While a lot of people, homeowners especially, may be considering a move, one of the most daunting decisions to make is whether or not to rent out the property or sell it out. With many factors affecting the overall choice made, most estate managers however advise homeowners to choose the option of renting out their property instead of selling it.
- Renting out your home will fulfill the dream of owning an investment property
Deciding to rent out your home or put it in charge of property management agencies is a great wat to experiment the investor side of things. Since the home was purchased as an owner occupant, chances are that you will enjoy a more competitive loan which is lower than the payment, one which will secure you a slot as an investor who is out to buy an investment property. It is important to note that investor loans however require a higher down payment and usually have a higher interest rate attached alongside some terms and conditions. Renting out the home for a year of two will give you the advantage of testing out the property investment idea to see if it suits you.
- Generate Cash Flow
Investment properties allows you access to competitive loan terms and seeing as you will have paid down some of the mortgage balance, then choosing to rent out your home exposes you to monthly cash flow as a few extra hundreds of dollars monthly is expected to play a significant role in your finances.
- Qualify for tax deductions while renting out the home in your new location
For persons who can’t generate cash flow due to the margin between the payments, they also qualify for tax deductions which make for an excellent financial decision. Many landlords relocate for new jobs, relationships and more but do not buy homes in their destination location right away, with landlords getting more mobile, they can make more money and tax deductions since they are also renting a space in the new location.
- Renting out your home can serve as a security blanket
In the event of new jobs and new relationships which demand that a landlord moves from his current location to another, selling off the home while they try out the new location is not so much as a wise choice, instead, renting out the property allows them fall back into their former lives in the event the new one fails to pan out as hoped.
- Renting out the home is a great experience
Learning to manage an investment property is a great financial experience which can be gathered during the renting out phase. Taking into consideration that you will need to work with a property manager, an accountant and an insurance company, this move allows you the opportunity to further meet people and build your network while also aiming to make profit out of the experience.