Are you holding on to a property in Greater Cincinnati Area 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 Greater Cincinnati Area home! How much does holding a property cost in Greater Cincinnati Area? 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. Often times, investors or owners hold onto a property for sentimental reasons because either it was inherited or they have some other emotional tie to it. The problem is that these emotions can be costing you money! 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 you are holding a house in Pleasant Ridge, Oakley, Madisonville, Norwood or some other area in Cincinnati, and the house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding A Property In Greater Cincinnati Area
Property Taxes
Property taxes can be costing you thousands of dollars. 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 save money and end your tax obligation on the property.
Utilities
Monthly utilities add up quickly. Not knowing the total costs of your utility bills can be adding up into a surprisingly large bill, eating a hole in your wallet. 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.
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 Greater Cincinnati Area home.
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.
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. Look around at what else is out there and decide if you are truly happy with your current situation. How long do you think this hot market in Cincinnati will last? If you end up trying to time the market, there’s a good chance you will miss out. The property values in Cincinnati have been doing great the past few years. Cash out now while you can!
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!