Owning a home in Selma, Texas or anywhere in the U.S. means making a lot of choices. The most significant decision is what to do with the property when you leave. People move out of their houses for a myriad of reasons: a job relocation, an expanding family, or wanting to be closer to relatives as they age.
Whatever your reason, you now have an asset that you can either use or sell. Here are some things to consider when leaving a property that might help with this decision.
What is the Housing Market Like?
With the housing crisis a full decade behind us, the housing market has leveled out a bit, but the trend of buying homes is still flat and leaning toward decline.
This decline is because more people are interested in renting homes and not putting as much faith in the equity they get from home-ownership. This decrease is especially true in areas like Alamo Heights and throughout the state of Texas. So, whether you decide to sell your home or keep it and turn it into an investment property is more up to the value of the house, the area you live in, and if you feel like you want to take on the adventure of an investment property.
- If the market is up: If the market is up and you’re not coming back to this house, either because of a big move or needing more space, then selling the home is probably in your best interest. Turning a home into an investment property can be difficult, though with a property management team a lot of the stress is taken off of you.
- If the market is down: If the market is down, you could end up buying a new home and having the old property on your hands whether you like it or not. This is a tough situation if unprepared for it. Getting an analysis of what your house could rent for before moving can help you make this decision. You could find that owning a second property isn’t just cost-effective but earns you income. If you’re unsure and feeling more forced into the situation by a bad market in your area, hiring a property manager would be your next best investment as they can advertise the home and maintain it while you focus on setting up in your new place.
Are you moving temporarily?
If you’re moving from the area for good, it may be best to sell your home and use any equity as a down payment toward your next place, but if not, renting might not be a bad idea. Several career paths have people moving to and from large hubs for their business. One year you’re on the west coast and the next you’re in the Midwest and you bounce back and forth. Having to sell and buy a new property can cost a lot of money, time, and effort on your part, especially if the areas you’re moving to are trending downward.
Each time you sell a home, you have to deal with possible renovations, repairs, and updates to entice new owners as well as pay commission and closing costs, all while going through the process on the other side as a buyer.
If you’re confident you’ll be making a move back to the same area, renting your home may be your best option. Some pros of renting your home in this situation:
- Renovations would be at a minimum. Renters are willing to overlook older appliances and a small amount of wear-and-tear because of the temporary nature of their stay.
- Commission and closing costs can be costly and renting the home avoids these expenses.
- If you’re able to cover all of the costs of your mortgage and taxes, you’ll most likely be able to offset any taxes on that income based on deductions for repairs and maintenance.
- You’ll have an easier time moving back to the area instead of having to find a new house.
It’s a “Landlord’s Market”
As mentioned before, the housing market is going through a change. Despite more homes being on the market and prices of houses still low in many areas like Selma, Texas (though trending upward) more people are renting. Because of this trend, rental rates are going up, which you can use to your advantage. You would be more likely to cover your mortgage, taxes, and maintenance with the prices you’re able to charge.
Ensure Your Investment with a Property Manager
Managing property in Selma, Texas or any area while living elsewhere can be difficult, especially if the choice to manage property is foisted upon you because of a sudden need to move. You have a whole new set of responsibilities and have to keep the cash flowing so that you don’t end up in debt with your previous home. A professional property manager like Real Property Management can make sure your property stays maintained and occupied, as well as handle emergencies and tenant issues without your having to lift a finger. So, while you set up your new home, your property management team can handle your new investment in the future. Contact us today for a free analysis of your property.