Quote:
Originally Posted by 67ChevyRedneck
I would love to make my entire backyard one big shop, but I think what I'm going for will work. I'll always want more. 5 cars is my limit, it's enough just to keep 4 of them going (one is a project car in pieces.)
Without getting too personal, we have no car payments and are in "year 20" on our 30 year mortgage after 8.5 years. I have been extremely frugal and diligent with our finances over the past 10 years. Again, without getting too deep, we have enough in just savings to pay for the entire shop, but it took us a long time to get to that safety net and I'm not going to pull from it to build something that I want, not need. I have a 2015 Z71 Silverado I bought brand new and paid off after 18 months, a 65 Mustang that's worth 15-17K, but don't want to sell - wife loves that car, so again, I appreciate the concern, but I'm really just looking for the best loan options at this time 
That said, everyone has given some great options, and I love all the shop pics! I wish my land was more spread out, but it is what it is. It's amazing I have an acre "in town" and NOT in an HOA  When I get some people in, I'll see if we can squeeze that 28' to 30', but it's gonna be tight. I think we only have a 5' side yard requirement in greenville county, so I can get pretty close to my neighbor, but I also don't want to be an ass, they've been great neighbors. Again, this is more about the time than the money, I've pushed this off for at least 6 years, flat out sick of waiting. I want to build my firebird. |
It looks like you already know how to pay for it. I'm sure you know, but make sure when you are making those extra payments on the house that money is going to principle.
A line of credit renews annually. In a situation like this I always get a line of credit for the full amount of the property, and then just borrow what I need. This allows me to get more (the shop) if I need it. Remember, if you do it this way, get the LOC for all the property is worth. That will let you place some of your nest egg toward principle, but it's available if you need it.
the LOC has to be renewed every year, but somehow that puts pressure on me to pay it off. The interest rate is likely to change year to year, but you are on track to pay it off in 10 years anyway. If you pay that $150,000 off in 10 years you will save enough interest to pay for the shop.
I grew up in the homebuilding business. My wife and I built, sold, built, sold and had our house paid for when I was 28 years old. I have had a line of credit on my houses ever since. Seldom do I owe anything, at least for very long, but I have the money available if I need it fast.
I don't owe anybody anything, but I have a line of credit on everything I own.