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!
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 Kansas City house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding A Property In Kansas City
Property taxes can be very high with recent changes to the tax code, potentially into the thousands of dollars per year! These are no longer tax deductible either. By selling the home quickly, you can stop building up the tax bill for the property immediately.
Property utilities can really add up on a property. Between the gas bill, electric, phone/internet, and cable bill you can be spending a lot of money every month without even realizing it. Just add up all the utilities you spend in a month and you may be surprised! If you’re living in an older home, the bills may be much higher as well than if you moved into a more modern, better insulated property.
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.
There are many factors that determine the price you pay for insurance such as location, home age, carrier and what you are covering. You can expect to pay over $1000 annually for an average Kansas City home.
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.
This is a big one. If you have equity in the home, what else could you be doing with the money that you have tied up? If you don’t absolutely love this property and what it is doing for you, the money may be put to better use in another way!
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!