You are probably looking for a land property in Washington because you want to build your dream home and have a place that you can call your own.
You have recently received that well-deserved promotion and now you are thinking about serious investment for the benefit of your future and family. Owning a property on land is one of the most beneficial and tangible investments that reap benefits essentially if you will be inhabiting the land for your own use.
We have found that being a landowner in Washington has its own advantages. Such as, the real estate market in Washington is highly competitive and you will not have to pay any personal income tax for owning land.
However, there are some cons that you would want to consider before making the decision to buy land property. It is important to know for which purposes you are planning to buy land in Washington. It is for sure a very advantageous investment opportunity but it is also a very viable option to make a home for yourself.
We have gathered a list of pros and cons of owning land in Washington that you can look into before you go on to sign a deal with a broker. These have been carefully assessed considering the economy, real estate market, and general preference of the larger population for choosing to invest and live in Washington.
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Owning Land in Washington: Pros and Cons
Washington is considered to be one of the most favorable states in terms of its economic stability and living conditions. Every year, thousands of people choose to migrate to the state in the hopes of finding better work opportunities and improving their living standards.
The real estate market in Washington is also very promising. The state is the 10th richest in all of America that provides employment to almost half a million people. You can find Amazon headquarters in Washington along with other top companies like Starbucks and Costco that contribute significantly to the economic growth of the state.
There are many factors to consider when deciding to buy land in Washington. The first is the affordability factor. Mostly, properties in Washington, especially in Seattle, are expensive, but you can find decent land to own under your budget in any other city.
Location is also very critical to consider when looking to buy land property. It determines the cost of the land which can help you narrow down your search for a suitable land property that you can own within your budget.
There are plenty of questions regarding this that you need to ask yourself. This guide will help you go through each of the possible pros and cons of owning land in Washington and will be able to answer most of your queries. Along with that, it will also guide you about critical factors that you need to look out for before buying land.
Washington is a state situated in the Northwest region of the United States of America. It is expanded over an area of 184, 666 km square and has a population of more than 7.5 million people all over the state.
This state carries immense value for its land due to several reasons for which you can consider buying a property land for yourself.
The Geographical Significance Of Washington
When you decide to purchase a piece of land for yourself, the first question you ask yourself is where you would want to buy land. Washington holds a prominent significance for its geographical location which makes it valuable for owning land property.
The lush landscapes for one, are an ideal source of attraction for many investors and for people looking to own land to build their homes and live in Washington. If you are someone who just needs a chance to step out into nature and reel into the freshness of the natural environment, then Washington is just the place for you.
You can buy a land property in Seattle, build a home for yourself there, and enjoy a refreshing drive through the forests, rivers, and luscious green nature of Washington roads. The land around this area would be a little more expensive but the property is well worth it in terms of investment.
If you consider yourself an outdoorsy person with an appreciation for nature, then owning land in Washington is a good idea for you.
The primary reason for Washington’s thriving real estate market is the economic stability of the state. It is considered to be the best state in the United States in terms of economic growth. It offers employment to more than half a million people all over the state.
Most people prefer investing in Washington in terms of owning land and building their own homes for the affordable living factor. The cost of living is fairly decent and with an accomplished job market, you can find suitable work opportunities conveniently.
Washington is the largest economic hub which gives you better opportunities for growth. You will be able to create profitable global business relationships. The state has the largest GDP growth in the United States.
Due to these reasons, the real estate market is highly competitive in the state which is an essential pro of owning land in Washington.
You will not have to pay any state income tax if you decide to live in Washington. Neither will you have to pay any personal income tax on the land property that you buy for yourself.
This allows for the maximization of your take-home profit. This is by far one of the most impressive factors for all those who are looking to invest in real estate in Washington. Owning land in your name will allow you the privilege of building a home or even a residential building that you could then rent out.
You will be able to utilize your hard-earned money in the ways you have always wanted to do rather than spending it on personal income taxes.
Like a general law of nature, every good thing has pros and cons. However, this does not mean that you should feel discouraged from owning land in Washington. These cons are listed for you to have a clear understanding of what it means to be a landowner in Washington State.
Furthermore, these cons will help you figure out whether investing in land property in Washington is what you ought to be doing.
Owning Land In Washington Can Be Expensive
As the real estate market is very competitive in Washington, it leads to higher prices of land as well. However, owning a land property is still cheaper than buying a furnished house or a building.
Nevertheless, you will have to make a smart decision about spending your money on buying land in the state. It will for sure be a beneficial investment, however, many people hesitate to invest in land in Washington precisely for its high prices.
Seattle, for suppose, is one of the most expensive cities, therefore, the price for land there is the highest. It is a city known for its coastal and natural beauty which inadvertently increases the demand for land ownership. Subsequently, the maintenance cost of the land property will also increase.
Low inventory means that due to the increase in the state’s population, there is a high demand for housing and subsequent ownership of land. However, there is not enough land for everyone to own for themselves. Therefore, many people choose to rent rather than own land, which ultimately increases rent prices.
In hindsight, this is a pro of owning land in Washington.
State’s Sales High Taxes
Even though you will not have to pay any personal income tax, however, the state’s sales taxes are pretty high which becomes a deal-breaker for some people. You will also have to pay an average amount of property tax for the property that you own. The average property tax rate that you will end up with for the land you own is 0.93%.
The average sales tax in Washington is considered to be the fourth highest in all of the United States. The state also has its own estate tax which rarely has any exemptions.
The average sales tax for all of Washington is about 6 %, but some cities impose additional sales tax as high as 4%, therefore, you can expect to pay around 9.5% of sales tax.
Washington also has an approximately 20% of estate tax that you will have to pay if your estate value is more than $2.193 million.
Factors To Consider Before Owning Land in Washington
It is important that you do thorough research before you decide to spend your money on land ownership in Washington. These factors will guide you best in your research.
A very critical step in deciding to get a land property is to survey the land for any potential risks that may restrict you from utilizing that piece of land. You need to look for any environmental restrictions, any policy restrictions, and permission to build on the land you own.
Accessibility And Utility
It is best to choose a land that is easier to access that is it is easy to get to and out from.
When you decide to start building on your land, you will have to start paying for utilities to complete the structure of the property. So, be prepared to pay utility bills even before those monthly bills come in.
Size Of The Land
The size of the land does not necessarily define the cost for it. If a land seems larger in size, it may have some areas that are not usable, such as a steep slope, which may reduce the cost of the land.
Therefore, it is best to know exactly what areas of the land you will be building on to ensure you make the right payment for it.
About THE AUTHOR
We loved family’s outdoor adventures so much we started a land business just to help others buy their own land. We’ve sold to dozens of people from ATV weekend warriors to camping enthusiasts to retired truck drivers. Our inventory spans five western 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