One of the most common questions I get today is “Should I sell or rent my home?”
The answer of course depends on your individual situation. Both selling your home and renting it out have its own advantages, as well as disadvantages.
Each real estate market is different, so avoid national news and newspapers, sometimes even local news can give you wrong information. There are a few ways to go to get the necessary information you’ll require to make an educated decision.
First you’ll want to speak to a local, professional selling agent as well as a property manager. You may get 2 or 3 in to give you a spectrum of ideas on price, and other factors involved. Of course, you could also appoint a professional valuer to give you a valuation on your home in the current market, but sometimes, they don’t have information that’s as up to date as real estate agents.
Often vendors who can’t sell for the price they’re after will settle on renting till the market heats up, only to find that they have to pay more also when they purchase later.
Here are four questions to ask yourself when tossing up whether to sell or rent your home out:
1. Can I financially afford to sell my home? If you owe more that your home is worth, and would have to bring money to the table when selling, renting could be your best option.
2. If I can financially afford to sell my home, should I wait for the market to improve in an attempt to make up lost equity? This is where a crystal ball would come in handy. You need to figure out how long you’d be willing to be responsible for that property. Think of the unexpected. How long will you have to wait for an improvement in the market? Are you willing to wait that long? Will it be worth the wait?
3. Do I plan to come to come back to the old location again? If yes, it may be a wise move to rent your home out with the view to moving back one day. If the home won’t suit your family’s needs in the future, then selling might be the way to go.
4. Am I ready to be a landlord? Being a landlord, especially if you’re moving a distance away, can be fraught with difficulty. Though if you have a great support team in place, things will be much easier.