I thought that this image was great:

Picking a piece of property to build on is a hard task. A few pointers my husband and I have compiled that we think are important in the hunt are:

1. Talk to the Planning Department about zoning ordinances, and get a copy of the zoning ordinances

2. Examine the access roads if you’re heading toward the country. Can you get through in the winter? Do creeks need bridging? Landslide potentials or possible trees that might tip? Oh and who OWNS the access roads?

3. Look at surveys and topography maps. Get a survey.

4. Research utilities. This is the biggie. Internet access? What about power? The line itself costs upward of $6-$10/ft. Then you have to burry it. What about water? Is a well feasible? And sewer/septic. That’s a fun one. These issues are so huge in price that it can make the difference between a good investment and a horrible burden.

5. Check for existing easements* (like access roads, power lines, mining rights, etc.)

6. Look for any liens–voluntary and involuntary

7. Any restrictions placed by previous owners that are on record? (Like “thou shall not build a house here ever”)

8. Who holds subsurface/mineral rights? Check for timber and hunting rights, too.

9. How close are you to large operations like airports, slaughter houses, chemical plants, active mines, and polluted/superfund sites? These things can have a huge impact on the enjoyment of your property. If you’re really lucky, an aerial flight in a small plane or helicopter can show you everything you need to see. Otherwise, check out aerial photos.

*An encumbrance is any right or interest in land that is possessed by a person who doesn’t hold title to the land. These rights can lower the value of the owner’s estate, so you want to check on them. Lucky for us, this task is typically pretty easy; the title company does the labor. An encumbrance doesn’t prevent you from enjoyment of your property or the ability to transfer it.

Good luck with your hunt. Or in most cases right now, good luck with the dream!

Jeffrey Strain at TheStreet.com pretty much sums up the reason most people don’t have wealth: it’s not because we don’t make enough money; it’s because we don’t treat money on a day-to-day basis very well. Check out the ten poor habits he’s narrowed down as our reasons for low wealth:

1. You Care What Your Neighbors Think: If you’re competing against them and their material possessions, you’re wasting your hard-earned money on toys to impress them instead of building your wealth.

2. You Aren’t Patient: Until the era of credit cards, it was difficult to spend more than you had. That is not the case today. If you have credit card debt because you couldn’t wait until you had enough money to purchase something in cash, you are making others wealthy while keeping yourself in debt.

3. You Have Bad Habits: Whether it’s smoking, drinking, gambling or some other bad habit, the habit is using up a lot of money that could go toward building wealth. Most people don’t realize that the cost of their bad habits extends far beyond the immediate cost. Take smoking, for example: It costs a lot more than the pack of cigarettes purchased. It also negatively affects your wealth in the form of higher insurance rates and decreased value of your home.

(for descriptions of the following, check out his complete article)

4. You Have No Goals
5. You Haven’t Prepared
6. You Try to Make a Quick Buck
7. You Rely on Others to Take Care of Your Money
8. You Invest in Things You Don’t Understand
9. You’re Financially Afraid
10. You Ignore Your Finances

A lot of people love satelite TV, and I can understand why. What I can’t understand, though, is justifying such an expense every month.

I was looking at a row of houses built by Habitat for Humanity and started wondering. I’m not here to make judgment calls about these people’s habits, but I plugged in some numbers you and your friends might want to think twice about.

If you paid an additional $50 toward your mortgage every month, a thirty year mortgage could be paid off in 24 years! (I assumed a 7% interest rate, which is higher than you want for your own home.) 24 years!

Think about what a few extra bucks each month could do to any loan. Interest is a powerful thing, especially when it works to your advantage. Know of any other powerful examples?

(NOTE that some lenders don’t allow prepayments without penalty, so read the fine lines of the contracts you have signed.)