The overall costs that are incidental to real estate property ownership. These costs include maintenance expenses, insurance costs, taxes and levies, etc. Carrying costs/ charges in real estate are the recurring expenses paid by an investor during the holding period (the period of time during which the property is held). Carrying costs are a function of an array of factors including a property’s age, location, type of financing, etc. Carrying costs have to be set against the total acquisition cost of a property for an investor to decide whether it is viable to hold the property or not.
Carrying costs are also referred to as holding costs.
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