What to do with inherited land in an urban area?
February 13, 2010 8:53 AM Subscribe
Inherited Land - What can be done with it?
A few years ago my family inherited a lot, (45' by 100') in Jersey City, NJ. Since that time it has been really nothing but a nuisance. Constant maintenance throughout the summer, garbage cleanup, etc.
We've attempted the community garden thing, with little interest.
Hopefully this isn't chatfilter, but I'm sort of looking for suggestions as to what to do with this albatross.
I am a college student with little-to-no access to funds, and my parents are living on a fixed income. They are kind of hesitant to just sell it, both for sentimental reasons, and simply because the proceeds wouldn't really be lifestyle-changing.
So what would you do in this situation? What is the "oh man, if only" plan you might enact if handed a plot of land?
tl;dr: What should I do with a vacant lot in an urban area, with little access to funds for building.
Thanks so much!
A few years ago my family inherited a lot, (45' by 100') in Jersey City, NJ. Since that time it has been really nothing but a nuisance. Constant maintenance throughout the summer, garbage cleanup, etc.
We've attempted the community garden thing, with little interest.
Hopefully this isn't chatfilter, but I'm sort of looking for suggestions as to what to do with this albatross.
I am a college student with little-to-no access to funds, and my parents are living on a fixed income. They are kind of hesitant to just sell it, both for sentimental reasons, and simply because the proceeds wouldn't really be lifestyle-changing.
So what would you do in this situation? What is the "oh man, if only" plan you might enact if handed a plot of land?
tl;dr: What should I do with a vacant lot in an urban area, with little access to funds for building.
Thanks so much!
I would sell it.
Whether it would make you guys millionaires or not, the costs associated with owning the land (both monetary and time) seem onerous.
As to the idea of renting parking space on it: that sounds nice in theory, but no doubt there are a bunch of municipal laws and regulations about that kind of thing. You don't want to violate those.
Else it becomes a much larger financial albatross.
I had a friend who inherited a plot of land from a family member. I told him that he should either decline it or else sell it. He thought I was nuts. Five years later he admitted to me that I was right.
Real estate is often much more trouble than it is worth, especially if your access to capital is limited.
posted by dfriedman at 9:02 AM on February 13, 2010
Whether it would make you guys millionaires or not, the costs associated with owning the land (both monetary and time) seem onerous.
As to the idea of renting parking space on it: that sounds nice in theory, but no doubt there are a bunch of municipal laws and regulations about that kind of thing. You don't want to violate those.
Else it becomes a much larger financial albatross.
I had a friend who inherited a plot of land from a family member. I told him that he should either decline it or else sell it. He thought I was nuts. Five years later he admitted to me that I was right.
Real estate is often much more trouble than it is worth, especially if your access to capital is limited.
posted by dfriedman at 9:02 AM on February 13, 2010
How is it zoned? What's the surrounding area like?
The right answer in this situation is usually: sell it to a developer. If your parents don't want to sell it outright, they can sometimes work out a long-term ground lease arrangement that will provide some ongoing income -- but again, it depends on the zoning and the type of development. And as you probably know, we're currently at pretty much the trough of the development cycle in terms of land values.
If they really don't want the money, they can also donate it to a nonprofit who might be better able to maintain a community garden or some other use you'd be happy with. There might be a sizable tax writeoff in that too.
Maybe there's an interim arrangement possible, where you can find a community organization that wants to use it for a few years, so you maintain the option of selling it when the market's strong again and the potential proceeds are more attractive?
posted by pete_22 at 9:06 AM on February 13, 2010
The right answer in this situation is usually: sell it to a developer. If your parents don't want to sell it outright, they can sometimes work out a long-term ground lease arrangement that will provide some ongoing income -- but again, it depends on the zoning and the type of development. And as you probably know, we're currently at pretty much the trough of the development cycle in terms of land values.
If they really don't want the money, they can also donate it to a nonprofit who might be better able to maintain a community garden or some other use you'd be happy with. There might be a sizable tax writeoff in that too.
