I’ve been actively looking for houses in the Bay Area but almost everything in our budget isn’t appealing at this point. We’ve never really been keen on living in a townhouse or tract home with neighbors breathing down our necks but that’s all that’s “affordable” in the area right now and I’m suffering from FOMO that eventually we’ll be priced out of the area completely if we don’t purchase something soon.
If you’re familiar with the area – we’ve been considering purchasing in the Santa Cruz mountain area but our jobs are in the East bay and we’d like to keep our commutes under an hour thus can’t venture out too far.
A lot of the properties in this area are on huge lots which is why we like the area but we also don’t want to maintain or pay for 10+ acres of land. Would it be stupid to purchase a fixer-upper on a 10 acre lot, priced a couple hundred thousand dollars over our budget with plans to subdivide the lot, sell the additional parcels and refinance to an amount we’re more comfortable with paying long term? We could float the larger mortgage temporarily but don’t want to tie up all of our income in a mortgage for 30 years.
We’re first time homebuyers and aren’t experts in real estate. Is this scenario completely stupid to even consider? The property is located about 10 miles from one of the most highly desirable towns in the South Bay. There are other properties/lots off the same road that are 2-3 acres in size and the parcel is zoned “SU” or Special Use if that makes a different. Looking for a reality check if one is due!