can I get started in homesteading with $5000 or am I just dreaming? thanks, Karen

-- Karen Burrell (caivols@webtv.com), September 15, 2001

Answers

Response to begin to homestead

The most important thing is not to be in debt. If that means working for a while in "da big city" (or even "da bery little city", as I am now), then so be it. If $5K isn't enough, then you need more - but once/when you start it's far better if you never take a step backwards. Note that if you can, and if your aim is to have your own little plot, rather than to succeed in big business, then rent in "da bery little city" is going to be less than in "da big city", and that could mean you can save faster if you're disciplined enough. There is a good chance that you can start learning how by using tub and pot and window-box and plot gardening, growing something, on a balcony or in a suburban backyard. In fact, a suburban backyard ought to be entirely capable of providing a good proportion of what the residents (even a whole family) need. This can also give you a low-cost assessment of whether going further and bigger might work for you.

I have problems saving money, but if you can throw what you already have (or a lot of it) into interest-bearing deposits or certificates or whatever your equivalent is, then I think you're on the way (and yes, that's a start, although not a start right on the land) to homesteading owning your own land. The big trick is never to take on any more debt ever again except for property, and then only what you can support under adverse circumstances (which may require paying insurance, but I've done that - I've used the payments from sickness and disability insurance for a loan to keep up the payments on the loan, and been d__ed grateful I'd taken out the 1% monthly insurance).

My impression is that $5K in your country is probably only enough to cover mandatory fees and legal costs, and that you'd probably need whatever on top to make a deposit, but I'd say that $5,000 is well on the way. I've also read about vendor-finance in your country, but I believe that you can have real problems with that if you miss a payment for any reason - even a good one (say if for some reason the mail is late - can anyone think why the mail might be delayed today?) In fact, some vendors rely on people being unlucky enough to have a late payment sometime in order to re-possess the property again and again and again - be careful out there.

Don't despise the possibilty of buying a small suburban plot either - it may be all you want, but even if it's not it can at least get you off the debt treadmill, and give you a chance for a while to save without paying dead-money interest.

-- Don Armstrong (darmst@yahoo.com.au), September 15, 2001.

Response to begin to homestead

Thanks Don, I hadn't thought of renting a place. That would be better than a city apt. even if it's not mine. Great advice.

-- Karen Burrell (caivols@webtv.com), September 15, 2001.

Response to begin to homestead

It can be done. You just have to be able to mend, fix, and do without all the bells and whistles - and you would have to have a good job and steady income. It is enough for a small downpayment on an acre or two of land (don't let anyone tell you that you can't homestead on an acre or two!!)with either an older mobile home or fixer upper on land contract. You will have to be able to do all the work yourself because that isn't enough to hire ANY work out.

It all depends on you. Some people can do it. Some can't. You have to be able to do without for sometime. You will also find that you greatly under-estimate what tools, etc. you will need for your homestead. If you have been collecting "homesteading equipment", then you could probably do it. If you have to buy a tiller and other Homesteading stuff, then it won't happen and you will be miserable! Just depends on your personality and what you are will to do without. If you are planning on animals, remember, you have to buy them too. Just start out small! I know a lot of people who have done it and done it on less! And recently too! Also depends on what part of the country you live in.

Just remember that a homestead is always a progresion. It is not an end result and the house, barn, animals, garden,-- all of it --- will never be "just right yet"!! That is why some homesteaders fail. They have this picture in thier minds of thier homestead and when it just doesn't work out that way they get discouraged.

I am all for getting the heck out of the cities. If there is anyway and you have the personality for it, do it. You may not have another chance in your lifetime. Life tends to just take over, and before you know it you can't get out.

As far as renting goes, it certainly is an option, but you will lose a good portion of that in first, last and security deposits.

Also, I would definately NOT invest your money at this point! Better cash in hand! CD's ect. are only paying 2-3.5%. Most investments are down. Remember, when the interest rates go down (as they have been and going down more) so the amount of interest you earn on your accounts. On $5,000 that means you are only going to get make in interest around $150 a year! Not worth it -- better getting a better way of life. This is no time to invest in the stock market if this is all the money you have. It is way, way too risky. If you lose -- your dream is gone, probably forever!

I am a just kind of "what the heck, do it" kind of person. You gain experiences. I always think that if I do something, what is the worst that could happen? If you can't make it homesteading how do you make it in the city? What's the worst...you have to go back to the city. But you gained a great experience!

Best of luck and let us all know what happens!

-- Karen (db0421@yahoo.com), September 15, 2001.

See if your local library can get a inter-library loan of Joel Salatin's book on "You Can Farm: The Entrepreneur's Guide to Start and $succeed in a Farming Enterprise." Just scale down this advice.

