Sell or Rent? That is the Question(s)!
Maybe you’re buying a bigger home to grow your family or downsizing to a smaller home after the kids have gone off to college. You could be relocating to a new city for your career. There are countless reasons why people sell their home; but, they’re all faced with one simple question that has quite the complex answer: Should I sell my home or rent it out? Unfortunately, there is no easy way to make that decision. There are a lot of things to consider and, unlike one of your favorite HGTV shows, it will probably take you longer than a half hour to decide. But, there is help: Start with your finances. Where do you stand to make the biggest return on investment? Can you afford to rent your home out while paying another mortgage when you go to buy? Would your property bring in enough of a return as a rental? Through our partnership with OwnAmerica®, we offer a case study calculator to help you determine if a property would make a good investment. As the saying goes, taxes are one of the only certain things in life and you can be certain you’ll deal with tax issues no matter what you decide. The U.S. government offers a nice tax break for homeowners that have lived in their home for two of the past five years. Leaning toward renting? Consider the out-of-pocket property expenses that you may incur (i.e. repairs, cleaning, utilities and even advertising the space), along with property depreciation. Fortunately, these expenses are all deductible when it comes time for your tax return. But, if you ever plan on selling, keep in mind, tenants may not be as good to your property as you would be. Consider possible damages and even potential legal or financial tenant-related issues that may arise. Sell or rent? Rent or sell? Sell or… need more help? Talk with a Real Estate expert before you make a final decision. They’ll help you navigate through the selling or renting process.
Be sure to consider the economy when you’re ready to list your home for sale. Right now, home inventory is low and the average sale price is up, meaning you have a better chance of selling your home at both a faster pace and more favorable price than you would when the market is not doing so well.
