Home Selling in 08648>Question Details

Katie, Home Seller in 08648

I bought my condo in Lawrence Square Village in the height of the market and am now looking to move; does it make more sense now to rent or sell it?

Asked by Katie, 08648 Sun Nov 28, 2010

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4
Joan Congilose’s answer
Hi Katie
That really depends on your financial situation. You have to consider what equity you have in the condo & if it makes sense to sell it at this time.Issues to consider: Do you need the proceeds from the condo to purchase something else & if you don't sell can you qulaify for another mortgage on another property if you rent it out I would suggest speaking to a mortgage person & have them review your financial situation before planning a move. If it turns out that you can't carry 2 mortgages or don't have enough equity to sell at this time then it might make sense to rent it out or wait a bit until you have some extra cash in reserve before you plan on moving
0 votes Thank Flag Link Sun Nov 28, 2010
Assuming that you do not have a lot of equity in your home, and that in this market you are not going to be able to sell your condo for more than you owe the bank.... you will need to crunch numbers and figure out, if you
actually a) are allowed to rent in your building b) for how much you potentially could rent it out c) would you cut even with the rental income to pay all your expenses loan and taxes and assessments?

Furthermore discuss with your lender or several lenders, if you actually rent (how much equity is needed in the current condo) and will you then still get a loan for the purchase of the next property, and do not forget to consider that your rental income is taxable income!

So without exact numbers it is hard for us on this venue to give you good advice!
A Realtor can help you with the information on how much rent you could rent it out for.... and the lenders
can help you whether this is from the lender's stand point workable for you...

Good luck to you!
Edith YourRealtor4Life and Chicago Connection
Working always in the very BEST interest of her clients
EdithSellsHomes@gmail.com
1 vote Thank Flag Link Mon Nov 29, 2010
Rent it if you do not need the money to take advantage of this depressed real estate market and low interest rates only if you are going to buy something bigger and better. That's because you are going to take a loss but what you buy will have come down further and be a bigger loss for that unlucky Seller! Make sure you and your advisors think whatever you are buying is a fabulous purchase and that you are buying well under the current market as prices are still falling in our area!
0 votes Thank Flag Link Mon Nov 29, 2010
Generally, most sellers would rather sell their unit to avoid any problems arising from dealing with the tenant. However, you should look at your financial situation together with a mortgage specialist to determine what your best options may be. Depending on how much you bought your unit and how much you could sell, you might want to see what the rental market looks like as well in your neighborhood. I will be more than happy to do a market analysis to help you in making an informed decision. You could email me at mang@weichert.com. Thanks and take care!
Web Reference: http://www.shubeeang.com
0 votes Thank Flag Link Sun Nov 28, 2010
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