You own a property in Montreal, but you’re not sure why? Every day you spend as an owner costs you money. Before you decide to keep your property for another day, take the information presented below into consideration. Now may be the time to think about selling your Montreal home! How much does it cost to keep a property in Montreal? Read on to find out!
Any real estate investor will tell you: The faster you resell, the more money you’ll make. It’s quite simple: owning your own home always ends up being expensive. If you’re holding on to a property for sentimental reasons or because you think that one day it might be of service, you’re throwing your money away. The property you own should be serving you right now. It could be your primary place of residence, an income-generating property, a recreational site, whatever. As long as it serves. If your Montreal home doesn’t play a role in your life right now, it may be time to think about selling it!
The costs of owning a home in Montreal
Taxes
The latest tax hikes are costing some homeowners a lot of money. As long as you officially own the building, you’ll be responsible for paying the taxes. If you manage to sell your home within a reasonable timeframe, you can stop paying property taxes right away.
Monthly invoices
Total monthly bills are higher than you think. If you took the time to add up your electricity, gas and wood bills with your TV and Internet bills, you’d be amazed at how much the total adds up to. Even if you don’t live in the property while it’s for sale, you’ll still have to pay for a minimum of services for your visitors. If you own an older home that’s less energy-efficient than average, you’re likely to pay more for Hydro than if you lived in a newer home.
Maintenance and repairs
A good trick for calculating maintenance costs is to use the one-percent rule. This rule indicates that one should generally plan to spend one percent of the purchase price of a property to maintain it. For example, if you bought your home for $250,000, you should expect to spend about $2,500 a year. Obviously, this is only an approximation, and costs can vary widely, but many investors use this formula to estimate costs.
Insurance
The cost of home insurance varies according to the property insured and its location. In general, we expect to pay around $1,000 a year to insure the average Montreal home.
Mortgage payments
Making monthly mortgage payments on an unwanted home can be difficult. The average mortgage payment in the country is over $1,000 per month. Some people find it hard to make payments of several thousand each month, when they would surely be in a much better position if they sold their property.
Missed opportunities
What could you do with the money that’s tied up in your home? You may well miss the opportunity to buy a home more suitable than your own, or to invest somewhere where your money would pay off handsomely. Take the time to look at your other opportunities, then ask yourself if you’re really satisfied with your current situation. If your property isn’t serving you in any way, maybe it’s time to find something new!
You’ve got it: selling your home sooner rather than later will keep as much money as possible in your pocket. Every day you’re a homeowner is a day you’re financially responsible. Bills and maintenance costs add up to a lot of money. Do your calculations, then make the decision that will benefit you the most!
