One of the most common scenarios when a homeowners retires or takes on a new job, in another city or state, is that they are putting a "FOR SALE" sign in front of the house. Especially if money is needed to buy the new place to stay. Although there are occasions where selling your house would be better than putting your house up for rent, the best thing to do, is to get the best possible deal that works for you.
According to the data provided by the Federal Housing Finance Agency, most homeowners who sold their homes, when home prices were 14% below the peak, lost a lot. While others who held onto their homes and waited for years before selling their property, saw respectable gains or they were at least able to recover from the downturn of the market place.
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Why would you sell your house?
One of the main advantages, when you sell your house is the liberation from paying multiple mortgages. Owning two properties at the same time can be expensive. When your house is sold, all the responsibilities and cost belongs to the new owner. This means that you are free from any repairs or any other issues. In short, if you want to make your life simple, putting your house up for sale is a good option. The disadvantage could be a gain from possible appreciation in the future. The National Association of Realtor’s has predicted that the current price of owned homes will increase 9 percent this year and 5.3 percent next year.
Why would you put your house up for rent?
Putting your house up for rent is the common alternative when you don't want to sell your home. This is one good way to make a profit because your tenants will take charge of paying your mortgage, provided they pay the rent regularly. If you know how to manage your finances this can become your retirement nest egg. On the other side of the coin, just be ready to accept the fact that your house will most likely not to be kept in the same condition as it was when you were living there and may receive a lesser market value when its time for you to sell. This is another potential disadvantage that you may have to deal with.
Now, it is up to you to decide which option is the best one for you, just remember that one size never fits all. When you need expert advise the GreatfForidaHomes Team would be happy to meet you and discuss your options.