If you're a homeowner considering whether to rent out or sell your property, you'll want to weigh the pros and cons of both options. Selling your property can provide you with a one-time lump sum payment, but renting it out can generate ongoing income. There are also some other factors to consider when making this decision. We're here to help you explore the pros and cons of renting vs. selling your property. We hope this information will help you make the best decision for your unique situation.
Evaluate your current situation
Whether to rent or sell the property is a very personal decision. Everyone has different long-term and short-term financial goals, as well as different risk tolerance levels. For example, you may not love the concept of debt and prefer to sell the property to pay off student loans or other payments. On the flip side, you may see interest rates at a low and opt to take on debt while earning more from the cash in a rental property. Or, you may be lucky enough to have no debt and think about owning a rental versus putting the money into another investment, such as the stock market.
So what are the pros of selling the property? First, you get one-time lump sum payment. This can be helpful if you're looking to downsize or move to a new area and need the extra cash. The amount of money you make from the sale of your home will depend on factors like the housing market and the condition of your home.
Second, when you sell your home, you won't have any ongoing expenses associated with the property. This means you won't have to worry about things like maintenance, repairs (solved through Hemlane), or paying property taxes. Once the sale is complete, you'll be free from any financial obligations to the property.
But, selling the home means that you never own this asset. If you have any emotional attachment and may move back For example, if you sell your primary residence, you won't be able to live there anymore. And, if you have family or friends who want to stay with you, they'll need to find another place to stay.