Are you holding on to a property in Warner Robins and you aren’t exactly sure why?
Every day that you continue to own that 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 Warner Robins home! How much does holding a property cost in Warner Robins? Keep reading to find out!
Ask any property flipper and they will tell you this: the faster you make the flip, the more money you will make. Plain and simple, owning real estate costs money. And if you are holding on to the property for sentimental reasons or because you “might” use it one day, you are only throwing your money away. The property you own should be working for you NOW. It can be your primary residence, providing a monthly income, or be used for recreational purposes. If your Warner Robins house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding A Property In Warner Robins
Property Taxes
Property taxes can be high With recent changes to the tax code, they are no longer deductible either. As long as you are listed as the owner of the home, you will be responsible for the taxes on it. By selling your house in a timely manner, you can immediately end your tax obligation for the home.
Utilities
Monthly utilities add up quickly. If you were to add up the amount you’ve spent on electricity, water, gas, tv, and internet you might be surprised at how high that number is. Even if you aren’t residing in the home while selling it, you will still need to keep the lights and the water on for the people who come to see your house. If your house is older and less energy efficient, you are likely to have utility bills significantly higher than what you would find in a new home.
Maintenance & Repairs
A good rule of thumb for maintenance costs is the one percent rule. This rule states that you should plan to spend about one percent of your purchase price on maintenance each year. For example, if your house was purchased for $250,000, you should plan to spend about $2,500 on home maintenance each year. Of course, these numbers can vary widely, but many investors use this formula to estimate costs. An extra house can not make money and will only fall into disrepair if not used, Just like a swimming pool that does not get used. Bad things start growing and good things start falling apart.
Homeowners Insurance
The premium for a homeowners insurance policy will vary based on the house and its location. You can expect to pay over $1000 annually for an average Warner Robins home. If the house is abandoned or vacant, the insurance company may not insure the AT ALL. Some insurance companies will insure a vacant house, but it is very expensive.
Mortgage Payments
It can be difficult to come up with a mortgage payment each and every month for a property you don’t want to own. The average mortgage payment nationwide is well over $1000 each month. Some people are struggling to pay thousands of dollars each month when in reality they would be much better off selling the property. Companies that buy houses, like Real Estate Problem Solver, Don’t hold an empty property any longer than necessary for that very reason.
Opportunity Costs
What else could you be doing with the money you have tied up in the house? You could very well be missing out on a better home or investment opportunity. That house is idle money not working for you. It could be making more money elsewhere. Look around at what else is out there and decide if you are truly happy with your current situation. If your property isn’t doing anything for you, it might be time to find something new! If there are other loans or debts that are costing interest. The house you haven’t sold is costing the interest on the mortgage AND the interest of the other loans you have that are not paid off.
As you can see, selling your home now as opposed to later can help you keep more money in your pocket. For every day you continue to own it, you will also continue having to be financially responsible for it. The bills and maintenance costs add up quickly. Run the numbers for yourself and make the decision that makes the most sense for you!