If you are a homeowner and have never thought about selling your house, maybe because you don´t want to live in the place you love most or because you are comfortable where you are, prepare yourself by knowing the less obvious costs of owning a house. There are more costs to consider when owning property than you really think, and sometimes a Leaseback can be a good solution for you, taking into consideration that you could avoid homeownership costs.
Generally, people always dream about owning their own place. But while they are daydreaming, they will focus on just a few of the costs of homeownership, such as the listing price, mortgage payments, and the cash flow they need, in order to determine what kind of property they can afford, or sometimes if they can really afford to buy a house at all. However. There are some hidden costs, that are not as obvious as the monthly payments associated with homeownership that can really affect your budget.
We identified and analyzed, some of the most common expenses that will show you, why a Leaseback will be a good option if you already own a property and have a tight budget:
First of all, we have the unavoidable costs. These include homeowner’s insurance, property taxes, and utilities. These can be avoided if you decide to sell your property and perform a leaseback. You won’t have to worry about those expenses anymore. This has become one of the most attractive tools for Zelltors (Real Estate Professionals Certified on Residential Leasebacks through the Zelltor.Com Platform).
According to the 1% rule, every homeowner should set aside, at least one percent of their property value, every year for home maintenance. So, let say your house is worth $300.000, you should be setting aside, $3,000 per year, or $250 per month. This will help you ensure that you have enough money to keep you house in good working order, because, let´s be real, who really wants to deal with a leaky roof?
However, if you are not the owner of the property, because you decided to Sell and stay at your home, you won´t have to deal with those unexpected repairs, the new owner will have.
Planning costs ahead of time
In addition to the mortgage payments, the property taxes and insurance, you will have to think about utilities, Homeowners Association Fees (HOA), and other expenses such a cable and internet. It´s very important to take these additional monthly costs into account, because if you don´t, you might find your budget too tight to meet your other multiple financial obligations. But, if you think about Leaseback, you can save all that money for yourself, plus you will cash out your equity and spend it as you desire.
When considering a Leaseback, you should always think about what’s best for you and your family. It’s very important, to get a complete and accurate picture of how much you are really going to save by Selling and Staying at your home, instead of continue living at your own place and being “house poor”.