Why Sell a Vacant Lot in Philadelphia?
Philadelphia is rife with opportunities for developers. According to NextCity, there are over 40,000 vacant lots in Philadelphia. For this reason (plus many others) developers in the city are crushing it. With so many vacant lots in Philadelphia, many of which are very cheap, buying in the area can be a great real estate investment.
However, owning a vacant lot, with no immediate plans to develop the site, is far less rewarding than owning a development (like a multi-family development or student accommodation). There are unexpected costs associated with owning land, some short-term and some long-term. All of this can lead some developers to question whether it’s more beneficial to sell vacant lots – and sell them quickly – rather than save them for a rainy day.
Keep reading to learn more about why sell a vacant lot and how to sell vacant lots in Philadelphia.
1. Maintenance is Costly & Cumbersome
As a real estate company ourselves, we don’t possess any vacant land – and for good reason. Holding onto vacant land can become expensive with no real return on investment. Even the minor things associated with maintaining land can add up. For example, cutting the grass or managing tree and shrubbery overgrowth takes time and incurs regular expense. Vacant lots, especially unkempt ones, can also be prone to flytipping. Junk and trash (from couches to soda cans) can build up and cause rodent issues on the property. It can also lead to code infringements, leading to costly fines if the waste isn’t cleared quickly.
For these reasons, it’s best to sell vacant lots with no immediate development plans as quickly as possible. If you are trying to sell your vacant land in Philadelphia, call Brotherly Love Real Estate at (215) 769-9875. We are a company that buys land in PA for cash.
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2. Fewer Tax Savings on Vacant Lots
Although it might seem easy and smart to own and buy lots of vacant lots in Philly over time, you don’t actually receive as many tax benefits as many people think. Property owners in Philly usually receive more tax breaks for owning physical real estate, rather than empty land. If you are in the game to save money and get more tax breaks, you are usually better off buying physical real estate in Philadelphia.
3. Yearly Costs for Vacant Lots in Philadelphia
Buying vacant land isn’t usually as costly as purchasing a house. However, there are yearly duties to be paid on vacant lots in the city. Contingent upon the area and zoning of your property, the expenses can build up and end up costing you a ton of cash (potentially more than you have). In the event that you save your vacant land and don’t do anything with it, you can pay double or even triple what you accomplished for the land in yearly charges – with nothing to appear for it except for a similar bit of vacant land.
How to Find and Buy Vacant Lots in Philadelphia
Should You Sell Your Vacant Lot?
You might still be wondering if it’s worth it to buy vacant land in Philadelphia after reading these costs. Sometimes it makes sense and you can still make money.
Contingent upon the zoning of your vacant land, you may have the option to recover a portion of yearly duty charges by utilizing your vacant parcel as an additional rental space. Philadelphia oftentimes will turn vacant lots into community gardens, which is cool and supports the community. However, there is always a risk of something happening on your vacant land, so always purchase insurance.
Buying vacant lots in Philadelphia is not as easy as it sounds and there is a lot to it. At Brotherly Love Real Estate have bought vacant lots in Philadelphia in the past. They can be tough to handle. Additionally, large multi-family apartments can be difficult to manage.
Please call us at (215) 769-9875 if you have any questions about the process of buying or selling vacant lots in Philadelphia.