Are you holding on to a property in Fort Myers 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 Myers home! How much does holding a property cost in Fort Myers? Keep reading to find out!
Ask any property flipper and they will tell you this: the faster you make the flip, the more money you will make. Plain and simple, owning real estate costs money. And 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. 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 Myers house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding A Property In Fort Myers
Property Taxes
Property taxes can be high 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
Managing monthly utilities can often feel like a constant balancing act, with costs accruing faster than one might expect. When you take a moment to tally up expenditures on essentials like electricity, water, gas, television, and internet, the total can be eye-opening. These expenses are not just recurring but can also vary widely depending on factors like usage patterns, household size, and the efficiency of appliances and systems. For homeowners preparing to sell their property, these costs can become particularly noticeable, especially when considering the need to maintain certain utilities even if the home is temporarily vacant. Ensuring that lights are on and water is running during showings is essential for prospective buyers to experience the property comfortably and fully, potentially impacting their decision-making process.
Moreover, the age and energy efficiency of a home play crucial roles in utility expenses. Older homes, often equipped with outdated insulation, appliances, and heating/cooling systems, typically incur higher utility bills compared to newer, more energy-efficient counterparts. This disparity underscores the importance of investing in energy-saving upgrades and renovations, not only to reduce ongoing utility costs but also to enhance the marketability and appeal of the property when it comes time to sell. By addressing these factors proactively, homeowners can better manage their finances and potentially increase the overall value of their home in a competitive real estate market, all while ensuring that operational costs remain as efficient and cost-effective as possible.
Maintenance & Repairs
The one percent rule for maintenance costs provides a useful guideline for homeowners and property investors to anticipate and budget for upkeep expenses over time. By suggesting that approximately one percent of the purchase price should be allocated towards maintenance annually, it offers a straightforward method to calculate potential expenditures. For instance, if a property is acquired for $250,000, following this rule implies setting aside around $2,500 per year for maintenance. This approach helps in planning for regular repairs, replacements, and improvements, thereby ensuring the property retains its value and functionality.
However, it’s important to recognize that the actual maintenance costs can vary significantly based on several factors. These include the age and condition of the property, its location, the quality of materials used in construction, and the specific features or amenities present. Older homes might require more frequent repairs or renovations compared to newer constructions, while geographical factors such as climate can influence maintenance needs (e.g., weatherproofing in harsh climates). Moreover, proactive maintenance and timely repairs can potentially reduce long-term costs by preventing larger issues from developing.
While the one percent rule serves as a practical starting point for estimating maintenance expenses, it’s advisable to tailor financial planning to the specific characteristics and needs of the property in question. This might involve periodic assessments, consulting with maintenance professionals, and adjusting budgets accordingly to ensure the property remains in good condition and retains its value over time. Ultimately, proactive management of maintenance costs contributes to the overall financial health and longevity of real estate investments.
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 Myers home.
Mortgage Payments
It can be difficult to come up with a mortgage payment each and every month for a property you don’t 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. 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 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!