Maybe there's an interim arrangement possible, where you can find a community organization that wants to use it for a few years, so you maintain the option of selling it when the market's strong again and the potential proceeds are more attractive?
posted by pete_22 at 9:06 AM on February 13, 2010
You need to explore this "sentimental reasons" issue. You have a piece of land for which you have no use and holding on to it costs you both time and money and it is a nuisance. The rational action would be to find a local real estate agent and put it up for sale.
You are trading something of little utility to you, a piece of land, for something that has more utility to you, cash. The person you sell it to is just the opposite. They would find more utility in the land than the cash. When you make such an exchange, both of you are better off. It makes more sense to find someone who already has a better purpose for the land than for you to spend time trying to find a better use.
posted by JackFlash at 9:25 AM on February 13, 2010 [3 favorites]
You are trading something of little utility to you, a piece of land, for something that has more utility to you, cash. The person you sell it to is just the opposite. They would find more utility in the land than the cash. When you make such an exchange, both of you are better off. It makes more sense to find someone who already has a better purpose for the land than for you to spend time trying to find a better use.
posted by JackFlash at 9:25 AM on February 13, 2010 [3 favorites]
You must be paying a lot in property taxes for a piece of property that is of no use to you. If you could recoup that amount by leasing it to some type of non-profit, then you might want to hold on to it till values rise, otherwise, it makes little sense to hang on to it.
You might offer to sell it to the adjacent neighbors, they would probably prefer to enlarge their yard than to have a new building on top of them.
Consult a local realtor to find out what it would be worth.
posted by mmf at 10:03 AM on February 13, 2010
You might offer to sell it to the adjacent neighbors, they would probably prefer to enlarge their yard than to have a new building on top of them.
Consult a local realtor to find out what it would be worth.
posted by mmf at 10:03 AM on February 13, 2010
The proceeds may not be lifestyle-changing, but what about being able to get out of the garbage-picking-up, summer-maintenance lifestyle? Sounds like you aren't enjoying it much.
posted by yohko at 11:03 AM on February 13, 2010
posted by yohko at 11:03 AM on February 13, 2010
I know nothing about Jersey City, but is it in a high foot-traffic area?
If so, what about renting it to food carts?
They're insanely popular here in the nooks and crannies of the city here in Portland OR.
posted by j at 11:48 AM on February 13, 2010
If so, what about renting it to food carts?
They're insanely popular here in the nooks and crannies of the city here in Portland OR.
posted by j at 11:48 AM on February 13, 2010
You could make it available to performance artists. This could also attract the interest of developers.
Also, depending on where it is, perhaps you could sell advertising on it.
posted by bingo at 2:38 PM on February 13, 2010
Also, depending on where it is, perhaps you could sell advertising on it.
posted by bingo at 2:38 PM on February 13, 2010
Best answer: Get a construction loan and build something on it. They offer classes on this stuff in colleges (try the business school or the department of city planning).
posted by salvia at 3:17 PM on February 13, 2010
posted by salvia at 3:17 PM on February 13, 2010
And also, renting parking on it to save up some funds of your own to fund that development is a pretty good idea, too.
posted by salvia at 3:19 PM on February 13, 2010
posted by salvia at 3:19 PM on February 13, 2010
Also, if you really can't bother to develop it yourself and don't care about the money, either lease it to urban farmer types or donate it to an affordable housing development nonprofit.
posted by salvia at 3:20 PM on February 13, 2010
posted by salvia at 3:20 PM on February 13, 2010
Best answer: Contact Green Phoenix--they're an urban permaculture group that coordinates projects around creating sustainable gardens that produce food.
They have a substantial presence in the New York area and would very likely be interested in doing something with your space that would be (1) beneficial to you, and (2) beneficial to the community.
Bonus: you'd get to keep the land.
posted by yellowcandy at 3:31 PM on February 13, 2010 [2 favorites]
They have a substantial presence in the New York area and would very likely be interested in doing something with your space that would be (1) beneficial to you, and (2) beneficial to the community.
Bonus: you'd get to keep the land.
posted by yellowcandy at 3:31 PM on February 13, 2010 [2 favorites]
This thread is closed to new comments.
posted by Vaike at 8:57 AM on February 13, 2010 [1 favorite]