Real estate is big business. Be it buying a property, selling a property, renting out a property, or moving into a rented place follows the normal course of decision making. There is no right or wrong decisions, only the reason for going through with the decision and the timing of the move makes the difference. There may be a time when you have move to a new property while still living in a place that you own. When you come to the crossroads, making a decision to either rent your property or sell your property is driven by a multitude of factors.
Should you sell or rent your property?
You may want to make a decision to sell or rent your property due to a change in circumstances. You may have an influx of funds giving you more leeway to move to a larger space with a better design or it is also equally possible that your current property may no longer be suitable for your current needs prompting a decision to buy or sell. While most often, the need to sell is a popular option, it may also be wise to rent the property rather than sell it. However this decision is dependent on financial factors, the current local market conditions, future plans, ability and need to take on a challenging and responsible role as a landlord, the real estate trend including taxation or income tax rules that apply capital gains or rented properties.
If your future plan is to move temporarily to a new place and relocate to your current dwelling in a few years’ time, you may even consider renting your home rather than selling it and paying hefty sales commissions and possible buy a place in the same area at a much higher rate. Converting your current space into a rental and moving back later does not attract capital gains tax. Infact, you can even show the annual depreciation value during tax filing due to home improvements and repairs carried out through the house. Even if you consider income accrued from renting your property, if it is not enough to help you pay the mortgage on your property, you have the option of selling it when the prices increase.
There is also the psychology of home buyers and those who are only looking to rent. People who are renting the space may not be overtly concerned about old fittings as long as they are in reasonable working conditions. This may work in your favour if your funds are locked and you may not have the budget to invest in heavy home improvements. When you own a property, by understanding and following the real-estate trends, you can also sell your property for a decent profit and upscale your lifestyle by buying a larger space that you were probably eyeing for a long time.
On the other hand, if you are not comfortable about renting your carefully done up space for rent, especially, if you have huge concerns about their level of maintenance, you may be better off selling your place.