150,000 and would like to be able to pull the kids on the tubes using my 19\' Sea Ray that I\'d keep at the dock. Doesn\'t need to be fancy, but good bones so that I could put some work into it would be great. A little more, a little less won\'t matter - but your help in finding a nice spot is appreciated.

Thanks,

Bill in Midland
quadzillabill@hotmail.com - See More Here: http://www.michigan-sportsman.com/classifieds/showproduct.php?product=1336

[GWPguy]

they don't make land any more. And they certainly don't make any more land on a lake. Any lake front property is worth gold. The value will always be there.

From where you are at, higgins lake isn't to far. Of course being michigan, there are only about 1000 lakes around you to pick from

[Linda G.]

The market up here is falling apart, with the poor economy every where else, the first thing to go is either the vacation home or the hunting land...you'll find lots of good buys in that range, so shop wisely, you can probably get a lot more than you thought you could for a cabin on the lake-land is a bit harder to get, but if you look at it as a long term investment, there's lots for sale right now that has been recently selectively cut (gotta pay the taxes somehow) and now the owner is looking to make more money on it. Most probably can't be cut again for a few years, unless you want to clear cut it and create a whole lot of deer and grouse habitat, but the price should be a bit less. But like I said, shop carefully, there's lots of bargains out there right now if you know which questions to ask.

[Fishfoote]

Well, you could tell her you plan to rent out whatever you invest in - your house or a cottage...I'm betting she'll go with the cottage. Linda is correct on the cottage market, I'm on Hubbard Lake and have seen prices down about 10% from two years ago. I think they'll bounce back, but if you're going to jump in, I wouldn't wait too long.

[Michigander]

Here in the EUP, 35 miles east of the bridge I have seen property really stagnate over the last three years. It is finally starting to move again but at a snails pace. There are good deals to be found if you turn over rocks and really look. Our real estate market is really driven by our summer people from Cinncinatti and Dayton, Ohio and if the economy is bad down there the sales show it here.

[GWPguy]

With the economy the way it is, I don't see the need to rush. I think is going to get worse before it gets any better. I see a lot of bargins coming up in the future for recreational land.

As a selling point for a place up north one argument is: When the interest rates on housing goes up. People who have these $300,000 homes on up are going to have a hard time selling them when intrest rates are at 10% or higher. Who will take on a $3000 a month payment. Not many people can afford that. But you can always sell lower priced land up north.

[quadzilla]

Thanks for all the insight so far.

I would think that the rough economy is hurting the market, so in the short term maybe I do have a window of opportunity to find something decent while some folks are really needing to sell. In Midland where I'm at, housing prices are just about dead even with where they were 7-8 years ago. They hit a high about 3-4 years back, and are now selling for about the same price as they would have in '98-'99.

I sure don't want to tie up a huge mortgage on something like that.

I'd love something at Higgins, Hubbard or one of those well known lakes - but I think for the price I'm looking to spend, its going to be something a little more off the beaten path.

[lwingwatcher]

[QUOTE=GWPguy

From where you are at, higgins lake isn't to far. [/QUOTE]


150K.....are you talking about a different Higgins????



and where do you get 10% interest rates????

[quadzilla]

It surprised me, but I've actually found stuff at Houghton for that amount and a little above - not sure what they really look like other than a picture or two. Obviously, a decent place on Higgins is going to set me back far more and is likely out of consideration in my mind.

[Loosefish]

Nice lake close to you.

Eight Point Lake

You are looking around $190000 to be on the lake.

I had two cabins up there for sale last year. Gone.

All house/cabins are being fixed up on the lake. Send me a P.M. and I will fill you in.

The Market up north will still go, a lot of the money comes from chi-town. Lot's of baby boomers selling houses down state and moving up.

Look at land for the last 50 years and tell me of a bad waterfront investement.

Days of 20% a year might be gone.