Introduction
County land banks can offer affordable properties, but like any investment, they come with risks. In this blog post, we’ll explore the potential pitfalls of buying from a county land bank and how to navigate them.
The Hidden Costs: Unclear Liens and Encumbrances
One of the major risks when buying from a county land bank is the potential for unclear liens and encumbrances. These can add up to significant amounts and impact the profitability of your investment.
Environmental Risks: The Unseen Dangers
Environmental risks are another concern. For instance, if contractors used the property to dump asbestos-contaminated debris, this could pose a significant environmental and health risk.
Access Issues: The Importance of Easements
Access issues can significantly impact a property’s usability and value. If the property is landlocked with no easements granting access, it could be challenging to develop or sell the property.
Zoning Restrictions: The Limits on Land Use
Zoning restrictions can limit what you can do with the property. It’s crucial to understand these restrictions before making a purchase.
The Waiting Game: Planning Permission
Obtaining planning permission can be a lengthy process. This could leave you with a small area of low-value land that has a high risk of standing undeveloped.
Overconcentration of Low-Value Properties: The Neighborhood Effect
In certain neighborhoods, there might be an overconcentration of low-value properties. This could affect the overall value and desirability of the area.
Conclusion
While buying from a county land bank can offer opportunities, it’s crucial to be aware of the potential risks. By doing thorough due diligence and working with experienced professionals, you can navigate these risks and make a successful investment.