If you’re planning to move from your current home, you may have thought about whether you should sell your house or rent it out after you’ve moved. Renting is becoming more and more popular, so you might be wondering if you’d be benefiting more to renting your old home compared to selling it.There are positives and negatives to both sides. The answer to this question depends on the person and their situation, but even then it can still be hard to figure out what the best option for you is.
Reasons you may want to sell:
You know the move will be permanent. If you already know you’re moving for good, you might feel ready to cut ties with your old house and area.
Not interested in being a landlord. Becoming a landlord can be time consuming and stressful, if this is something that’s seemed daunting to you or you already know you won’t have the time for it, it might be more beneficial for you to sell.
You have high equity. If you’d be making a larger profit by selling your house rather than what you might make over time by renting it, it would make more sense to sell your house.
Too far of a distance to maintain. If you’re moving from Hamilton, Texas, to Hamilton, Ontario, that distance might make you wary of holding onto your old property. Some may feel less comfortable being so far away should something go wrong.
You need money for a down payment. If you don’t have the recommended 20% of the purchase price of your new home saved up ahead of time, you might find that you want to use the money you could make selling to help cover the cost for your down payment.
Reasons for why you should rent:
Your move could be temporary. Knowing that you might want to move back after being gone for a little while, you might feel more comfortable renting out your old house to have to come back to when you’re ready.
You have renovations to make. While living in your old house, you might have been making plans to do some renovations and improvements that can help you house sell better in the future, you may prefer to wait it out and do them over time while renting it out.
Good cash flow. If the cost of renting your house is going to be enough to cover the expenses that come along with it and to make you some extra money each month, renting it could definitely be a good choice for you.
Home values are going to increase. If the cost of homes in your area doesn’t look great right now but is expected to grow more over the next few years, you may want to hold on to it for now and wait to see if you have a better chance of making more from it a little longer down the line.