Holding onto an expensive property can cost you more than just the mortgage and upkeep. There are also opportunity costs, which involves figuring out how much money has been lost in terms of investment returns by not selling your house now or renting it out to generate income. Opportunity costs involved with owning a home include: missed tax savings; underutilized equity (and thus depreciation); potential rental income that could be generated if the homeowner rented his/her home instead of holding on to it for too long – assuming they have good credit scores and don’t think their neighborhood may go downhill any time soon!
In this blog post we will explore these holding costs so you know whether or not keeping your San Diego-based property is worth the money and hassle. It may just be the perfect time for you or your family to sell your home, and rid yourself of the burdens of owning like maintenance, utilities and many more.
Utilities
Imagine you’re in the middle of a heat wave and there’s no air conditioning. You decide to abandon your home, but before leaving for good you take one last look around. In doing so, you notice that several different utility meters are constantly ticking away like time bombs ready to explode at any moment because it costs money even when appliances and systems aren’t being used!
As long as utilities continue flowing into our homes- water turning up taps or power keeping appliances plugged in – we will be required by law (in most cases) to pay monthly bills until such services have been disconnected. In addition, if you are planning to list your house for sale with a realtor for a conventional sale, you will need to leave utilities connected so that prospective buyers can view the home.
Property Taxes
Even if you own the property outright and are no longer responsible for a mortgage on the home, or if you inherited a property that was completely paid off, property tax is still a financial obligation based on the property that doesn’t go away. The property tax assessments in the San Diego area can be exorbitant and as long as you own the home, you are responsible for paying the property taxes on your home.
Homeowners Insurance
Your mortgage company will require that you have homeowners insurance in place to protect them from any potential disasters or damages as long as they own your house. This is another monthly cost that goes into holding onto a property instead of selling it fast and for cash to a real estate investor.
Home Maintenance
Maintenance is inevitable and in today’s society, houses are built to last. There will be times where you’ll need a new roof or tree removal service as well as other more minor fixes that require an investment of time and money. The cost for this type of maintenance can vary depending on the size of your property but it is essential, particularly if you plan on selling the home through a traditional route, that all systems remain functional and all maintenance is completed.
Mortgage Payments and Interest Rates
Typically a homeowner would need to make mortgage payments for the entire time they are in possession of their property. This means that the longer you maintain ownership of a home, the more money funneling into the property each and every month. However, if you decide to sell your home through cash offers from an investor instead, then you will not have any more monthly payments and interest accrues.
Opportunity Costs
One of the opportunity costs of holding onto a property is that you could be making money by selling your home to an investor. When an investor buys it fast for cash, there are no more monthly fees or insurance premiums to pay.
In addition, instead of spending money and time each month on a property you aren’t happy with or no longer fits your lifestyle, there are so many other amazing things you could be doing with your life. You could be traveling, spending time with family, looking for your dream home or simply just enjoying the adventure that is your life.
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!
A home is a big investment of both time and money, particularly in San Diego where overall property values are so high. If you’re not happy with your home or it’s no longer a good fit for you, this could be the right time to sell and find that perfect property or brand new life. There is no better or faster way to sell in the San Diego area than to a family owned company like Trusted House Buyers.
