Are you looking forward to buying and owning land in Maine? Are you wondering whether it’s the right decision? Well, this guide has the answers.
Should you consider buying land in Maine? Is owning land in Main a great idea? Are there drawbacks to owning land in Maine?
The pros of owning land in Maine include:
- The opportunity to build your dream home
- Plenty of outdoor opportunities
- Numerous investment opportunities
- Minimal maintenance costs
- Long-term appreciation
The drawbacks are:
- Lack of immediate cash flow
- Infrastructure issues
- Zoning issues
This guide will walk you through the pros and cons of owning land in Maine. So, if you are looking to buy and own land in this state and are unsure whether it’s a good movie, the information in this article should help guide your decision-making.
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When it comes to investing in real estate in Maine, most people opt to buy existing properties such as multi-unit dwellings or single-family homes. However, you also can purchase and own land as a real estate investment. But like all other real estate investments, owning land comes with its fair share of pros and drawbacks. If you want to own land in Maine, here are the pros and cons to consider.
Pros of Owning Land in Maine
Whether you decide to purchase a piece of land in the rural areas or close to the main cities, owning land in Maine comes with numerous benefits. And here are some of the benefits of owning land in Maine.
You Can Build Your Desired Home
One of the biggest advantages of owning land in Maine is that it gives you the opportunity of building your dream home. When you have a piece of land in Maine, you will get an opportunity to participate in designing and building your preferred house, which is usually not the case with ready-built homes. When you have a piece of land, you will have adequate space to decide the type of house or home that you want.
For instance, you get to decide how many rooms you want in that house, the design for your kitchen, the facilities that you want on the property, the design of the front yard, as well as any other thing that you may want your dream to have. You also get to decide the color of your house, which is usually not the case when your house is located in a neighborhood with ordinances.
Plenty of Outdoor Opportunities
If you own property in the cities or suburbs, your options are limited when it comes to outdoor activities. In fact, the most you can do is either set up a kitchen garden in your backyard.
But when you own land in Maine, especially in the rural areas, your options are almost endless when it comes to outdoor recreation. For instance, you can hike on your property, hunt, bird-watch, or even go horseback riding. Besides, you can also do some fishing if your own land is close to a water body. Simply put, your weekends will never be boring when you own land in Maine.
Vast Investment Opportunities
Owning land in Maine comes with plenty of investment opportunities. Assuming you have purchased a vacant lot, you have plenty of investment opportunities to explore, depending on your preferences.
Besides building a house, you can also decide to plant crops, raise animals, build vacation rentals, lease the land to ranchers or farmers, build multi-unit residential homes, build single-family homes or set up a campground.
You also have the option of keeping your piece of land vacant and later reselling it at a higher price a couple of years later. In short, the investment opportunities on a vacant piece of land in Maine are almost endless. As long as you stay within the local zoning laws, you can convert your land into almost anything that you want.
Minimal Maintenance Costs
Another key benefit of owning land in Maine is that it comes with minimal maintenance costs, especially if it’s undeveloped. When you have a vacant piece of land, the only thing you need to do after purchasing a piece of land in Maine is to fence it.
From there, you simply need to be checking whether the fence is in good condition and undertake the necessary repairs, which will only cost you a few dollars. And this will only happen after several years.
But, when you own a building, you can expect to be spending thousands of dollars every month on maintenance. Furthermore, property taxes also tend to be on the higher side for developed land compared to undeveloped land. So, if you are looking for a great investment to add to your portfolio, then you should consider purchasing a piece of land in Maine. It needs minimal action or attention.
The land is one of those investment opportunities that rarely depreciate. Regardless of where it’s located, you can expect your piece of land in Maine to continue appreciating with time. And when it’s time to re-sell it, you can expect to earn substantial profits from it.
Buildings, on the other hand, tend to fall into a state of disrepair with time, especially if they are not properly maintained. But when you have a vacant piece of land, you will never have to contend with such challenges.
Considerable Appreciation Potential
When you have a piece of land, considerable shifts in development can happen close to it, thus pushing property prices up in the area considerably. So, when it’s time to sell your lot, you will earn substantial profits.
For instance, a large business center, an airstrip, or other similar facilities can be set up within your property’s proximity. And when that happens, you can expect to sell your piece of land in Maine at a considerably higher price than you purchased it.
