In a depressed real-estate market such as the one that we are in today, decisions about whether to sell or rent your home must be factored against the state of the economy. Your own financial situation and even emotional ties to the home can certainly affect your decision.
Selling your home of course, offers the ability to liquidate all equity in the home. Yet, some are enticed by the prospect of the property's potential to appreciate in the near future, and so choose to wait. With the way that the real estate market is right now it might be beneficial to sell right away. But they are saying that the price of homes will begin to rise soon.
Some homeowners who have raised kids in a home would like to now pass it on to them, find that the home isn't on their children's wish list. Whatever the case, the quandary is ever present, to sell or rent. Following are some points you may want to consider.
Bring in a real-estate appraiser to give you an estimate on your home's future value. An appraiser will give you an honest assessment to help you determine whether the home's future value will warrant the potential aggravations of renting it. This will give you a good estimate on how long you should wait to sell your property.
Do you really want to be a landlord? For one thing it's not so easy to find renters that are creditworthy in this economic climate; many are unemployed or receiving low incomes. Property maintenance is another issue to consider. As landlord you'll be responsible for the safety and maintenance of the property at all times. There also exists the possibility that your tenants may damage your home costing you more to repair than the security deposit covers.
The decision should be taxing - when you consider the tax implications that is. For example, currently those who own rental property receive 4 near-term income-tax deductions to help offset outlays for maintenance and property taxes. A rental property can also be depreciated for tax purposes. Remember, however, that you should employ the services of an accountant or other tax professional so that you can get the best advice on the tax implications specific to your situation.
You'll ultimately need to base your decision on wisdom and practicality, not emotion. Many homeowners forego selling the home because of the emotional attachment when selling is the financially sound choice. However, if you're wealthy, do what you wish; if not, make the sound business decision.
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