Home Buying in 22015>Question Details

Mary, Home Buyer in Nova, OH

Need a bigger home

Asked by Mary, Nova, OH Sun Jan 27, 2008

I would like to buy a bigger home, but with the way the market is.. should I rent my current townhouse in order to move up to a bigger home for my family?

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That truly depends on your financial situation and your financial goals. If the rental market is strong in your area and you can afford to buy without selling, then it could be a wise decision. Keep in mind that your townhome may not rent right away and you may have some "down time" between tenants. If this will not affect your ability to make the payments on your larger home, go for it. Also keep in mind that being a landlord can cause a lot of headaches if you do not carefully screen your tenant applicants. After each lease period is up, you may have several thousand dollars of clean up, touch up to do before someone else leases the property. Be sure to get adequate security deposits and check on the unit throughout the lease. Don't wait a year to see how they are taking care of your home. I would also advise getting a home protection package to cover potential repairs such as the A/C, heat, plumbing, etc. (not due to wear and tear).
0 votes Thank Flag Link Wed Mar 4, 2009
If you have owned your townhouse for a number of years and you have a lot of equity in it then you may want to consider holding on to it to use for rental property. However you need to make sure that you can afford to pay the mortgage on two homes before you make that decision. Rental properties often take a few months to rent and during that time you have all of the expensises to consider.

If you worry is that the value of your townhouse is lower than it was a few years ago you need to consider that the value of the larger home that you want to buy is less as well. As a result it may be a "wash" when it comes to the money that you need to make the move to a larger home.

The best thing to do is contact a local realtor who can give you a more exact answer based on the value of your current home, what it might bring for rent and what your new home might cost. You may also want to talk to a mortgage professional to see if keeping both homes is financially feasible for you.

Good luck and if you need assistance feel free to contact me.
Web Reference: http://cindyjoneshomes.com
0 votes Thank Flag Link Mon Jan 28, 2008
Mary, How long have you owned and what are your long term goals from real estate? There is lot more that I can write here but has to be your situation specific!! In general, as recommended over and over; 5+ years is the key to possibly some appreciation. If you are willing to be Landlord for at least 6+ years, you may walk away with some money BUT again there is significant math involves when you are considering being landlord for that time period! If you feel it is too much hassel then you won't repent at least for next 6 years that you sold.:) OK now it is generic ; what is your location, again that may change things for you little bit here and there and what you own. So Please add few comments so myself and fellow Realtors can provide specific help! Regards, Monika
Web Reference: http://www.RealtyGeeks.com
0 votes Thank Flag Link Sun Jan 27, 2008
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