Property Taxes Based on Assessed Value and Local Rates
Property taxes are one of the largest carrying costs and are based on the assessed value of the land and any improvements, multiplied by the local tax rate.

• Typical property tax rates range from 1% to 3% of assessed value annually
  
• Example: A $1,000,000 assessed property at a 1.5% rate = $15,000/year
  
• Taxes may increase with reassessment after development or sale
  

Insurance Costs Vary by Property Type and Location
Insurance premiums depend on the type of coverage, value of improvements, geographic risks (e.g., flood, wildfire), and whether the land is vacant or developed.

• Vacant land: $500–$2,000/year depending on liability coverage
  
• Improved land with structures: $2,000–$10,000+/year depending on size and use
  
• Additional coverage may be needed for flood, environmental risk, or builder’s risk
  

Ongoing Maintenance and Site Management
Maintenance costs depend on the condition, size, and use of the land. Even undeveloped parcels require basic upkeep for compliance, safety, and asset preservation.

• Basic land maintenance: $1,000–$5,000/year (mowing, fencing, erosion control)
  
• Improved property: $5,000–$20,000+/year (repairs, landscaping, utilities, security)
  
• Stormwater, utility access fees, and HOA charges may also apply in some jurisdictions