Answer: You're obviously a beginning investor, and vacant land is not a wise purchase for a beginner. Buying it often requires all cash. It yields no income and involves holding costs for property taxes and insurance. Even experienced investors can get caught when trying to predict the direction of future growth. That would be particularly true in an area one wasn't familiar with.
If you intend to become an investor, line up your own real estate lawyer and CPA before you start. They can analyze your situation and advise you better than I can.
Condo Questions
To Edith Lank: Question one: I was required by my condo's homeowner association to replace my garage door. This expense was in 2006. May I write this off on my 2008 tax return?
Question two: If I sold this condo at a loss this year, would I be allowed to write off the loss on my 2009 tax returns? -- Via e-mail
Answer one: No. Answer two: No.
That's assuming the condo is your own residence. If you rent it out, take the questions to your tax preparer for more complicated information.
Aid For Disabled
My mother-in-law is currently receiving disability and has a diagnosed traumatic brain injury. My wife and I want to find a single family home in Florida for her to retire to (under $100,000). We have savings to cover a 20 percent down payment, but will need a mortgage. Are there programs for adults with disabilities to have reduced rates or to help them receive loan reimbursement? Via e-mail
Answer: I don't know of any mortgage breaks for the disabled. But the loan (and ownership of the house) will have to be in your names anyhow, unless your mother-in-law has a good credit rating and enough dependable income to carry the payments comfortably on her own.
Combining Mortgages
Dear Edith: Can a mortgage and an equity loan be consolidated into one fixed mortgage? -- K.S.
Answer: Certainly, if the amounts involved work out. You could use one new loan to pay off the two you have now. That will only work, though, if you have enough equity in your property to qualify for the larger mortgage you'd need. And of course you must have a good credit record.