Are you holding on to a property in Fort Wayne 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 Fort Wayne home! How much does holding a property cost in Fort Wayne? Keep reading to find out!
Ask any property investor and they will tell you this: the faster you make the flip it, the more money you will make. Plain and simple, owning real estate costs money. Real estate can also be a great money maker! 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. Don’t be a property hoader. Get rid of it! 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 Fort Wayne house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding A Property In Fort Wayne
Property Taxes
Property taxes in Fort Wayne can be high depending on a multitude of things. Area you live, size of the property, and what type of exemptions you have are just a few factors that go into the tax process. 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
Another thing to consider when holding onto a property in Fort Wayne are all of the 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. Spending more and not sure why? Have your home evaluated for energy efficiency.
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 Fort Wayne home.
Mortgage Payments
It can be difficult to come up with a mortgage payment in Fort Wayne each and every month for a property you don’t even 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. Maybe you want to travel and not keep investing. Either way, 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 make a change!
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!