Holding A Property? What is it Costing You in Dallas?

Are you holding on to a property in Dallas 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 Dallas home! How much does holding a property cost in Dallas? 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 Dallas house isn’t doing one these things, it might be time you consider selling it!

Costs of Holding A Property In Dallas

Property Taxes

Property taxes can be a significant financial burden, especially since recent changes to the tax code mean they’re no longer deductible. If you own a property, you’re responsible for paying these taxes, and they can add up over time. However, by staying on top of your property ownership and considering timely sales, you can manage and potentially reduce your tax obligations. Selling your property promptly not only allows you to avoid ongoing tax payments but also frees you from the responsibilities and expenses associated with holding a property, providing you with more financial flexibility and peace of mind.

Utilities

Monthly utilities can quickly become a substantial financial commitment, as the combined costs of electricity, water, gas, TV, and internet can add up faster than one might expect. Even if you’re not currently residing in the home you’re selling, you’ll still need to ensure that essential utilities like electricity and water remain active to accommodate potential buyers who come to view the property. This means keeping the lights on and the water flowing, which can contribute to your overall expenses. Moreover, if your property is older and lacks energy-efficient features, you’re likely to encounter even higher utility bills compared to those associated with newer homes. These ongoing expenses can present a considerable challenge, particularly when holding a property for an extended period. However, there are strategies you can implement to mitigate these costs, such as investing in energy-saving upgrades or exploring alternative utility providers for potential savings. By carefully managing your utility expenses, you can alleviate some of the financial burdens associated with property ownership while enhancing the appeal and value of your home in the eyes of prospective buyers.

Maintenance & Repairs

A widely accepted guideline for estimating maintenance costs is the one percent rule. According to this rule, homeowners should allocate approximately one percent of the property’s purchase price towards maintenance expenses each year. For instance, if your house was bought for $250,000, you’d anticipate spending around $2,500 annually on home maintenance. However, it’s essential to recognize that these figures can vary significantly based on factors such as the age and condition of the property, its location, and specific maintenance needs. Nevertheless, many property owners and investors rely on this formula as a helpful starting point for budgeting and forecasting maintenance expenditures, aiding in prudent financial planning when holding a property for the long term.

Homeowners Insurance

Homeowners insurance premiums fluctuate depending on factors like the property’s characteristics and its geographical location. For an average home in Dallas, it’s typical to budget over $1000 annually for insurance coverage. However, it’s crucial to note that insurance costs can differ significantly based on various elements, including the size of the property, its age, the materials used in construction, and the specific risks associated with the area. While $1000 serves as a general estimate, obtaining quotes from insurance providers tailored to your property’s unique features and location is advisable for accurate budgeting and adequate coverage when holding a property..

Mortgage Payments

Meeting the monthly mortgage payment for a property you no longer wish to own can pose a significant challenge, especially when holding a property you no longer desire. Nationwide, the average mortgage payment exceeds $1000 per month, placing a considerable financial strain on individuals who find themselves in this situation. Many individuals struggle to make payments of thousands of dollars each month, despite the fact that selling the property might ultimately be a more financially prudent decision. While mortgage payments can vary based on factors such as interest rates, loan terms, and property values, it’s essential to consider your financial circumstances and explore options such as selling the property to alleviate the burden of ongoing mortgage payments. Making informed decisions regarding property ownership can help you better manage your finances and achieve greater financial stability in the long run.

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!

How Much Does Holding A Property Cost in Dallas?