I am currently working on three transactions where relatives are helping the younger generation get into their first homes. I am excited to see this as we are all aware that rising prices in Wenatchee, Leavenworth and Chelan Real Estate markets are making affordable housing for first time homebuyers harder to find.

I recently posted on Geordie Romer's  Leavenworth Real Estate site about using gift money.  However, two of my current transactions involve a relative who bought some land a few years ago,selling the property to the kids at a reduced price and gifting some of the equity to the younger buyer to have their first home built. The net effect is the equity counts as the buyer's down payment for their construction loan and the first time homebuyer ends up with a lot of equity when the house is complete.

It made me think that even though lot and land prices may seem high compared to the recent past, our kids will be very thankful a few years from now if we picked up some dirt at today's prices.

You need to find a good lender who can advise you on the best land financing options. For some people a Home Equity Loan is the best way to go, for others I suggest fixed term Adjustable Rate Mortgages (3 yr, 5yr or 7yr ARMs), and I have others on a 30 year fixed land loan.  Some sellers also offer good financing, so check out your options.

 With 80+ percent of Chelan County held by the government, and plenty of beautiful mountain slopes,  there isn't much buildable land to go around, and remembering your supply and demand curves from Econ 101, that remaining small amount will likely continue to be bid up.