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Vacant land holding cost calculator
Project the all-in annual cost of holding vacant land — taxes, insurance, financing interest, weed abatement, security — to break-even on resale.
Total holding cost
Show the work
- Annual holding cost$4,650
- Break-even sale price$98,250
- Annual appreciation needed5.5%
Land doesn't pay you back while you wait
Vacant lots produce no income but consume cash every month. Most land speculators severely underestimate the holding cost, then sell at a "profit" that doesn't cover their carry.
The carry stack
- Property tax: 0.5-2.5% of assessed value annually
- Liability insurance: $200-500/yr (someone slips on your lot, you're liable)
- Weed abatement / mowing: $300-1,200/yr depending on county requirements
- Financing interest: 7-10% on land loans (much higher than mortgages)
- Soft costs: HOA dues, road maintenance assessments, utility-extension fees
The break-even reality check
A $75k lot held 5 years at default carry needs to sell for ~$95k just to break even. That's a 25% nominal appreciation = 4.6%/yr — roughly inflation. If land doesn't outpace inflation by 2%+/yr in your area, you're losing money in real terms.
When land is good
- You have a specific build plan within 24 months
- You're banking land in a growth-corridor pre-zone-change
- Cash purchase (eliminates the biggest carry cost)
- The lot has timber / mineral rights / easement income offsetting carry
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