Should I Sell or Rent My House Now or Wait?
A new job, a desire to relocate, or the chance to purchase your dream home can all lead to an unpleasant decision: Should I sell or rent my house in today’s Texas housing Market? While most homeowners prefer to sell their property, many choose to keep their old home and rent it out. It all depends on your financial circumstances and the local housing market, renting it out may be a better option than selling it, or vice versa. If you are stuck in the ‘Should I sell or rent my house?’ dilemma, let’s look at what things to consider, including the prices.
Should I sell or rent my house Now 2022?
The decision should not be taken lightly, because both possibilities have advantages and disadvantages. For example, while selling may provide immediate cash, renting allows you to develop wealth as house values rise and receive income from tenants. Examine the scenarios below to determine which option is best for you.
When to sell your home
- If you require the money to purchase your new home: If your capacity to buy a new house is contingent on accessing the equity in your current property, selling it is the best option. By doing so, you can use the money from the sale of your house to pay for your new down payment.
- If you are not interested in being a landlord: It might take a lot of time and effort to manage a rental property. Are you skilled at home repairs? If not, do you have access to a list of reasonably priced contractors you could call on in an emergency? Think carefully about whether you want to take on the additional burden of being a landlord, which includes interviewing potential renters and handling concerns, among other obligations, or hire a third party to handle things instead.
- Other things to Consider: Even if you desire to be a landlord, your existing home may not be a suitable fit. You might be moving too far away, the house might not be in the best neighbourhood, or it might require too much work. You can always invest the money from the sale of your house in a nicer rental residence.
You can sell your home, if…
- It’s a sellers’ market
- You can't charge a high enough rent in relation to the home’s value because the house requires a lot of repairs
- Renters will not be drawn to the area
- You don’t have enough money on hand to pay for vacancy and maintenance
- The residence is not excellent
- You have a lot of equity
- You anticipate having a lot of maintenance problems because the house is old or not in good shape
When to rent your home
- If your relocation is only temporary: If your relocation is temporary and you intend to relocate back to your existing city in the future, you might want to consider renting out your house. Some stability and peace of mind can come from knowing you have a place to live when you get back, and it might be less expensive than selling your current house and buying a new one later.
- If you wish to earn money from rentals: It’s difficult to say no to extra money! However, if you decide to rent your present house and then purchase another with a mortgage, keep in mind that lenders will take rental income into account when deciding your financing. Occasionally, a lender will only permit you to count up to 75% of your rental income as a source of income. Furthermore, you will be carrying two mortgages at the same time, so make sure this is something you can afford.
- If you anticipate that housing values in your neighbourhood will rise: It’s hard to predict the housing market’s future with perfect accuracy. However, you may be able to make an educated guess. If you anticipate that the value of your existing residence will rise within a few years or less, you might want to think about renting it out now and selling it later to profit from appreciation.
You can rent your home, if…
- The demand for rentals is high
- You desire property management
- The home provides desirable facilities that renters want
- You are positive that you can turn a profit
- You owe more than what you can get from sales.
- The local housing market is unsteady
- You feel a personal connection to the house
Which Choice Is Ideal for You?
We have listed some of the most compelling reasons to sell or rent your house. Perhaps you checked off items from both lists. While every circumstance is slightly different, the main factors are profitability and whether or not you actually want to be a landlord. Even though your house might be an excellent rental property, it would probably be wiser to sell if you don't want to manage it. If you are looking to sell your house in Houston, Texas, get in touch with the Jay Thomas Real Estate Team with your offer and the team will handle the rest. They give full service for a 2% listing fee. However, if you want to start making money from rentals and your house is a suitable fit for the market, good luck with your new endeavor.