Owning land can be a lucrative real estate investment that diversifies your portfolio and hedges against downturns in a single market sector. It can also be a fantastic way to build your custom dream home, have a vacation getaway spot or develop a profitable commercial property. In Maryland, the potential perks of buying land are many and varied. Regardless of your reason for purchasing raw land, it’s critical to consider the pros and cons before making the decision.
Maryland is a state of vast contrasts, spanning sandy Atlantic beaches and heralded Chesapeake Bay to lush Appalachian forests and urban density of Baltimore. This geographic variety translates into real estate opportunities for prospective buyers with varied interests, from agricultural land and inland lakes to historic harbor towns and waterfront homes. It also poses unique challenges from commodity price volatility and capricious weather to infrastructure deterioration and environmental threats.
A strong business climate bolsters commercial development in Maryland. Major corporations from Lockheed Martin to Marriott International have headquarters or large presences in the state, while small businesses benefit from innovation incentives, tax breaks and a strong community of local investors. This economic momentum creates jobs and consumer demand that in turn support residential housing, retail, office, agriculture and other real estate markets.
The perks of owning pros and cons of buying land in Maryland are many and varied, from objectively beautiful parks and scenic views to lower building costs. However, it’s important to understand that the return on investing in raw land isn’t as high as the return you would receive from a single-family residence. Moreover, the lack of immediate buyer demand can limit your options when it comes to selling the property in the future.
Purchasing land in Maryland can be a great way to make a long-term investment, but you should be prepared to face higher upfront costs and more illiquidity than when purchasing a home. This is especially true if you plan to use the land for personal purposes. Additionally, you should be aware of the fact that Maryland is a high-tax state, which can impact your pocketbook.
Whether you’re an investor looking to add raw land to your portfolio or a prospective homeowner planning to build a customized home, Maryland is an ideal location. Just be sure to do your research and consult an experienced localized real estate agent who can guide you through zoning codes, permit approval timelines, utility realities, flood vulnerabilities and other considerations specific to each county. This can help you avoid the risk of buyer’s remorse and maximize your investment potential.