Hi, new to this sub because I’ve got a chance to buy cheap land, but I’m not sure it’s worth it. Apologies in advance for the length of this post but there are a lot of wrinkles.
-My uncle owns 7 rural acres in northern Maine. He’s getting old and doesn’t go up there anymore, so he’s looking to sell. The plot has a 2-room cabin, but it is in very rough shape and there’s no plumbing or electric. Most importantly, while we do have a deeded right-of-way, the “road” has fallen into disrepair and is completely overgrown. You have to ford a stream and hike 20 mins to access the cabin. Not even an ATV can traverse it. When I say rural I MEAN rural.
-The surrounding acres (including the right-of-way) are owned by a non-profit that is known for gifting its land back to first peoples and the state. So while the land is close to a popular tourist destination, there’s almost zero chance of development in the next 30 years.
-This all screams “pass,” and I hadn’t seriously considered buying it. However, my uncle said he’d sell it to me for $4,000. The state values the property at $45,000 and similarly sized parcels in the area seem to sell for anywhere from $20k-$40k, on average. My uncle claims he pays $320 per year in property tax and insurance, which seems low, but then again, it’s in an unincorporated territory, so maybe?
-Finally, I live VERY far away from Maine, so I have very limited opportunities to use the land or maintain it, let alone fix it up. But $4k seems like a good deal, and given the white-hot market and the fact that institutional investors are buying up all the houses they can, I’m not sure when I’d get another opportunity to buy ANY land, even a parcel like this one. And even if there’s a crash or correction in the real estate market, $4k seems like a pretty safe bet for 7 acres. But then again, is it totally worthless land, even at that price?
TL;DR: My uncle’s offering me 7 acres for $4k, but it’s extremely rural and the deeded right-of-way is basically gone. Is it worth considering?