As the second smallest state, Delaware’s accessibility, affordability, stunning landscapes and unique communities make it an intriguing option for those looking to buy land as an investment. However, purchasing raw acreage requires careful planning and research to understand regulations, obligations and potential return on investment ROI. With the right guidance and preparation, ownership of undeveloped land can improve lifestyle through more freedom, financial gains, recreational outlets or legacies for heirs.
Local County Taxes – All land owners face yearly property tax levies based on assessed land valuations in Delaware – budget these carrying costs when considering ROI estimates. Additionally, tying up capital in any asset means forfeiting yields from alternate money allocation options sold investors could have made over identical timelines – factoring these “opportunity costs” when evaluating land ROI.
Environmental Concerns – Past industrial activity or agricultural land use may leave some properties with contaminated soil, groundwater and/or wetlands that require expensive remediation. Perform Phase 1 testing and a professional site survey to uncover any issues before finalizing any purchase.
Limited Land Inventory – With under 2 million acres to begin with, Delaware’s open land availability can diminish quickly as buyer competition heats up. This finite supply can also lead to higher carrying and development costs for prospective buyers compared to massive Western state geographies.
Economic Stability & Jobs Growth – is Delaware land a good investment stable economy, investor friendly legal environment and resilient job/population growth trends support its attractive land prices as an investment opportunity. Nonetheless, factors like stringent environmental regulations on certain land usages or rising commercial real estate property taxes in core metro areas can dampen investment upside long-term.
Affordability – Average property prices in the state sit around $5,000 per acre, which is below the national average of $6,500 per acre. This affordable pricing makes Delaware a top destination for first time homebuyers and investors seeking an entry point into the real estate market.
Pros and Cons
Purchasing raw land in the state of Delaware is a lucrative and rewarding investment for those who understand the complexities involved. However, it is important to weigh all the pros and cons before making a decision.
The best way to ensure that you are getting a good return on your investment is by investing in property that has a lot of value and is easy to maintain. There are also a variety of different ways that you can use your property to make money, such as by renting it out or by using it for farming purposes. It is also important to research the local community and demographics before deciding on a property to make sure that it will be a good fit for your needs. This will help you avoid any unnecessary expenses or pitfalls down the road. In addition, you should also consider getting pre-approved for a mortgage loan before you start looking at properties. This will make it easier for you to find the perfect property for your needs.