How Keeping Your Home and Renting it Out Could Be Your Best Financial Move Yet
Imagine you’re a homeowner facing the daunting task of moving. The financial and emotional “pill” of moving is a lot to swallow, especially with interest rates doubling what we saw just over a year ago. You may feel like you’re handcuffed to your home because of your low-interest rate. But what if there was another option?
Picture this – you decide to keep your home and rent it out instead of selling it. At first, the idea of being a landlord might seem intimidating, but hear us out. By renting out your home, you’ll have a source of passive income every month from the rent payments. This can be a great way to supplement your income and build long-term wealth.
You might be thinking, “But what about my low mortgage rate? I don’t want to lose that!” Don’t worry – by keeping your home and renting it out, you can use your equity and low mortgage rate to your advantage. You could potentially make more money from the rental income than you would from selling your home, and use that extra cash flow to help offset the higher interest rate. You could pay down your mortgage principal or make your monthly payments more manageable.
Plus, if you’re moving for reasons like needing more space or a different location, renting out your home can give you the time and flexibility you need to find the perfect new home without feeling rushed or pressured to sell your current one.
Of course, being a landlord isn’t without its downsides. You’ll need to handle tasks like finding tenants, collecting rent payments, and taking care of maintenance and repairs. But don’t let that discourage you! There are plenty of property management companies and real estate agents who specialize in rental properties and can help take the stress and responsibility off your plate.
In the end, the decision to keep your home and rent it out or sell it will depend on your unique financial situation and personal goals. It’s always a good idea to speak with a trusted real estate agent or financial advisor who can help you make an informed decision based on your specific needs and circumstances. But don’t be afraid to consider all your options – you never know what kind of financial opportunities might be waiting for you just around the corner!