Real Estate Trap Secrets Costing You Monthly
Common Hidden Costs in Real Estate
One of the most pervasive traps in real estate is the unexpected maintenance cost. Properties require regular upkeep, and failure to anticipate these expenses can lead to significant financial strain. For instance, a seemingly minor plumbing issue can escalate into a costly repair if not addressed promptly. According to the National Association of Home Builders, annual maintenance costs can range from 1% to 4% of a property's value1.
Another hidden cost is property taxes, which can fluctuate based on local government assessments. Many investors overlook the impact of rising property taxes, which can significantly affect cash flow. It's crucial to stay informed about local tax rates and potential increases, which can be researched through local government websites.