Should I Rent Out Or Sell My Old Home?

How to Make the Most of Your Old Property

Change is always good, and in many instances changes are required, similarly the same applies to our home. Many of us spend years in one house and live out our lives there, however many of us will move on to new homes. Sometimes the space isn’t enough; sometimes the neighborhood bothers us and sometimes it’s a change in workplace that creates the need to move. Whatever the reason, you may find yourself wondering ‘Should I sell my old home, or should I keep it and rent out?’

Renting it Out

The concept of owning investment property is becoming more and more popular every year, sometimes the quickest road is the road already taken. You already know if the area is any good, you know any potential issues with the property, and you’ve probably spent a lot of money on your home over the years – so why sell it when you can keep it and rent it out?

It’s a great stepping stone to get in to property investing and a great way to hold on to the memories you had.

When renting out your old home, you may receive an ongoing passive income every month which can be used toward paying of your home turned investment, general living, or to pay down your new home faster!

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Additionally, with the passage of time the value of your old home will hopefully increase, which means that in the future when you think of selling that house you may get a higher sale price compared to the current values. The old saying goes “buy in gloom, sell in boom”, so holding on till the right time in the property cycle could have some benefits, especially if the market is slow when you’re upgrading.

Before making any decisions, be sure to speak with your accountant to understand any potential capital gains tax that could be applicable and what impact the ongoing rent and expenses may have on your income tax. In some cases you may actually get tax back from the tax man simply form having a rental property.

All in all, for someone who wants to move into a new home without selling the older one, renting out is a great strategy to consider, it helps to have your investment intact and also provides you with a source of income which may be beneficial in future. Plus, you can always sell it later if you change your mind!

Investment in property can be a great initiative to help accumulate wealth for the future. Many first time investors look for different ways which may help them enjoy the key benefits of their own house with a continuous flow of income every month.

Before making any decisions we’d love to have a chat with you to understand your future plans and aspirations so that we can give you the right advice. Contact Emanate Finance today.

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