Are you holding on to a property in Edmonton 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 Edmonton home! How much does holding a property cost in Edmonton? Keep reading to find out!
Ask any one who buys and sells homes on a regular basis and they will tell you this: All things being equal, the faster you make the sale, the more money you will make. Plain and simple, owning property costs money. So if you are holding on to the property for sentimental reasons or because you “might” use it one day, you really are throwing your money away! The property you own should be working for you…NOW. It could be your primary residence; providing a monthly income, or being used for recreational purposes. The bottom line is, if your Edmonton house isn’t doing one these things, it might be time you consider selling it!
Costs of Holding An Edmonton Property
Property Taxes
Regardless where you live, property taxes eat a chunk of your income every month.And while property taxes vary region to region and municipality to municipality, you never hear anyone bragging about how low their property tax bill is! As long as you are listed as the owner of the property, you will be responsible for paying the taxes on it. By selling your house in a timely manner, you can immediately end your tax obligation for that home.
Utilities
Monthly utilities add up quickly, and they never seem to drop either. If you were to add up the amount you’ve spent on electricity, water, gas, tv, and internet I’m sure you’d be shocked at how high that sum really is. Even if you aren’t living in the home while selling it, you will still need to keep the lights and the water on for the people who come to see your house; especially so on Canada. If those pipes ever freeze, MASSIVE bills await! Also, 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 says 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. And keep in mind, the formula shifts depending on the age of your home.
Homeowners Insurance
You can’t get a mortgage without home insurance. And even if you own it free and clear, you will be sure and protect that asset with an insurance policy. The premium for a homeowners insurance policy will vary based on the house and its location. But you can expect to pay over $1000 annually for an average Edmonton 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. And while you can still do it, it sure doesn’t feel good, does it? 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 would you be doing if you could free up the money you have tied up in your home? You could very well be missing out on a better home or investment opportunity. Take a look around at what opportunities are available to you and decide if you are truly happy with your current situation. If the only thing your Edmonton property is doing is costing you time, money and opportunity, it might be time to find a better or at least different home!
As you can see, selling your home now as opposed to later can help you keep more money in your pocket. Each day you continue to own it, you will continue to be financially responsible for it. Those bills and maintenance costs add up quickly. Run the numbers for yourself and make the decision that is most sensible for you!
If this article made you stop and think about selling your Edmonton home for just a moment, maybe its time to talk with SUNRISE HOME BUYERS about how we can help to make that happen. There is NO OBLIGATION and NO PRESSURE. But we can give you options and assist you with a FAST sale of your property in Edmonton, in AS-IS condition and without using a realtor who will ask you to fix up your home with costly repairs prior to listing.