When you own a property and you aren’t using it, or you decide to move to a new home instead of the one you currently have, there are a couple of options for that current property. One of those is to sell the place you have now, and the other one is to rent that place out. But which will be the best choice for your needs? Which will bring you the best return on your investment? That can depend on a number of things, so it’s important to ask the right questions before you make a decision. Here are some things to consider.
Do You Want to Handle a Rental Property?
Not everyone wants to be a landlord. Some people would much rather sell their house and buy another one, so they are completely done with the other house. By doing that they end their ties to that location, and their responsibility to do things like paying property taxes and insurance premiums on that house. Other people don’t mind having a rental property, or they will simply hire a company to manage it so they don’t have to worry about maintenance or other issues.
How Far Away From the Property Will You Be Living?
If you live close to the property it can be easier to have it as a rental than it is if you live further away. Even if you have a company managing the rental property for you, there still may be concerns that crop up from time to time. If that’s the case, you want to be able to address those issues. From far away that’s not always easy, which is why many people who rent out their old house when they move do so only if they still live in the immediate area.
What Are the Property Values Like Right Now?
If property values are low and you won’t get a lot out of your house by selling it, renting it could be the answer. That can be done until the market and interest rates are better, at which time it could be sold. But if you’re in a strong sellers’ market right now and the property values are high, selling might be the right choice because you could get more for your home that way. It can make a big difference in how much you get for your home when you sell it.
Do You Need the Money to Buy Something New?
Renting out your current home may not be right for you if you need the money from selling it to buy something else. Whether you’re downsizing, moving to something similar, or buying a bigger place, if you need the money then you’ll want to sell your home so you can pay for the new one or put a good down payment on it. That often makes the most sense, especially when you don’t want a big mortgage payment on the new house or you want to have some money for repairs or savings.
If you need a second opinion on whether to buy or sell, we are always here to offer current market information, advice, and even find you a buyer if necessary! Let us know how we can help you with your real estate decisions.
Thinking about Buying or Selling? Call or Text: (970) 417-9375
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