Should I Sell or Rent Out My House?

unnamedThis is the question that is put to me very frequently when I meet clients who are considering a move. There is a saying….. “Questions are the Answers” and it rings true in this scenario as my answer to these people is in the questions I put to them.

Firstly, there is no right or wrong answer. It is the clear understanding of the facts and possibilities that enables a person to make the best-educated decision possible at that moment in time.  So, here are some of the questions that I discuss with my clients who face this dilemma…

 

  • What is your “gut” telling you to do and why?
  • Why are you moving?
  • Where are you moving to?
  • How long do you plan on being there?
  • What is your next move after that?
  • Why did you buy the present house?
  • How long would you plan to keeping the house on lease?
  • Would the house present itself for sale in a better manner now or in the future with a tenant in it or in a vacant state?
  • What would the house presently fetch for sale?
  • What is the $$$ growth potential of the house over the lease period?
  • What would the house rent for today?
  • What are the holding costs for the house in terms of leasing?
  • Have you been a landlord before?
  • What is your expectations and understanding of the leasing process?
  • Have you taken maintenance and wear and tear into account while leasing?
  • Have you taken Capital Gains into account?
  • Are you leaning towards a particular option because it is easier or because it is the right one?
  • Would your property make a good investment property?

From a financial perspective, the key items to consider are…

  • Present Sale Value of the House with you in control of its presentation and no undue pressure
  • Estimated Sale Value of the House in the future with a tenant or with the property vacant
  • The rental return on the house
  • The estimated costs associated with the sale and rental process
  • The estimated costs in maintaining and holding the house during the lease process

Finally, there is the emotional perspective. And, with it, all logic and financial sense goes out of the window and the heart takes over the decision making process.

And, why not…you only live once!

 

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