Deciding whether to sell or rent your home depends on several factors, such as your financial situation and local market conditions. Selling offers a lump sum, while renting provides ongoing income and helps build equity.
When Selling is a Good Idea:
- Need cash for your next house: If buying a new home depends on the sale of your current one, selling makes sense.
- Potential for significant profit: High property values can offer a large return.
- Eligible for capital gains tax exemptions: You may exclude a portion of the profit from taxes.
Try out these calculators to estimate your sale proceeds Zillow Calculator and Open Door Calculator.
When Renting is a Good Idea:
- Temporary move: Renting allows you to keep the home if you plan to return.
- Extra income: Renting can provide additional cash flow.
- High rental demand: If your area is in demand, finding tenants will be easier.
- Anticipating home value growth: Renting now could lead to a more profitable sale later.
Try these calculators to estimate your rental income Zillow Rental Income Calculator or Turbo Tenant Rental Income Calculator. It’s one thing to enter the data, but knowing if the returns are good is another. Contact us and we’re happy to review it with you.
Costs to Consider:
- Renting: Mortgage, insurance, maintenance, vacancies, and property management fees.
- Selling: Agent commissions, home improvements, closing costs, and mortgage payoff.
Economic Considerations:
With a possible recession looming, think about job stability and savings before making a decision. Selling might be safer if the economy weakens.
Conclusion:
Choosing between selling or renting your home depends on your financial goals, market conditions, and willingness to manage tenants.
