Other buy & hold investment in Shelton.
Purchase price: $75,000
Cash invested: $75,000
Beautiful undeveloped land, some meadow, some timber, a bit of wetland; the property abuts our current land. Gives us a buffer against future development. Who knows maybe we will subdivide some day.
What made you interested in investing in this type of deal?
Future holding, privacy.
How did you find this deal and how did you negotiate it?
Networking the area.
How did you finance this deal?
Just paid cash.
How did you add value to the deal?
Leaving the land undeveloped for know.
Lessons learned? Challenges?
Learned that if you decide to not develop the land and leave it as open land for now, the property tax is about 10% of regular, and if you decide to develop later you can do a tax 'catch up' at that time.
@Bjorn Ahlblad , what is a 'tax catch up?'
@Paul Dauffenbach you are paying the unpaid taxes to get a permit to develop the land if and when. Taxes can be paid by owner or the buyer. Say taxes are 1k/yr for land to develop for housing or whatever and open land taxes are 100/yr; and say you have been doing that for 10 yrs; you will owe the county 9k (900 dollars per year) to catch up on those unpaid taxes. There is also no guarantee that the land use permitting will be the same in the future. Works well for us as we do not have the intention to build on that property.
@Bjorn Ahlblad , I don't understand why you would have to pay any additional taxes if the land use has not changed, it's not subdivided, or appraised much higher? The taxes should literally be the same either way, no?
@Paul Dauffenbach You only pay the higher taxes if and when you get a permit to develop the land.
@Bjorn Ahlblad , but then you owe back taxes for those years you owned the property but didn't develop it? That doesn't make sense.
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