RE: How would you spend it?
I would say get the most land you can, and a modest house. I agree, you can fix up, or add on to your home later.
In fact, that is what I did a few years ago. I bought 41 acres, and built a nice one level home that I could afford. They aren't making any more land, and it ain't getting any cheaper. I wish I would have bought more....but hindsight is 20/20.