There are several reasons to explain why people move. It may be due to a divorce, a relocation, or a plan to size up or size down, depending on where you are with your family. Today, we’re talking about reasons to rent or sell your house. When you’re considering renting vs. selling, it’s always a good idea to talk to a real estate professional.
Sell vs. Rent: Reason to Sell
If you have equity in your property, you may want to sell and move on. You’ll be able to use that cash for other things, and you won’t have to worry about maintaining and keeping your property.
Sell or Rent: Reasons to Rent
If selling isn’t the best option, there are numerous good reasons to rent. If you can take the same property and hold onto it while purchasing a new home, your first property becomes an investment. You’ll have a tenant move in and pay your mortgage for you while you gain equity. Imagine having a property that you purchased for $200,000. You may have put 20 percent down, or $40,000. Over the course of time, your property might increase in value by 10 percent. That’s 10 percent on the entire purchase of $200,000. So, you’ve made $20,000. Compare that to your initial investment of $40,000, and you have a 50 percent return. There are not many other markets where you can make that kind of return.
Westminster Property Management MD: Taxes
Another great benefit to renting out your property is that there are several tax advantages that you can use. Talk to your accountant or your CPA to understand your best scenario. Rental property can decrease your taxable income.
A final reason for renting vs. selling your property is that you get to retain your asset. You might want to keep it for the long term and use it as a retirement fund. Or, perhaps you’ll want to move back into it eventually.
Knowing what to do with your property involves talking to professionals who know Westminster property management Maryland. Contact us at UTZ Property Management for all of your real estate and property management needs. Whether you decide to sell our rent out your property, give us a call.