Are you holding on to a property in Miami but not exactly sure why?
It can be difficult to finally let go and sell a property you’ve lived in for years or even list a property you’ve remodeled specifically to sell. But, before you decide to wait even one more day before selling, you should know how much it costs to hold onto a Miami property!
Any investor will tell you the faster you flip, the more money you make. Owning even vacant real estate costs money. And not to mention there’s the risk of vandalism and damage if you leave an empty property without tenants for too long.
Real Estate Investments Should Make You Money!
Any property you own should be working for you NOW whether as your primary residence, a rental that provides additional income, or as a recreational property that isn’t a burden on your finances. If your Miami house isn’t doing one of these things, it might be time to consider selling it!
Property taxes can be high. And with recent changes to the tax code, they are no longer deductible either.
As long as you’re listed as the owner of the home, the one responsible for paying the taxes will be YOU. But, by selling in a timely manner (without any unnecessary delays), you will immediately end your tax obligation to the property in question.
Every homeowner (and tenant) will tell you that monthly utilities add up fast.
Anyone who hasn’t rented privately or had to cover their own utility bills would be shocked to hear how much people typically spend yearly on electricity, water, gas, cable, and internet.
Plus, if your house is an older build and less energy efficient, chances are your bills could be significantly higher than a new, more up to date house.
Maintenance & Repairs
A good rule of thumb for maintenance costs is the one percent rule. This rule states that maintenance costs on average each year should be about 1% of your purchase price.
For instance, if you purchased a property for $250,000, your estimated yearly maintenance costs should be about $2,500. Of course, these numbers can vary widely, but many investors use this formula to estimate costs.
The premium for a homeowner’s insurance policy will vary based on the house and where it’s based. You should expect to pay over $1000 annually in homeowner’s insurance on the average Miami home.
It can be a challenge for some homeowners to pay the mortgage on a property they love, let alone on one they don’t need or want to keep.
And with the average mortgage payment nationwide being well over $1000 every month it’s no wonder more and more families are facing unforeseen financial difficulties.
If you’re struggling to keep up with the mortgage each month, perhaps you should consider selling and finding a cheaper elsewhere.
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 potentially attractive investment opportunity or a nicer property that’s better suited for you and your family. Always stay up to date on what your options are and take time to decide whether you’re truly happy with your current situation. If your property isn’t doing anything for you, it might be time to find something new!
As you can see, selling your home now as opposed to later could help you save money!
Do the math and work out exactly how much your unwanted property is costing you! Once you know what the numbers really look like, take the next step and follow whichever path suits you and your family best!