When it comes to deciding whether to sell your apartment or rent it, it’s a given that most people tends to worry about the decision they are going to make. What will happen if you make the wrong financial move?
There are lot factors to consider before putting apartments for rent or sale, such as your current financial situation, current market price for rental homes in your location, future plans, etc.
Are you planning on returning back?
If you are moving away for few years be it a new job opportunity or for higher studies, chances are you might be returning back. If so the best decision is to rent your apartment for that time period and settle down back when you return.
Can you rent an apartment for enough money?
If you can, its best to keep your house then selling it because renting your house can be a smart way to fund your retirement plans. Every month you would get paid by your tenants. Plus you won’t likely to be paying a tax on this income.
Current renting price?
If you were to move away for a long period of time and the renting prices are likely to go down with time due to various reasons, it would be best to sell your apartment rather than renting it out. Because when the renting prices are going down you might not be able to make a profit if you have enough expenses to spend that money on. Most importantly since you know that you would not be retuning back anytime soon, it’s better to put your house on apartments for rent on the internet and other necessary media to make a quick sale.
Planning to buy a new apartment?
If so you might have to definitely sell your apartment so you could use that amount as a down payment for your new house.
But given that you don’t need all the equity in your house for your first payment, you might as well take a housing loan and buse that money to do your first down payment and put your apartment for rent where you can earn an income on monthly basis.
How good are you becoming a landlord?
When you rent out your apartment, you immediately become a landlord meaning you still have to maintain and repair the damages that happens. If you are unable to repair those damages and continue to maintain it while you are away, it is best to sell your house than trying to renting it out.
These above mentioned steps would help you out a make the right decision given your scenario.