Are you holding on to a property in Kansas City 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 Kansas City home! How much does holding a property cost in Kansas City? Keep reading to find out!
If you ask any property flipper, they will tell you one thing: the faster you make the flip, the more money you will make. It’s simple, really. Owning real estate comes with costs, and if you’re holding onto a property for sentimental reasons or just because you “might” use it one day, you’re essentially throwing your money away. Your property should be working for you NOW. Whether it’s your primary residence, generating monthly income, or serving as a recreational property, if your Kansas City house isn’t fulfilling any of these purposes, it might be time to consider selling it!
Costs of Holding A Property In Kansas City
Property Taxes
Property taxes can be a significant expense, especially since recent changes to the tax code have eliminated the ability to deduct them. As the homeowner, you are responsible for paying these taxes. However, selling your house quickly can provide a solution to your tax obligations related to the property.
Utilities
Monthly utility expenses accumulate rapidly. When you tally up the costs for electricity, water, gas, TV, and internet, you might be taken aback by the total. Even if you’re not currently living in the house while it’s on the market, maintaining essential services like electricity and water for potential buyers viewing the property is necessary. In the case of an older and less energy-efficient home, you’re likely to encounter utility bills considerably higher than those associated with a newer residence.
Maintenance & Repairs
When it comes to estimating maintenance costs for your property, the one percent rule is a reliable guideline to follow. According to this rule, you should set aside approximately one percent of your property’s purchase price for annual maintenance expenses. For example, if you purchased a home for $250,000, it is recommended to budget around $2,500 per year for home maintenance. While these figures can vary, many investors find the one percent rule to be a useful formula for estimating potential costs.
Homeowners Insurance
The premium for a homeowners insurance policy depends on factors such as the house and its location. Anticipate an annual cost exceeding $1000 for an average policy Kansas City home.
Mortgage Payments
Meeting a monthly mortgage payment for a property you have no desire to own can pose challenges. The average nationwide mortgage payment surpasses $1000 monthly, and for some individuals, managing payments of thousands of dollars each month can be a financial burden. In reality, selling the property might be a more advantageous option for those facing such challenges.
Opportunity Costs
Consider alternative uses for the funds invested in your house. You might be overlooking opportunities for a more suitable home or a better investment. Explore available options and assess whether you are genuinely content with your current situation. If your property isn’t serving your needs, it could be the opportune time to explore something new!
Clearly, selling your home sooner rather than later can preserve more funds for you. With each passing day of ownership, you also sustain ongoing financial responsibilities for the property. The accumulated bills and maintenance expenses can become substantial swiftly. Take a moment to crunch the numbers and make the decision that aligns most sensibly with your financial goals!