Renting vs. Selling
Should you rent or sell your home in today’s market? Here are the pros and cons to consider.
Should you rent your home or sell it in today’s market?
There’s no quick answer to that question, but there are pros and cons to each option you should consider before making a decision.
Let’s say you bought your home five years ago with no money down for $125,000. Your monthly mortgage payment for that home is about $800, depending on property taxes, insurance premiums, and private mortgage insurance. Let’s also say the rent for that home would be about $1,100 per month.
On the surface, it looks like you could make $300 a month renting it out, but you also have to account for repairs, vacancies, and other property management services that come with renting. These can quickly cut that number down and cause some stress.
Now let’s say that same home has appreciated to $175,000 since you bought it, even though you only paid $125,000 for it. Would it be worth selling and putting that equity into a new home and being debt-free?
The choice is yours. We’d be happy to discuss this scenario in further detail with you, so if you have any questions, don’t hesitate to give us a call. We’re here to help.