Sell vs. Rent - That is the Question
This question came from the local Trulia questions this morning and it's a great topic. The question was: "We have a property that we need to sell. Is this the time for selling or should we rent it?"
Whether this is the time to sell really depends on what your personal circumstances are.
Things to consider are:
- Why are you selling?
- What are your future plans? Are you planning on moving from the area?
- Are you planning on purchasing another home and need to sell this one because of your debt ratios?
- Have you had a change in your financial situation and owning this home will put a drain on your personal finances?
- Or, do you forsee a change in your personal situation that could cause a hardship?
- Do you have equity in the home? Or, are you upside down?
- Do you have the intestinal fortitude to deal with a tenant?
- How long will it take to rent?
- How long will it take to sell?
- Can you afford to pay the mortgage while the property sits vacant?
- Can you afford to pay the mortgage if the tenant leaves and you are faced with repairs?
- Does the home need repairs before it can be rented?
- What kind of tenant are you likely to get in your area?
- Will the rent you get cover the mortgage and holding costs?
- Will you manage it yourself or hire someone?
- And, if you hire a property manager will the rent still cover both the management fee and the mortgage?
There are so many things to consider. These points are just the tip of the ice berg.
If you have a property to sell and are weighing the odds between selling or renting I would be happy to sit down with you and discuss your personal situation and go through these items and more to help you focus on your needs and objectively look at your past, present and future plans to determine if renting or selling would be the best option for you.
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