Moving Somewhere New? Should You Sell Or Keep Your Current House?

Moving Somewhere New? Should You Sell Or Keep Your Current House?

When you’re moving somewhere new, it’s easy to assume you will sell your current property and find a new one. This is often the process for people when they move to a new home, whether near or far away.

Many people use the money from their current home to purchase a new one in a new location. But for some people, it makes more sense to keep the previous house and consider renting it out.

There are many reasons to want to keep your current home alongside your new one. Perhaps you want to be able to go back to visit family, or maybe you want to keep the house for tax purposes.

However, there are some possible downsides to owning multiple properties, especially if you’re going to rent one out.

So, if you’re about to move and trying to decide whether to sell or keep your home, this blog from Light Street Residential will go into some considerations to help you make the best choice.

5 Reasons To Keep Your Home To Rent

If you’re thinking about renting your current home after you move, it could be the right choice. However, it’s essential to go over the pros and the cons. First, let’s look at some good reasons to use a home you’re not living in as a rental.

1. You May Want To Move Back

If you’re moving to a new city or state for a job or other circumstance that’s only temporary, you might want to keep your old home just in case. In these cases, you may want assurance that there’s a home waiting for you if the job doesn’t extend the offer or if you’re only going to be with family for a bit. You could also keep the home for a time until you know the move is permanent.

2. You Need Or Want Rental Income

One potential benefit of renting out your property is that you will get income. If your home is mostly paid off or if you can rent it out for more than the mortgage payment, this could make financial sense. You could even use this rental income to put toward your new mortgage. However, keep in mind that renting does come with some problems that we will discuss later in this article.

3. You Want To Return To Visit

Even if your move is permanent, you might want to return to the area if you have a lot of family and friends there. So, having a home to come back to is a plus in this situation. You can rent the home out most of the time but keep it empty when you need it. This route enables you to use the house while still getting some money out of it.

4. You Want To Expand A Real Estate Portfolio

If you’re interested in getting into real estate as a job or investment, this could be the perfect opportunity to get started. With two homes, you can earn equity and have some tax breaks. If you like renting out one place, you may consider buying other properties and making rentals a more permanent part of your process.

5. You Think The Real Estate Market Will Go Up

Even if your overall plan is to sell your home, it might be worth renting it out for a while until the market is high. If you anticipate that the market will increase, it could be wise to wait some months or a year until you make a final sale.

5 Reason To Sell Your Home

However, while there are some benefits to renting out your home, buying is often better for some people. Here are some of the reasons you should try to sell your house quickly instead of making it a rental.

1. You Don’t Want To Be A Landlord

While rental income might be great, it doesn’t come without work. You’ll still have to manage the property and ensure it’s maintained. Issues like collecting rent, performing maintenance, and handling renters aren’t easy. You’ll either have to try to do this yourself or hire someone to do it. So, if the hassle doesn’t seem worth it to you, it’s better to just sell.

2. You Need Cash To Buy The New Home

While owning two homes might seem like a great idea, it is still relatively expensive. Not everyone has the ability to buy a new home without selling their old one. So, if you need the cash to go into the next home purchase, it’s much better to sell. You can even look into getting a cash offer for your home.

3. You’ll Get Capital Gains Exceptions

Capital gains taxes can be complicated and make buying and selling homes more complex. However, if you’ve been living in your current home for two out of the last five years, you can get exemptions for these taxes. In this case, it might be a good financial move to sell.

4. You Don’t Plan To Come Back

If you aren’t connected to the location, it’s probably not worth keeping your previous home. If you don’t really want to come back to visit, you may want to just sell your current home. You may feel you have more freedom and are better able to move into your new place and enjoy it.

5. You Can Sell The Home Quickly And Easily

Going through the home selling process deters many people from selling. But it doesn’t have to be complicated. Instead, you can get a cash offer from the experts at Light Street Residential. This way, you won’t have to deal with a long-drawn-out process and will instead get a fair offer. Reach out today to learn more or check out some of our frequently asked questions.

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