Posted 2 years ago
When you receive a Permanent Change of Station, one of the most important decisions you will make is how to handle the home you will leave behind. There are a lot of things to consider when deciding if you want to rent out your property or sell it. Remember that when you relocate, your home becomes nothing more than an investment and decisions should be made with your investment in mind.
Selling Your Property
- Selling may be a good idea if you have considerable equity in your property.
- You may qualify for tax-free capital gains on the sale.
- The money could help with a larger down payment on your new home leading to lower mortgage payments.
- The market in your area will dictate the value and rate of appreciation in the future. Your property may be worth more in a few years.
- You will have only your new property to maintain.
Renting Your Property
- Consider how desirable your property is to rent and how much rent you will be able to get.
- Renting your property could provide a steady income that can be used to pay your new mortgage.
- You will have to pay taxes on your rental income but many of your expenses can be written off.
- Your property may appreciate in value while renting and you make more of a profit if you sell in the future.
- You will need to be prepared to pay attorney fees for rental agreements and possible evictions.
- You will need to advertise and show the property as well as maintaining and making repairs.
- If you are relocating far away, you may need to consider a management company to handle your rental property.
- You will need proper insurance for the rental.
It really all comes down to your current financial situation and which would benefit you the most. Unless you are willing to pay a management company to handle things for you, renting a home can be like taking on a second job. If you aren't happy with your property value or the amount of equity you have accumulated, renting may be the answer for a few years.