Are you holding on to land in Charleston? Instead of just letting it sit there, you might want to consider what it is really doing to help you! We can help you explore the pros and cons so you can decide if selling is the right choice for your situation!
Pros of Keeping Your Land in Charleston:
Low Purchasing Costs
Depending on where you look, 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! Land is still reasonably priced in areas outside of Charleston. Search for land opportunities in cities like Ravenel, Hollywood, and McClellanville.
Your Land 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 here in Charleston. The market may be hot now, but it will inevitably cool down. 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.
Cons of Holding on to Land in Charleston:
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. As of now,, many people are moving to Charleston. Things could change very quickly, so keep this in mind. 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!
If you have ever attended a town hall meeting, you know exactly what we are talking about. It can be difficult to obtain a zoning change if that is what you are intending to do. Especially in Charleston and Dorchester counties. You might experience backlash from neighbors or find yourself buried in red-tape in order to make it a reality. If you are close to a residential area, you will be under more scrutiny. 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. Here in Charleston, Grand Trees are very sacred. Take Riverland Drive in James Island, for example, which is considered a scenic highway. There are strict laws and regulations for doing any kind of development in this area.
Trees are not the only environmental concern for lot developers. We have a wild variety of wild life living all around Charleston. If you lot is in a less developed area, there is a great possibility that animals are calling it home. 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. Most buyers can not get a mortgage for land, so it may take time to find a buyer with cash on hand. You may lose out on an opportunity if you wait too long 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!
When investing in Charleston land, make sure you have an exit strategy in place. Make it a point to become acquainted with the area’s top buyers and strive to keep your finger on the pulse of the local real estate market. You don’t want to find yourself stuck with a worthless piece of land and nobody to buy it.
Are you ready to sell your land in Charleston? We can help! Send us a message or give us a call today! 843-994-3200