Are you holding on to a property in San Antonio 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 San Antonio home! How much does holding a property cost in San Antonio? Keep reading to find out!
Ask any property investor and they will tell you this: the faster you can turn the property around, the less it will cost you. Plain and simple, owning real estate costs money. And many times when someone is holding on to a property for sentimental reasons or because they “might” use it one day, they are only throwing money away. The property you own should be working for you NOW. It can be your primary residence, a property providing a monthly income, or one that can be used for recreational purposes. If your San Antonio house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding A Property In San Antonio
Property Taxes
Property taxes can are high in the state of Texas, and they are no longer deductible if you are just holding on to a vacant home. As long as you are listed as the owner of the home, you will be responsible for the taxes on it. Or if the property is still in someone else’s name, the taxes continue to build up until you sell the property. By selling your house in a timely manner, you can immediately end your tax obligation for the home.
If your property has fallen behind on taxes, you can still sell the property, but the longer you wait the more the tax burden will continue to add up.
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 need to visit 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.
Even a vacant property needs upkeep. Yards need to be mowed, paint touched up, and rotten boards replaced. The cost of the materials is one thing, but you also have to factor the value of your time to address any maintanance and repairs.
A home that needs major repairs can cost tens of thousands of dollars to repair. You have to decide if it is better for you to put a bunch of money into this property or you will be better off selling the property as-is. If you would like to sell a house that needs expensive repairs you should consider selling directly to a professional home buyer as part of your strategy.
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 San Antonio home.
Insurance costs can be more or less based on the value of the home, the location of the home, and the current condition of the home. Many insurance providers will not even offer insurance on a vacant property.
Mortgage Payments
It can be difficult to come up with a mortgage payment each and every month for a property. The average mortgage payment nationwide is well over $1000 each month. Paying thousands of dollars each month can be quite a struggle when in reality they would be much better off selling the property.
If a property does fall behind on the mortgage payments, you can still sell the property. Keep in mind that the longer you wait, the more late payments and late fees will add up.
Opportunity Costs
Opportunity costs are simply the things that you are missing out on by not making a decision. 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 a better place to invest that money. Think about the pros and cons of selling your property. Is the property still making you happy? Is it time for you to make a move? 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 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!