Here are my thoughts on the debate of selling versus renting your home.
“Does it make more sense for me to sell my home or should I rent it out and turn it into an investment property?” I’ve been hearing this question a lot, so I wanted to take some time today to answer it in full.
Real estate is such a great investment, so the decision to sell or rent can be a tricky one when planning for future wealth. The first question to ask yourself is whether or not you have an overall plan to include real estate in your financial planning. Many investors own rental properties as part of their portfolio, so it’s worth sitting down with a broker and accountant who specialize in real estate to see whether it’s the right move for you.
Here in the Triangle, residential homes have been appreciating steadily at around 4% to 7% per year for the last four or five years. I study prices every day and have seen that the price per square foot continues to go up and appreciation will continue due to shrinking inventory.
If you do sell your home in today’s market, it’s likely to bring you top dollar. As the Triangle continues to be one of the top seller’s markets in the U.S., you can use your home’s increased equity to buy a larger, more expensive home. Higher-priced homes haven’t gained as much appreciation as entry-level ones. If you’re able to sell in a strong seller’s market and buy in a buyer’s market, that’s a win-win, and it’s possible to do with today’s conditions.
As rents increase over the years, your goal with an investment property will be to absorb any maintenance costs and pay off the mortgage as soon as possible. Renting the home allows you to begin using real estate as a financial tool for your family’s future.
If you have any questions about selling your home or turning it into an investment property, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.