I go with Bill and Brian. In one of our previous homes we had a serious problem with termites, so I'm very nervous about the little buggers and now we live in termite hell! Ah well. We have bi-annual termite checks and I don't like any old timber, or timber by-products anywhere near the house, so I would be going gravel. Incidentally, when looking at buying a house, I like to look at properties in winter. This usually shows up water problems best. (We just get rain, no snow). Congratulations on your purchase.