Are you wondering if you should sell your land in Arizona? Maybe you bought it a while ago with plans for development. Maybe you found a gorgeous piece of natural wilderness that you thought would make a fantastic recreational retreat. Or maybe you inherited a property and just aren’t sure what to do with it. Whatever the reason, the thought of selling land has crossed your mind, but you’re just not sure if you want to take steps to sell. In this post, we explore the pros and cons of owning land so you can decide if selling is the right choice for you.
Low Purchasing Costs
It can be pretty simple to acquire your first land investment. You can get started for only a few thousand dollars, buying land low and selling high!
It May Increase In Value
There is a chance the value of your land could go up. However, this can be tough to predict and impossible to guarantee. Always keep yourself on the pulse of what is going on where you live. Don’t be one of those absentee owners who doesn’t keep up with what’s going on. Capitalize when you can on anything going on in your area that can increase the value of your land!
Land typically requires little to no maintenance to own. You don’t have to worry about making repairs, dealing with bad tenants or utility costs. Your property taxes will be considerably lower and are usually one of the only expenses you will face.
A Blank Canvas
You can do so much with the right piece of vacant land! Maybe you don’t want to keep the land for personal use. But there’s no shortage of ways you can still use the space and make a profit in the process. You could develop it, lease it out to farmers or other agricultural pros, improve it then flip it, make it into an event space, create a recreational retreat experience, and more!
It Might Decrease In Value
Land doesn’t always rise in value. If a neighborhood cools off, there can be considerably less demand for the property. This all comes down to your timing, but don’t expect land to necessarily increase, especially not right away.
Not Producing Income
If your land isn’t producing an income for you, you should ask yourself why you are holding on to it. If you think you might “build on the land one day” but don’t have any concrete plans put together, the taxes you are paying might not be worth it. You might be better served by selling the land now, and buying land when you are ready to build. Who knows what can change before then!
It can be difficult to obtain a zoning change if that is what you are intending to do. You might experience backlash from neighbors or find yourself buried in red-tape in order to make it a reality. If you own a large parcel of land, you may not be able to subdivide it in the manner you would like.
Endangered animals or other environmental protections can limit your ability to develop a piece of land. Even if these animals aren’t currently present on your land, it’s not to say a bald eagle won’t come to make a nest on your lot, prohibiting all building to take place. Of course this doesn’t happen every day, however, if you live in an area where there are many protected species, don’t be surprised when one takes up residence on your inviting, vacant lot.
Miss Out On Other Investments
One of the biggest cons of having your money tied up in land is the chance you will miss out on a much better investment. Sure, you can make money from land. However, it can be more difficult to liquidate quickly should something come up making you want to sell. There are excellent, profitable investments out there, and if your cash isn’t available when needed, you might miss out on a lucrative opportunity!