Vacant land holding cost calculator

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