Should You Rent Out Your Home Instead ... - The Real Estate Briefings
The rental market is booming across the country as foreclosures bite hard. There is an estimated increase of three million in the rental market today compared to three years ago, that?s a huge jump, and it?s going to rise even higher. The flip side of this is that there are three million less home owners in the market, and that is one of the major reasons why home values have fallen ? too many homes for sale, and not enough buyers. For those who need to sell, there is the option of placing their home in the rental market instead.
Unfortunately, it?s not always as easy as that. If you place your home on the rental market, where are you going to live? If you are forced to move home because of employment, then this is a viable option. You have to move, and if you have been transferred to a new town, you will have a move-by date, irrespective of whether your home sells or not. Rather than having the home empty, gaining a financial return makes sense. It may help to pay the mortgage, and perhaps cover some of your rental costs once you move.
Because you own a home already (even though it is mortgaged), if it has a rental return, you may find that financing your new home is just a little bit easier ? more so if you have decent equity in your current home. You will, however, need to check out the tax liabilities for income earned from rental properties, and what costs (such as taxes and mortgage interest) you can claim to offset that income.? What is interesting to note is that some of the richest people in the nation owe their wealth to property, having purchased homes and commercial real estate when prices where depressed and building their wealth through the rental incomes received. In effect, their tenants paid the mortgages for them.
If you have to sell and move on, then placing your home on the rental market may be a viable option worth examining. It won?t be right for everyone, however, with rental returns increasing, and demand sharply rising, if it is a sound option for you, it could help to build your personal wealth in the long term.
Related posts:
- Sell And Buy Or Rent And Buy?
- Washington DC Real Estate ? Sell Or Rent?
- Maryland Real Estate ? Cheaper To Buy Than Rent?
- Sell or Rent Your Real Estate?
- To Rent or to Buy?
Source: http://www.realestatebriefings.com/renting-leasing/rent-out-home-instead-selling/
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