-- Ken S. in WC TN (scharabo@aol.com), September 15, 2001.

You sure can in Kentucky. You can get a place in the country with an older moblie home for 1000 down. Just make the payments. We have Land Companys that don't care who you are or what kind of credit you have. If you don't make the payments, they just take it back. There are some real reasonable places. After a year of working here, just re-finiance with a local bank. There is still allot of country here close enough to town to work. Our land is still at about 3K an acre.

-- Cindy in KY (solidrockranch@msn.com), September 15, 2001.

Karen, I don't know where you are located but here in the Panhandle of Texas, in some of the small towns land is still cheap. We just bought 10 acres at the edge of town with city gas, water and sewer for $10,000. There is a lot of jobs here but of course the money is not as good as in a larger town. Texas has no state imcome tax and has great people, the best librarys and lots of land. OK is another nice area. Go for it. Bill

-- Bill Porter (porboy298@yahoo.com), September 15, 2001.

I live in Kentucky now too. There are still parts of the state with really cheap land. Same with Maine (where I'll be again sooner or later...) and lots of other places. If you look through http://www.realtor.com you can find reasonable land almost anywhere you go.

-- Uriah (Uriahdeath2@netscape.net), September 15, 2001.

Have you considered caretaking as an interim measure? Contact The Caretaker Gazette, 1845 Deane, Pullman, WA 99163-3504.

-- Ken S. in WC TN (scharabo@aol.com), September 15, 2001.

Countryside carried an article on exactly that subject a couple of years ago. Sorry that I can't recall the issue right off. Maybe some of the other old timers can say quicker than I can search for it, but I'll try to figure out the issue number for you also.

-- Jay Blair in N. AL (jayblair678@yahoo.com), September 16, 2001.

The figure seems a little low, but I guess it depends on what you are looking for! I have seen property here sell for $300-400 an acre but you usually have to buy 20-30 acres for that price. Sometimes there are auctions with smaller plots but it goes for up to $800-1000 per acre. My Dad has purchased a few trailers for $500, nothing fancy but certaily livable. Your big expense could be water, a well is expensive, developing a spring can be costly if the water has to be run for any length. Although it isn't impossible, it would probably be difficult and you would certainly have to spend more in the future. WE spent (11years ago) almost exactly $6000 before we were able to move onto our place. It was very nice to live on our own place, but it was very basic at first. We had electric, ( 4 outlets total) but no hot water, used a cistern for washing, cleaning etc... (cold water!) and didn't even have doors or windows on the place at first. Our house is a 3/4 underground, with concrete floors and 1/3 of it was still dirt when we moved in (we used this as a storage area!) We had 2 children at the time ages 1 and 3. So it isn't impossible but you have to have patience. Now 11 years later we have spent a total of $30,000. We have 16 acres, a 3500 square foot house (5 bedrooms, 2 baths) a horse barn, chicken barn, fruit cellar, wood and equipment storage shed, and a 6000 sq ft garden. This took us literally thousands of hours, and a lot of hard work. We used as many free materials as possible, cut our own pine logs for the interior of our house, tore down barns and buildings, saving siding, beams and slate, built all of our own cabinents, doors and most furniture. We still have many plans like another horse barn, a large green house (we use a hot-bed now) raised garden beds, a basketball court for the kids!, a gazebo and a decorative pond, a patio with a BBQ/fireplace, and a large workshop/garage. But we both love the process of building: trying to find materials for free or low-cost, using things that would probably be thrown away, planning the project, and doing the actual work are all activities that we really, really, LIKE to do. Maybe I am a little off-topic, but the only way to really save money is to do the work yourself and if you are going to be miserable doing it, you might be better off to find a job you love, save the money and let someone else do the really hard tasks and just do the parts you will enjoy. Just a few thoughts! Best Wishes.

-- Melissa (cmnorris@1st.net), September 17, 2001.

I've been thinking about this post for a while, we did move to the country and have a great place, I'm not sure we ever had $5,000 on hand at any time-I'm still not sure how we did it, it was just one step at a time-sometimes those steps seemed excrusaitingly small. We did end up taking out a small morgage to get a roof over our head but we did almost all work ourselves, and used as much scrounged, recycled stuff as we possably could. I hate owing money, but I also think that sometimes its worth the risk in the short run if you feel reasonably comfortable that you can pay it off. My husband is a child/family therapist in an area that is critically short of any type of therapist, so we felt that was a risk we could take. Running up other debt is a different story! And then, we are in Ky -land of the cheap!

-- Kelly (markelly@scrtc.com), September 17, 2001.