From the title alone, you may have your own thoughts about renting out a home versus selling, simply because of the continual profit that can come from renting compared to a one-time deal from selling your home. Apart from the money factor, there are other factors that make selling or renting out a house more profitable for some than others.
More often than not, homeowners are moving from one place to another for several different reasons. Some homeowners want to downsize, and others need extra space for their expanding families. Whatever the reason, moving to another home while owning one can open up the opportunity for you to obtain the money you need to put a deposit on your new home. If you can finance your new home without selling your current home, renting out your home can be a viable option for you.
Buying a home while owning one will most likely require you to have a second mortgage. If your debt-to-income ratio qualifies you to obtain a second mortgage, renting may be the best financial option for you.
Renting can be a great way to make money, however, profits go to other experiences first before you get your share. Other expenses include the mortgage on that home, taxes, repair, and general maintenance. If you cannot afford these additional costs that may have to come out of your pocket every month, selling your home may be the best option for you.
In some instances, selling your home may give you the most return on your investment, especially if you have renovated your home. In the case that your return on investment does not come to be as expected, renting may be a better financial option for you.
Renting is not for everyone. Dealing with tenants can be challenging and time-consuming. For those still willing to rent out their homes, hiring a property manager may be in your best interest as they will handle tenants on your behalf.
It is hard to say. Depending on your financial situation and the housing market, the benefit of selling your house or renting it out can vary for each person. Since everyone has unique circumstances, it would be best to seek advice from an expert. Real estate agents can help you decipher if selling may be in your best interest, as they advise you on how much your home will sell for and help you manage your timeline between selling your current home and buying a new one.
The American Dream has tons of helpful experts and resources available to help you live your American Dream to the fullest, whether that is buying the home of your dreams or selling your home. For more information about how we can best assist you with your buying and selling aspirations, contact an agent.