I purchased a quarter acre lot on a culdesac back in 2023 for about $25k, which included a buy-in fee of $5k into the community and closing costs. Two years later the buy-in fee has increased to $10k, HOA fees increased, and there's a special assessment for approximately $2800. I was planning to list at $50k, cover buy-in fee of $5k and 10% commission. With the new increase in fees, I would basically break even. Should I hold for longer or sale?
I purchased a quarter acre lot on a culdesac back in 2023 for about $25k, which included a buy-in fee of $5k into the community and closing costs. Two years later the buy-in fee has increased to $10k, HOA fees increased, and there's a special assessment for approximately $2800. I was planning to list at $50k, cover buy-in fee of $5k and 10% commission. With the new increase in fees, I would basically break even. Should I hold for longer or sale?
What was the original intent for the property? Coastal insurance rates are only going to go up. How many special assessments can you afford going forward?
@Ken M. The plan was to build a home and use it as a vacation spot for my family and as a rental during the times we are not occupying it. Currently my carrying costs are about $2500/year (HOA Fees & property taxes). I can continue covering this costs, however I was planning to use the proceeds from this sale to help fund another project. As fees continue to increase in this development, my desire to build is declining.
@Ken M. The plan was to build a home and use it as a vacation spot for my family and as a rental during the times we are not occupying it. Currently my carrying costs are about $2500/year (HOA Fees & property taxes). I can continue covering this costs, however I was planning to use the proceeds from this sale to help fund another project. As fees continue to increase in this development, my desire to build is declining.
I'd sell. Your enthusiasm for the project has waned and will probably never be completed. Do something that excites you instead.
As tempting as land has been at times I have always passed because of the costs without any income other than depreciation. If you have something better in mind to do with your money I would sell.
@Jules Aton My investment strategy with this purchase was either build to rent, or build to sell! Since the carrying costs for this property isn't high, holding on to it for a few years was always in the plan. However, now I'm considering a sell to free up some cash
My investment strategy with this purchase was either build to rent, or build to sell! Since the carrying costs for this property isn't high, holding on to it for a few years was always in the plan. However, now I'm considering a sell to free up some cash
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
1y
It’s a unique situation since the property was bought for your own use. Therefore, it has to be an enjoyable environment for you, which you can comfortably afford .
making a profit is irrelevant since it is not used for investment purposes.