Cons of Owning Land in Maine
Without a doubt, owning land in Maine comes with numerous benefits. But, just like other types of investments, it also has a couple of drawbacks. Here are some of the cons of owning land in Maine.
No Immediate Cash Flow
As much as owning a piece of land in Maine comes with numerous investment opportunities, the return on investment is quite long-term. If you don’t have a means of developing the land and generating income from it, you can’t expect to generate any money from it immediately.
At the same time, you also have to continue paying property taxes on the piece of land. The only time you can expect to generate income from your piece of vacant land is when you sell it. And if you don’t have the finances to keep paying the property taxes, your investment may become costly with time.
When it comes to buying land in Maine, there’s a high chance you will go for the most affordable that you can find. And in most cases, the most affordable land is usually found in remote areas. Unfortunately, land in such areas lacks infrastructural connectivity.
For instance, there may be no potable water, electricity, sewage, internet, TV connectivity, or even paved roads. So, in case you decide to develop this land, you will have to find a means of connecting your piece of land with these key systems. And this can prove to be quite costly.
Land tends to appreciate at a higher and faster rate than most other investments out there. While this may be an advantage, it can also work against you. Finding a willing buyer who can pay the higher price is not easy.
Furthermore, you can’t dispose of land quickly if you happen to find yourself in a challenging financial situation. In short, the land is not a short-term investment. If you are looking for a short-term investment, then you should explore other financial products like recurring deposits, mutual funds, or gold.
What you can do with a piece of land will depend on the local shoreland zoning ordinances. For instance, the land you own may be in an area that has been specifically zoned for agricultural purposes.
So, if you had purchased the land with the intention of setting up commercial facilities on the property, it will be impossible. And in such a situation, you may be forced to farm on it, which may not have been your desire or even sell it at a loss.
With that in mind, if you are planning to purchase a piece of land in Maine and you have plans of developing it, you should first check the local zoning ordinances to ensure they align with your development ideas.
Steps to Owning Land in Maine
Without a doubt, the pros of owning land in Maine outweigh the cons by far. The question is, how do you get to own a piece of land in Maine? Well, owning one is not a complicated process. Here are the steps to owning land in Maine.
Choose a Location
There are several places where you can purchase and own land in Maine. And as you may expect, the prices will vary from one location to the other. So, you will need to do some research and identify a location whose prices align with your budget. Also, you should make sure the location that you choose has been zoned for the purpose you have in mind if you are planning to develop the land.
Identify a Piece of Land
Once you’ve identified the location, you then need to go a step further and identify a piece of land that you can purchase. Fortunately, finding the right piece of land is not hard these days, thanks to technology. For instance, you can simply search on Google, using search terms that align with the type of land that you want to own in Maine.
For instance, you should specify that during your search if you are looking to own a piece of land for recreation, fishing, farming, hunting, or commercial developments. And you will get hundreds of potential properties within a few seconds.
Also, there are several real estate websites that you can use to search for land. Some of the sites that you can use include Realtor.com, Zillow, Trulia, Landflip, Loopnet, Landwatch, Land and Farm, as well as Lands of America, just to name a few.
Visit the Land
After finding the land that you want to own in Maine, it’s now time for a site visit. Maine is a vast state with lots of empty, remote regions. To this end, it will be advisable to bring along someone who knows the area well if you are not familiar with it. Real estate agents or surveyors can help you with this.
Once you are on the property, make sure you inspect it carefully for things like boundaries or property lines. The site visit will help you to determine whether the property is as advertised. Ideally, it will be advisable to visit during the wet season. Visiting during this time of the year will help you to determine whether the land you are buying is prone to flooding.
Make an Offer
Once you’ve checked and verified that everything is in order, it’s now time to make an offer for the land. It will be advisable to make a written offer since verbal agreements don’t hold much weight. And since you are dealing with a stranger, having a written document will make it easier to sue the seller in case they don’t hold their end of the deal. If the offer is accepted, you can then finalize the transaction with the help of a realtor.
Wrapping It Up
If you have some money that you don’t mind tying up in a long-term investment, then buying and owning land in Maine can be a great idea. However, make sure you conduct thorough due diligence and engage the right professionals to ensure you are not swindled.
About THE AUTHOR
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.Read More About Brittany Melling