Holding cost

Holding cost is the total net cost of owning an asset — typically a property, vehicle, or investment — over a defined period. For investment properties, holding costs include all expenses required to maintain ownership, offset by any income the asset generates.

Property holding costs typically include

• Loan interest (the largest component for leveraged investors)
• Property rates and land-based tax
• Building and landlord insurance
• Maintenance and repairs
• Property management fees
• Owners association fees (for shared-ownership buildings)
• Depreciation (non-cash, but tax-relevant)

What holding costs do not include

• Transfer taxes and acquisition costs (one-off purchase costs)
• Capital gains (or losses) on eventual sale
• Loan principal repayments (these build equity, not a cost)

Why holding costs matter

Understanding your true holding cost helps you model cash flow, assess cash flow position, and make informed decisions about whether to hold, sell, or refinance an investment property.

Use the HoldingCost property holding cost calculator to model your exact holding cost scenario.