Are you holding onto a property in Lehigh Valley without a clear purpose? Each day you keep the property, you’re incurring additional expenses. Before deciding to hold onto it any longer, consider these essential points—it might be time to think about selling your Lehigh Valley home. Wondering how much it truly costs to maintain a property over time? Read on to find out!
Any seasoned property investor will tell you: the quicker you flip a property, the greater the profit margin. Owning real estate incurs costs, and holding onto a property for sentimental reasons or the off chance you “might” need it someday could be needlessly draining your finances. Ideally, your property should provide value now, whether as your primary residence, a rental income source, or a recreational getaway. If your Lehigh Valley property isn’t serving a clear purpose, it may be time to seriously consider selling it.
Costs of Holding a Property in Lehigh Valley
Property Taxes
Property taxes can represent a considerable ongoing expense, especially in areas where tax rates are higher or reassessments frequently increase property values. With recent changes to tax laws, homeowners may find that property taxes are no longer as easily deductible, which can reduce the overall tax benefit of holding onto a property. Over time, the cumulative cost of property taxes can take a significant toll, especially if the property isn’t generating income or serving a primary purpose. Additionally, as property taxes often increase annually, maintaining ownership for longer periods can lead to unexpected rises in costs, placing further financial strain. By choosing to sell your property sooner, you can avoid these compounding tax obligations and free up resources that could be better invested elsewhere. Selling could ultimately save you thousands in taxes over the years, reducing your financial burden and allowing for a fresh start without the weight of increasing property tax costs.
Utilities
Monthly utility costs add up quickly. When you add up electricity, water, gas, and even internet and TV, you may be surprised at how much you’re spending. Even if you’re not living in the property, utilities still need to be maintained to show the home to potential buyers. If your property is older and less energy-efficient, your bills are likely higher than those of a newer home.
Maintenance & Repairs
A commonly used benchmark for maintenance costs is the one-percent rule, suggesting you budget about one percent of your home’s purchase price annually for maintenance. For example, if you purchased your home for $250,000, you might spend around $2,500 yearly on upkeep. While costs vary, this guideline can help investors estimate their annual expenses.
Homeowners Insurance
Your insurance premiums will depend on factors like the property’s size and location. For an average home in Lehigh Valley, annual costs can easily exceed $1,000.
Mortgage Payments
If you’re making monthly mortgage payments on a property you no longer want, it can feel like a financial strain. With the average mortgage payment well over $1,000 per month, holding onto an unwanted property may not make financial sense.
Opportunity Costs
What else could you be doing with the money tied up in this property? You could miss out on more appealing home or investment opportunities. Consider what other possibilities exist and whether they align better with your goals. If the property is not working in your favor, it may be time to move on.
Ultimately, selling your home sooner rather than later can put more money back in your pocket. The longer you hold onto it, the more you’ll have to pay for taxes, upkeep, and utilities. The expenses of ownership add up quickly—so take a moment to crunch the numbers and make the choice that’s best for your financial future!