Are you holding a property in Chicago without a clear reason? Every day you keep it, you’re spending money. Before you decide to hold it for another day, consider this: it might be the right time to sell your Chicago home! Wondering about the costs of holding a property in Chicago? Keep reading to find out!
Here’s the straight talk from property flippers: the quicker the flip, the more cash in your pocket. Owning real estate comes with a price tag. If you’re holding onto a property for sentimental reasons or a vague future use, you’re tossing money out the window. Your property should be working for you right NOW—whether as your main residence, a source of monthly income, or a spot for recreational fun. If your Chicago house isn’t serving one of these purposes, it’s high time to think about putting it on the market!
Costs of Holding A Property In Chicago
Property Taxes
Property taxes can get pretty steep, especially since you can’t deduct them anymore due to recent changes in the tax code. If your name’s on the home ownership papers, the tax burden falls on your shoulders. Selling your house promptly allows you to cut ties with the tax responsibility for that property right away. It’s a quick way to shake off that financial load.
Utilities
Your monthly bills can pile up fast! When you tally up what you’ve shelled out for electricity, water, gas, TV, and internet, you might be taken aback by the grand total. Even if you’re not living in the house while trying to sell it, you’ve got to keep the lights on and the water flowing for potential buyers checking out your place. If your home is on the older side and not so energy-efficient, chances are your utility bills will be noticeably higher compared to what you’d face in a newer home. Don’t be surprised if those costs add up quicker than you’d expect!
Maintenance & Repairs
Here’s a simple tip to figure out how much to set aside for keeping your home in shape—it’s called the one percent rule. Basically, you should plan to spend about one percent of what you paid for your house on maintenance each year. For instance, if your home cost $250,000, it’s a good idea to budget around $2,500 annually for things like repairs and upkeep. Just remember, these numbers can change, but many smart investors find this rule a helpful way to guess how much they might need for home care.
Homeowners Insurance
The cost of your home insurance can change depending on where you live and the type of house you have. For a typical home in Chicago, you might end up shelling out more than $1000 each year. Keep in mind that this amount can fluctuate based on specific details about your house and its surroundings.
Mortgage Payments
Making a monthly mortgage payment for a property you’re not keen on owning can be tough. Across the country, the typical mortgage bill exceeds $1000 every month. Many folks find themselves grappling with shelling out thousands of dollars monthly, but truth be told, selling the property would likely be a smarter move for them.
Opportunity Costs
Have you ever thought about the possibilities for the money locked up in your house? Maybe there’s a fantastic home or investment opportunity waiting for you, and you might be letting it slip by. Take a look at what’s available, and ask yourself if you’re genuinely content with where you are now. If your property isn’t working in your favor, it could be the right moment to explore new options and make your money work harder for you!
Take a peek at this: deciding to sell your house sooner rather than later can put extra cash in your pocket. Every day you’re holding a property means more money you’ll need to shell out for bills and upkeep. Those expenses pile up fast! Crunch the numbers on your own and choose the option that’s best for you. Don’t let those ongoing costs sneak up on you!