If you are relocating for work, pleasure or personal reasons, you might be wondering what to do with your house. You might wonder if selling or renting is the best option for you. The answer is not a one-size-fits-all sort of thing. Instead, there are many factors that contribute to if you should sell or rent your home. Here are some things to consider.
1. Equity
If you have a lot of equity in the house it might be better to sell. Those who have less equity are usually in a better position to rent. This is because when you have less equity, your payments tend to be a little lower. In this case you can charge a little more for the rental payment and get a little extra cash flow.
If you have good equity in the house, you can get a good amount out of it, even if you have to sell at a lower price than you paid for it. Then you don't have to deal with becoming a landlord, the potential problems that renters might cause, and looking for renters.
2. Real Estate Market
Another important factor to consider is what the houses for your area are selling for. If you live in a place where houses are going for great prices, and you can get what you paid for out of your house, or more, you might be in a better position to sell. You can learn more about your current market for your area by talking to real estate agents, asking around to see what people bought their houses for, and checking with websites such as the MLS.
3. Additional Costs For Investment Properties
When you have investment properties, such as rental properties, they are taxed differently: you still have to pay for insurance and are paying interest on the mortgage. In addition, it is important to be realistic about hiring a property management company. Some people choose to hire property management because it simplifies things greatly. This can make your life easier, but it can also cost you more money each month.
This is why it is important to make sure that your rental amount that you agreed to will cover the cost of taxes, insurance, interest, and the fees for the property management. If you can still break even, or make a little more each month, then renting may be worth it.
By considering these important topics, you can decide if renting or selling is the right decision for you.
Share29 October 2014
Do you absolutely adore your home, but are planning an upcoming move due to a career change? If you’re moving in the near future, you might desperately desire to sell your current home as soon as possible. To help you accomplish this important task, consider hiring an experienced, real estate agent in your community. This individual can help you select the perfect selling price for your house. Your real estate agent can also provide valuable information about staging your home to perfection. For instance, to make your home more inviting, your real estate agent might suggest you purchase new bedding, window treatments, and artwork. On this blog, I hope you will discover how a real estate agent can help you sell your home fast. Enjoy!