Are you holding on to a property and you aren’t exactly sure why? Every day that you continue to own the property, you are spending money on it. Before you hold on to it for another day, consider the below points. It might be time to think about selling your home! How much does holding a property cost? Keep reading to find out!
Any property flipper knows that you make more money the quicker you flip. Put simply, owning real estate costs money. If you’re holding a property simply for sentimental reasons or because you “might” use it one day, you are only throwing your money away. The property you own should work for you NOW. It can be used as a primary residence, provide a monthly income, or be used for recreational purposes. If your house isn’t doing one these things, it may be time to consider selling it!
Costs of Holding A Property
With recent changes to the tax code, property taxes are no longer deductible and can be high. If you are the listed owner of the house, you will be responsible for its taxes. You can promptly end your tax obligations to the home by selling it.
If you tallied the amount you’ve spent on monthly utilities such as electricity, water, gas, TV, and the internet, you might be surprised at how much it all costs. Even if you aren’t living in the home you’re selling, you will still need to keep the lights and water on for the people who come to see your house. If your house is older and less energy efficient, your utility bills are likely to be much higher than a new home’s.
Maintenance & Repairs
The one percent rule is a good one for maintenance costs. Plan to spend around one percent of your purchase price on maintenance each year. For example, if you purchased your house for $250,000, you should plan to spend around $2,500 yearly on home maintenance. These numbers can vary widely, but many investors use this formula to estimate costs.
The premium for a homeowners insurance policy will vary based on the house and its location. For an average home, expect to pay over $1000 annually.
Coming up with a monthly mortgage payment for an unwanted property can be difficult. The nation’s average monthly payment is well over $1000. Some may be struggling to pay thousands each month when they would be better off selling the property.
What else could you be doing with the money you have tied up in the house? You could be missing out on a better home or investment opportunity. See what’s out there and decide if you are truly happy in your current situation. It may be time to find something new if your property isn’t doing anything for you!
As you can see, selling now rather than later can save you thousands. You are financially responsible for your property each day that you own it. Bills and maintenance costs add up quickly. Run the numbers for yourself and make the decision that makes the most sense for you!
Are you holding onto a property you aren’t using? We can help! Send us a message or give us a call today! (832) 662-2202