If you’ve recently inherited land, you may be considering whether or not to sell it. There are a number of reasons why it might be a smart decision to put the land back on the market. Here are a few of them.
1. You Can Make a Profit
One of the most obvious benefits of selling inherited land is that you can make a sizeable profit. With the right strategies and market knowledge, you can easily turn a profit on the sale of your inherited land.
2. You Can Invest the Money
Another benefit of selling inherited land is that you can invest the money you make from the sale. Investing in stocks, bonds, or other assets can be a great way to make your money work for you and build wealth over time.
3. You Can Pay off Debt
If you’re in debt, selling inherited land can be a great way to pay it off quickly. By selling the land, you’ll be able to pay off your debt and get out from under its burden.
4. You Can Buy a Home
Selling inherited land can also be a great way to fund the purchase of a new home.
What are the potential pitfalls of keeping land you inherit?
Inheriting land can be a great blessing, but it can also bring with it a variety of potential pitfalls. From taxes and maintenance costs to legal entanglements, there is a lot to consider when deciding whether to keep land you have inherited. Here are some of the key pitfalls to be aware of when inheriting land.
1. Taxes:
Depending on your state laws, you may be responsible for paying inheritance taxes on the land you have inherited. The amount of taxes owed can vary greatly and could significantly reduce the value of the land. It’s important to research the potential tax burden before deciding to keep the land.
2. Maintenance Costs:
Owning land comes with a variety of associated costs, including taxes, insurance, and maintenance costs. Even if the land is unoccupied, you may still have to pay for things such as mowing and trimming the property, dealing with pests, and making any necessary repairs.
3. Legal Entanglements:
If the land is not in your name, you may be responsible for any legal entanglements related to the property. This could include unpaid taxes, zoning violations, or even liens against the property.