Deciding what to do with your home when it’s time to move is a big decision. Should you sell it and move on, or rent it out for extra income? Each option has benefits and challenges. Here’s a simplified guide to help you decide.
When Selling Your Home Makes Sense
You Need the Cash for Your Next HomeSelling allows you to use the equity from your current home as a down payment on a new one.
You Don’t Want to Be a LandlordManaging tenants and maintenance can be time-consuming. If you’d rather avoid the hassle, selling may be best.
You’ll Make a Significant ProfitIf your home’s value has increased significantly, selling now could bring you a substantial return.
You Qualify for Tax BreaksIf you’ve lived in the house for two of the last five years, you could exclude up to $250,000 ($500,000 for couples) of profit from taxes.
When Renting Out Your Home is a Smart Move
You’re Moving Temporarily If you plan to return in the future, renting provides income while keeping your home available.
You Want Extra Income Rental income can help with mortgage payments or serve as additional cash flow.
Your Area Has High Rental Demand Homes in popular neighborhoods, school districts, or near attractions often rent quickly and at higher rates.
You Believe Property Values Will Rise Holding onto the house could mean selling it for more down the road while building equity in the meantime.
Costs to Consider
Selling Costs
Real estate agent commissions
Repairs, staging, and closing costs
Paying off your mortgage
Renting Costs
Mortgage, taxes, and insurance (landlord insurance is more expensive)
Maintenance and repairs
Property management fees (if you hire a manager)
Advertising and tenant screening
Making the Right Choice
Deciding between selling and renting depends on your financial situation, goals, and lifestyle. If you’re unsure, talk to a real estate professional to explore your options.
At The White Lion Group, we’re here to guide you through every step of the process. Whether you choose to sell or rent, we’ll help you make the best decision for your future. Contact us today to get started!
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