Clients 1st Property Management serves quality property management to all of Cherokee County and surrounding areas.
Deciding whether to sell or rent your property can be difficult. It really depends on your plans for the future and your current and projected financial situation.
There are many good reasons to sell and many equally good reasons to rent it out. Today, we’re sharing some of the things you ought to think about before you decide one way or another.
Reasons to Sell: Strong Market, Great Equity
The Woodstock sales market is fairly strong, and home values have been steadily rising. If you have enough equity in your property that you can make some money on a sale, you might want to consider selling. It’s not always possible to get the price that we want, so if the market is currently strong enough to deliver the price range that you’re hoping for, see what kind of interest you can get on the sale of your home.
If you have enough equity in your home and you need the cash for something else, selling is definitely a better option than renting. You won’t have access to instant cash with a rental property the way you will if you sell it. Maybe you’re hoping to invest in something else or you’re sending a child to college or planning to relocate to a sunny beach in the middle of a distant ocean. Under these circumstances, if you need the capital and your home can provide it, selling is a great idea.
Reasons to Rent: Cash Flow and Appreciation
If you don’t need the money that a home sale can provide right away, renting is a great option. You’ll be able to hold onto your asset for longer, and it will likely increase in value, giving you a larger return when you do decide to sell a year or five years or even 20 years from now. You’ll also have someone else paying down your mortgage. You get to reap the rewards of property ownership while your tenants pay down your loan balance. That’s a pretty great deal.
Speaking of tenants, they’ll be paying you rent. Depending on your mortgage and what you owe, it’s possible you can earn some cash on those monthly rent checks. At the very least, they’ll help cover your mortgage, taxes, and insurance. You stand to earn more money in the long term when you hold onto your real estate asset.
Additional Considerations – Renting vs. Selling
You’ll want to think about the tax implications of each decision. When you sell, you may face capital gains taxes. When you rent the property out, you can deduct things like maintenance and property management fees from your taxes.
Consider the costs of each option as well. When you sell, you’ll have to prepare the property for the market, which might include some renovations and cosmetic upgrades. There will be an agent’s fee. When you rent, you’ll need to be prepared to cover routine and emergency maintenance. You’ll have vacancy costs and professional property management fees.
Finally, what are your future plans? If you’re relocating for work and you plan to come back to the area in a few years, you might want to hold onto your home. In that case, renting it would be better.
We help homeowners make this decision all the time. We can talk more in depth about your specific situation and what the positives and negatives would be for each option. Contact us at Clients 1st Property Management for more information.