Owning Land In Delaware: Pros & Cons | askBAMLand

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Land can be a wise or risky investment idea depending on its location. So, is buying land in Delaware an ideal investment? We have the answers.

What are the pros and cons of owning land in Delaware? What factors should you keep in mind before you own land in Delaware?

The benefits of owning land in Delaware are tax benefits and the high rate of return on land investment in opportunities such as agriculture, real estate, and recreational investment. The setback to owning land in Delaware is the high land cost, population density, and infrastructural challenges.

The article will guide you on the benefits and setbacks of buying land in Delaware. It will also examine some key developments you can implement on the land and the factors to keep in mind before you own land in Delaware. So, if you are planning to own land in Delaware but cannot decide whether it is a wise or risky investment idea, this article will guide you on this.

We aim to ensure that you get the relevant, factual, and authentic information. Our highly proficient team of researchers, writers, and other key professionals provides that the content you get is dependable. Therefore, if you happen to read any of our articles and other guides, be sure that the information is authoritative.

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Delaware comprises a community of people from different racial and cultural backgrounds and professions. The state has around 968,000 people, and the land is about 6,452 square kilometers. Each square mile has about 460 people, making Delaware have a high population density. The terrain of Delaware is primarily flat, where most of the lands are plateaus and plains, having an average of 50 to 60 ft. above sea level. It also has forests with different types of trees, where the northern part of the state has hardwoods while the southern region has a mixture of hardwoods and softwood trees.

The area consists of rivers such as Delaware, Mispillion, Nanticoke, Pocomoke, and St. Jones, which provide water for domestic use, transport, and fishing. The eastern shorelines of the state consist of bays, marshes, and creeks, while the southern part consists of over 30,000 acres of swampy land. Delamare has raised celebrities such as Elizabeth Shue, Ryan Phillipe, Torri polo, and Judge Reinhold, among others. Overall, the people dwelling in Delaware are warm and inviting, the average weather conditions are favorable for crop farming and livestock keeping, and the property taxes are low.

Pros of Owning Land in Delaware

Owning land in Delaware has many benefits because, with the vacant land, there is direct ownership where the buyer pays the total cash to the land owner to acquire the land’s full ownership. Since it is a tangible resource, it cannot wear out. Additionally, there is the freedom of utilizing the land parcel according to the different zoning uses of the area with minimal restrictions. Buying vacant land has a low cost of maintenance compared to developing properties that require to be renovated from time to time. The cases of vandalism are also not common when having vacant land when developing it into various properties. The following are the benefits of owning land in Delaware:

Low-income Tax

Delaware is known to impose low taxes on land and property, whereby some taxes, such as sales taxes, are exempted. Property taxes are also low, and according to research done by up counsel, Delaware is ranked 4th for the most down payment of property taxes. The income tax ranges from as low as 0% to 5 % depending on the level of income one generates.

The state also offers tax credit that helps taxpayers save on cash. The state exempts a fee of about $110  on the income tax return of the federal state. For instance, if one owns two land parcels at the same place and each land has a different exemption, there is an exemption of $220 from your tax. Therefore, owning land in Delaware helps save money due to a low income.

Rate of Return on Land Investment

The economy of Delaware continues to increase exponentially due to the distribution, consumption, and exchange of products that mainly originate from the land. Depending on the location and land potential, one can put the land into various investments to make earnings. The following are some of the land investments that can be suitable in Delaware;

Agricultural Investments

Delaware is known to be among the leading producers of poultry, especially broiler chickens. It generates up to $ 1 billion yearly, and at least 70% of the cash that comes from farming originates from poultry farming. Therefore, using land for poultry farming guarantees benefits due to the high demand for poultry in Delaware.

Additionally, Delaware has fertile lands suitable for the plantation of various commodities such as field corn, sweet corn, watermelon, and potatoes sold within and outside the state, depending on the production scale. Other essential crops that one can plant include; wheat, apples, pea, and grapes. In addition, if the land is close to the coastal region or near an inland water body, one can practice aquaculture as a source of income.

Real Estate Investment

In Delaware, one can either invest in real estate by building homes and renting them out while waiting for the property to appreciate in a value that generates a good income or construct commercial properties such as gas stations and pizza restaurants, among other businesses collecting rents.

The benefit of investing in real estate projects is a secured income flow that gives good returns since most land parcels in Delaware appreciate. Additionally, the nature of real estate is that it is a sustained project. There is the low-term security of holding the properties and selling them later for a profit or renting them out until their value increases. Investing in real estate also protects one from inflation. When the value of products and other commodities increases, the value of homes and other real estate property also rises. Therefore, there is financial protection to cover the rising cost during inflation.

Recreational Investment

Owning land in the coastal plains and other areas with access to a recreational facility can be profitable if one decides to rent out land for recreational purposes. The only difference between real estate and recreational investment is that in recreational investment, one has the option to rent out vacant land for recreational purposes until it increases in value. In Delaware, one can rent out land for activities such as fishing, legal hunting, family retreats using RVs, and camping.

