Which is Better? Selling Your Flat or Renting It?
Confused about selling your house and moving on or just rent it out? As there are many apartment building for sale or rent trend up and coming, these queries and confusions will never seem to end. But notice that there are no right or wrong questions, you simply have to explore all the options to land on the right on. Here are a few factors to consider to help you sort out this confusion.
- Will this property bring you any kind of cash flow?
The primary factor to consider here is the math involved. Yeah, we understand that you hate doing math, but this is where you might need it a bit. Ask yourself that would the property help you generate some kind of cash flow? It means that when the property is rented out, you can eliminate all the related expenses like taxes, mortgage, utilities, insurance, management, repairs, vacancy, HOAs and much more, then check if the property if generating a monthly gain or loss. If it a loss, sell away your unit.
- Consider the return on investment.
Now consider what amount of profit will you make if you sell away the property today, assuming that you will lose around 10 percent to the agent commission, closing costs as well as other sales expenses. If you are making a little or zero profit, then wait for a while till the market condition improves. This holds as an important factor if the property offers positive cash flow in the meantime. If you are making profit by selling, then always take into consideration the return on investment.
- Think long term. Consider the future
Always consider the condition of your home in the next 5, 10, 20 years. Is it improving at all? Consider if the neighborhood will decline or rise in value. If the future seems dark, consider selling it right away to avoid all the hassles. Perceive the growth of your city, is it flowing towards you? Are there many businesses in your area? Are homes being fixed or just abandoned? This can be done by ascertaining the current trends in your market so as to make an informed decision on selling away or renting out your apartment unit.
Real estate will always allow you to keep the old and new, but when it comes to renting or selling away your unit, this can only be done by considering all the associated factors. So, take your time and consider all the aforementioned factors and come up with the best choice that works for you, your family as well as the financial future too.