Let's start with 2. Where the real estate market is going. My experience with the real estate market is that in the short term (5-7 years) it will go up and down, with prices in the long term (10-15 years) higher than the last. The real estate market has been down for about 5 years now and it looks like it's turning the corner.
With that said, we go to 1. How much income, if any, would you make renting it out. If you make or even lose just a little monthly it might be to your benefit holding on to the home should the real estate market come back and you can sell your home at a much higher price later. If you have negative income and find that covering the difference puts you in hardship then I suggest selling the place.
Hope that helps.
That being said, there is no question that a rental property is an excellent investment in the current market. I suggest that you speak with a tax or financial advisor to become fully informed before you decide.
I have more than 20 years of property management experience and am an experienced broker. I would be happy to meet with you to help you make this decision. My contact number is (650)515-9711.
- Depending on your age you may avoid capital gains when selling your home now.
- Using your home as rental property now may lead you to move back to the property in the future so that you can sell it as your primary residence
- What other investment choices do you have? Bank interest rates are very low.
- Will you be able to hold the property if the economy goes through another down turn or be forced to sell it ?
An experienced real estate agent can help you look at these questions and others but would need to know more than what you would want to post on a public website.
Please feel free to call and chat.
The current real estate market has mostly recovered from the economic downturn but has also changed. San Mateo County real estate statistics at
Top 2 agent nationwide at Keller Williams Realty
Over 30 years experience
Over 1,000 homes sold in San Mateo and Santa Clara Counties
If you need to sell, this is a great time to sell, the inventory is low in San Mateo County and interest rates are at an all time low. Over 35% of Home sales in our area are also being made with all cash from buyers in every price range and every home condition. Rentals are in demand as those who lost thier homes are now renters and new families are forming bringing new renters to the market place. So, as a seller, or landlord, you are in the "driver's seat".
I would be happy to help you which ever way you chose to go.
Actually, when you buy this new home, you should make the exit strategy as well. The RE property is a bigger investment than stocks. When we buy, the exit strategy should be always ready.
Hope this helpful.
If the rent you can get isn't sufficient to cover your mortgage etc or you prefer having your money now, then by all means sell your home.
Bear in mind renting has it's own challenges. You'll need to decide whether you're going to manage the property yourself or use a professional property manager who will likely charge you somewhere in the range of 10% of the rent generated. If your home isn't located someplace where you can check on it regularly I'd definitely advise you to sell, long distance renting opens you up to to many risks. You want to be able to check on your property regularly to make sure everything is OK, and that it's being properly maintained.
Regardless of what you decide I wish you all the best.
Do you mean whether or not its a good time to sale based on market conditions ?
Homes are not staying on the market as long as they were last year around this time .
Your chances are very good in selling fast for a competitive price
Keeping your home as a rental can be a long term investment for retirement. As long as you have equity in your home and the rental payments cover your mortgage, taxes. insurance and expenses. It's true that dealing with tenants can be challenging sometimes and they may not take care of your property.
Right now the real estate market is very busy and you could probably sell your home quickly and for a good price. As a rental, if you choose to sell later, there would be capital gains taxes to pay.
If you have lived in the home 2 consecutive years out of the last 5 years you will avoid this. Plus, a single person has a $250000 tax exemption, a couple $500000 tax exemption for personal property.
There are many things to consider. I would be happy to discuss your options. I have been listing and selling homes on the Peninsula for 25 years.
Diane Mollison, Realtor
Once you establish the likely result of a sale and a rental, It's really all about what works for your current personal situation.