There comes a time when you start looking for something different from your actual home. It might be that your home suddenly becomes too small for your plans, or you’re only looking for an upgrade. Whichever the case might be, you’ll probably need to face the big question of whether you should opt to rent or sell your property.
Renting might seem like a better option because of the extra money you might be making every month. But what if no one rents your property? Or what if your property starts losing value in the market? How to know which option is the right one for you? Keep reading to find out.
Reason for Renting Your Home
If you’re able to find a tenant, then you can use the extra money to pay your monthly mortgage. Once you pay it off, you’ll have the money from the rent as an extra income that you can use to invest, pay off debts, or even save it.
Having an extra income is ideal for investment opportunities when you have financial stability. On the other hand, an additional income can come in handy for people who recently lost their job or are thinking about retiring.
Costs to Consider Before Renting
Renting a house is not all profits. There are multiple costs you should calculate before deciding if renting a home is your most profitable option. Take a look at some of them:
- Mortgage Payments: mortgage payments include both interest and principal fees. Although you might be able to pay both expenses with your monthly rent, there’s also a possibility of having to pay that cost yourself every month your house is not for rent.
- Taxes: Property taxes vary depending on the house’s area. But this cost is at least 2% of your home’s value every year.
- Insurance: landlord insurance is a must when it comes to renting a house. It can protect you if your tenant gets injured on your rental property. It can also cover any damages the tenant might incur.
- Repairs & Maintenance: with or without insurance, you still have to pay for maintenance or repairs. Homes frequently deteriorate over time, especially if your tenant doesn’t take good care of your rental property. When a tenant leaves, it’s common to find various areas that’ll need to be repaired.
Why Selling Your Home Could Be Your Best Choice
When you sell your house, you’re choosing to get your current home’s value in the market. Instead of waiting for monthly payments, you can acquire a large sum of money in a shorter period. You can also use this money to pay debts or make investments, but you would have a much larger capital when selling instead of renting.
A larger capital is ideal if you need the money to buy your new home or pay off your debts. It’s also a great option if you’re not interested in becoming a landlord and dealing with everything that comes with it. But there are also cons about selling your house with traditional real estate methods.
Cons of Selling Your Home The Traditional Way
Selling a home is not easy, and it’s not cheap if you work with a realtor. Even with the help of a real estate agent, you’ll need to wait at least three months to list your house. Once your property is finally listed, it still takes time to find a potential buyer.
The entire selling process can be tedious and stressful. Negotiations, price expectations, improving your home, inspections, open houses, all of these steps are time-consuming and expensive. Lucky for you, there are better options.
Sell Your House Easily with Home Buyers
When you decide to sell your house instead of renting it in Philadelphia, the first thing that comes to mind is, “how do I sell my house in Philadelphia, PA?” Here at We Just Buy Houses, we buy houses in Philadelphia without charging extra costs or going through long selling processes.
We buy houses in Philadelphia for cash, and you can have that cash in as little as seven days. Stop wondering, “how do I sell my house in Philadelphia, PA?.” Tell us about your property, and we can make you an offer within the next 24 hours. Contact us now and learn more about our fast buying process.