While most people are only lucky enough to secure one home in their lifetime, there are circumstances in which they may end up with two or more. Whether you’ve inherited one from a family member, won the lottery and decided you wanted a vacation home, or simply want to keep the family home in the family, you’ve got a choice to make, assuming that no one will currently be occupying the second home. Should you sell the second home, or rent it out?
Reasons for Renting:
Increasing Home Value:
House prices are continuously on the rise with homes that were bought for 500,000 now going for upwards of 800,000 and will continue to do so. Renting out your home while waiting for the perfect opportunity to list may be the smart thing to do in this situation.
You Plan to Return: Perhaps the move into the new home is only temporary and you’re only living there because of a job opportunity or another related reason. Having the second home to return to whenever is most convenient, rather than taking the time to find a new home in the same area. In this case, renting it out is the clear choice.
Desirable Neighbourhood for Renting:
Some people will pay big bucks to live in certain areas, no matter the number of bedrooms and bathrooms that the house has. Looking at the market and seeing what rental prices go for in your area could give you an opportunity to make some money on the side, as more often than not, the rent that is paid will not only cover the mortgage, but will also put a little money in your pocket.
Reasons for Selling:
You’re Moving Out of the City/Country:
If you have no plans to return, selling is the better option. Managing and dealing with your old property and any issues that may arise will be nothing but a headache as it is hard to tackle these issues from afar.
Money for Moving: Most people rely on the money that they receive from their old home in order to be able to pay the down-payment for the new one. Unless you have upwards of $100,000 hidden away somewhere that can be used for this, selling your home is the clear choice.
The Market is Good: This one requires a little research, but if you’re finding that the homes in your area are selling fast and for high prices that are often above the asking price, it seems like the perfect plan to put your house on the market as well.
You Have a Busy Schedule: If your life is already hectic and you find yourself juggling multiple things without time for a break, you probably don’t want to add “landlord” to your list of responsibilities. Landlords are responsible for everything that happens to the house and if you’re not up for the task of being a property manager, just sell your home to avoid the hassle.
For more information on whether you should sell your home or rent it out, contact Walter Ekins who will be able to provide some valuable insight into your unique situation.