Insurance is definitely one of those sneaky costs people overlook. Another thing I've noticed that catches people off guard is property taxes. Depending on your area, vacant land might be taxed differently—sometimes lower, but sometimes surprisingly higher if the municipality sees it as potential development land. Had a friend who bought a plot thinking he'd sit on it for a few years, but the tax bill was way more than he anticipated because the county classified it as prime residential zoning.
Also, good call about mowing and maintenance. Even beyond grass cutting, some areas have strict rules about weeds or invasive plants. I remember someone mentioning they got fined because their empty lot had invasive species spreading into neighboring yards. Little things like that can really sneak up on you.
Has anyone here looked into whether buying vacant land affects your credit differently compared to buying a home or developed property? I'm curious if lenders view vacant land loans as riskier and if that impacts your credit profile differently over time...
I ran into something similar when I was looking at a small plot last year. Thought I'd hold onto it and build later, but after crunching numbers, the property taxes and maintenance fees were way higher than expected. As for credit impact, lenders definitely seem more cautious with vacant land loans—higher down payments, stricter terms, etc. Didn't notice a big difference on my credit profile though...just the usual hit from a new loan application.
Did you factor in insurance costs too? A lot of folks overlook that, but vacant land policies can be pricier than you'd think. Did your lender mention anything about insurance requirements when you applied? Curious if that impacted your numbers...
Insurance is definitely a factor, but honestly, vacant land policies aren't always pricier—depends heavily on location and risk factors. I've seen some surprisingly affordable quotes lately...might be worth shopping around rather than assuming it'll spike your costs.
"I've seen some surprisingly affordable quotes lately...might be worth shopping around rather than assuming it'll spike your costs."
Yeah, I initially assumed insurance would skyrocket if we didn't build right away, but when I actually started getting quotes, it wasn't bad at all. We bought a small plot last year—mostly wooded, rural area—and our vacant land policy turned out cheaper than expected. Definitely recommend checking around and comparing a few companies before jumping to conclusions...saved us a decent chunk of money.
