Disadvantages of Land Ownership

Disadvantages

There are many problems when it comes to having many territories like higher taxation tendencies, no immediate cash flow return and protection of land.

Paying higher taxes is a problem because you are going to shoulder it along with fees and association dues. Taxes differ in its location. Property taxes are commonly assessed based upon three factors: The assessed value of the home as determined by the local government tax appraise. The budget of the local government. A mill rate - a dollar amount assessed in tax for every thousand dollars of assessed value which is determined by dividing the total budget amount over the total assessed value amount of a town. (Lanzaro,CPA).

Buying land properties has a no immediate cash flow return written all over it because you have to pay for fencing costs, it will take more money to cover the land with housing, and it would take more time to develop things. There is also a higher purchase price. You also have to ensure that your land is free from any conditions that make cause it to be unsuitable for development or degrade its value for reselling.

Lastly, protection of land, have to be rich and has a colony to protect your land properties because having many land properties makes it harder for an owner to protect it. The land can be subject to zoning where in the government can get the land for national development reasons, which you cannot refuse but sell the land.

Source:

http://www.streetdirectory.com/travel_guide/69116/property_tips/what_you_need_to_know_about_property_taxes_before_buying_a_home.html

http://howtostartinvestinginrealestate.blogspot.com/2007/07/buying-landadvantages-disadvantages.html

http://www.littlehouseliving.com/homestead-hints-advantages-disadvantages-to-having-land.html

http://wiki.answers.com/Q/What_are_the_disadvantages_for_a_country_that_has_a_lot_of_land

http://wiki.answers.com/Q/What_are_the_disadvantages_of_a_country_having_a_lot_of_land