If you are planning on moving to a new house and are not sure what to do with the house you own and live in now, your two options are to sell it or rent it out. Both options can be great choices; however, there are several factors you may want to consider if you are not sure which option to choose. Here are three important factors you should thoroughly analyze and consider as you make this big decision.
The amount of equity you have in your home
One of the main reasons people wonder whether they should sell or rent is due to the fact that they may not be able to make any money by selling. In fact, there are times when homeowners worry that they might not even be able to break even if they sell. If this is the case, the homeowner might need to bring a check to closing instead of receiving a check.
As you make this decision, you should see how much equity you have in your home. You can determine this by finding out the fair market value of your house and subtracting the amount you owe on the house.
Selling a house is easier if it is not vacant
Another factor to consider is that it can be harder to sell a house that is vacant compared to one that is lived in. If you are leaning more towards selling your house, you may want to get it listed soon so you can try to sell it while you are living in it, rather than waiting to sell it until you move out.
Keep in mind too that if no one buys your house and you end up moving out, you could always change your mind about selling it. At that point, you could instead choose to rent it out.
Managing two households can be costly, but rental property can be profitable
As you determine which option to choose, it's important to know these two things:
- Managing two households is costly – If you decide to keep the house and rent it out, there may be times when you do not have a tenant there. If this happens, you will have to pay two sets of bills. You should consider your budget to see if this would be feasible.
- Rental property can be a great investment – If you can pull it off and manage both households, eventually your original house will be paid off. After that, the rental income you earn would be profit for you.
One of the best options you may have is trying to sell your house as you start searching for a house to buy. If you can sell it, then you will not have to worry about what to do. If you can't, you could always rent it out. No matter which option you choose, you should hire a real estate agent. The agent you hire can help you sell or rent your house and help you find a house to buy or look at apartment complexes, like Meadowdale Apartments, for you.