The benefit of renting out land for recreational purposes is that the land provides for the deduction of taxes, and the maintenance cost becomes low unless a client needs utilities for the recreational activity. For instance, during camping, one may need to provide tents and firewood as a source of fuel to be used by clients.

Mining Investment

Minerals and other natural resources play a crucial role in the economy of Delaware. The mining industry makes about $ 1 billion yearly to the Bureau Mine Organization. The mineral resources present in Delaware can be grouped into four classes; glauconite, sand, oil and gas, sand, and other construction minerals. In Delaware, chromium, iron, and aluminum are the most common minerals mined. Therefore, using the land for mining can be profitable if this is planned and executed in the right way. However, before one begins the project, there should be a confirmation if the land has enough mineral resources and if one has the right to utilize the mineral.

The Cons of Owning Land in Delaware

Having looked at the pros of owning land in Delaware, it is a wise investment decision to consider depending on the development activity to implement. However, there are some setbacks to consider when owning land in Delaware. They include;

High Population Density and Land Availability

According to the world census 2020, around 998,619 people live in Delaware, and the land is about 6,458 square kilometers. It proves that the availability of land is low, and therefore, one cannot buy a large piece of land because, for each square mile, there are about 460 people. People mainly buy land in Delaware for settlement and small-scale projects such as building shops and small rentals.

High Cost of Land

According to land watch, there are about 2 million acres of land in Delaware, and 11,799 acres of land are remaining for sale. The average price for the remaining land is about $650,000, which, compared to the other states in the US, is costly. The land is expensive because there is high competition to buy the remaining land, and the cost rises when the demand is high. Therefore, if one considers buying land and selling at a profit, Delaware is unfavorable for that kind of project.

Access to Utilities and Infrastructural Challenges

According to America's Infrastructure Record, Delaware has challenges with the infrastructure and access to utilities since it is still developing. For instance, every person driving on a road that requires repair should pay $ 450 annually and about $125 to fix bridges that are structurally unfit. There is also a lack of drinking water, costing people around $ 800 million to access drinking water because most clean water sources, such as dams and rivers, are hazardous for use. Therefore, owning land in Delaware requires finding alternative ways to access utilities and having enough funds to pay for infrastructural maintenance.

Factors to Consider Before Owning Land in Delaware

Having discussed the pros and cons of owning land in Delaware, one can weigh and decide whether it is suitable to own land In Delaware. Moreover, one needs to consider some factors before owning land in Delaware. They include the following;

Land Easement

Before purchasing land in Delaware, one should check whether there are any land easements, that is, looking for any resource that one needs to be shared with the adjacent lands, and see if it is favorable. If there is no land easement and you wish to share the resource on the adjacent lands, one has the right to request a permit to use it, primarily if the state authority is supplying it. Additionally, one also has the option to cut off the expenses of cost-sharing the common resources by placing their own alternative utilities. For example, one can cut the use of water with the neighboring land parcel and dig a borehole.

Property Tax Obligations

Understanding the primary property tax obligations and the process involved in tax assessment guides one in dealing with the property tax to avoid getting extra charges for paying the taxes on time. Different methods can help to evaluate the property tax obligation on the land, that is, the cost and value of the land minus the rate of land depreciation and the average sale comparison of the land in the area.

One also needs to understand that the national and local governments have different ways to impose taxes in various areas around Delaware. For instance, the areas that lack necessities such as utilities can pay a lower property tax than laces with access to utilities. Therefore, having a basic understanding of the property tax assessment and its basics is vital when choosing land to buy.


Consider buying land that assures profitability disregarding the development objective of purchasing the land. Buying the land in urban areas around Delaware means that you will get land which is going to appreciate. However, when one considers buying land in rural areas, there is no guarantee of making profits for a specific period. To understand if the land is profitable, assess the demand for the other neighboring lands in that location and also look at the urbanization rate of the nearby areas. Additionally, one can develop the land to increase its value.

Permission of the Area

Before purchasing land in Delaware, look and apply for a permit for the area that you want to invest in. The state authority has set up regulations on how to utilize the land. These rules can apply differently in different regions. For instance, in one area, one has been restricted to building industries only, while in another place, there is a limit to building residential property only.

Wrapping it Up

Delaware offers beautiful and unique features that help to attract a lot of investments. However, due to the high population density and a small portion of land remaining for sale, buying the land becomes expensive. That notwithstanding, Delaware is suitable for settlement and other small-scale projects but not large-scale projects such as building industries and companies.


Brittany Melling

Brittany Melling

Brittany has been in the land business since 2020 when the world was starting to shut down. Since then, we’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans mostly in the western United States. We’ve been trained by experience, land acquisition courses, and hundreds of hours meeting with county assessors and clerks, zoning officials, realtors, and land investors. We’ve answered hundreds of questions from people regarding the buying and use of land.

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