The progressive world stops for no one, and nor shall it, effective and timely decisions are what have led ordinary people to lead extraordinary lives. Current day economy has everyone struggling to make headway in order to be the most stable, even though we preach so often that money does not bring you happiness, it is foolish to ignore that it greatly influences your state of living and subsequently your outlook on life and your very own lifestyle. Recently we’ve seen how many people have gotten increasingly wealthy “relatively” overnight, this has been linked to property in the majority of cases. Property prices have surged far beyond the expectations of many economists, the need for houses is ever-growing yet the availability of good affordable living is rather scarce. In this situation, one must, of course, be grateful for the fact that they have a roof over their heads and should definitely look into what this “roof” can do for them.
House owners today are some of the luckiest people, and for people who are relocating, the opportunity arises where they must make the decision to either rent out their homes or consider selling them, each poses an upside as well as a drawback. One must carefully analyze and assess what decision would be in their best interest. Let’s say if I were to rent mine would it be enough for me to justify the opportunity cost of not selling it off? Maybe there’s another investment that I could’ve looked towards which would’ve given me a far greater profit than renting this house would. It’s the people who make these decisions carefully and study their choices that we see and read about being so wealthy today.
Property prices are through the roof everywhere in the world, some places have even seen prices go up tenfold within the span of one generation. However, would these prices go up any further? There has to be a point where they stop this exponential growth or rather slow down.
Pros of Selling:
The market is at its peak right now, check it through any property management company, land prices are through the roof and there’s so much potential to be discovered in the new investment opportunities we have at hands such as forex or bitcoin. Selling right now would not be far from ideal.
Seeing the current affordability in the market, it’s fair to say that the inequality of wealth has only increased and it does not seem like it will go down any time soon, so selling your house right now can be profitable as opposed to selling it at a time where market affordability is at it’s lowest and you have to compromise on a low-ball deal.
Since the 90s we’ve seen how grandparents and parents were able to able to afford quite decent-sized houses on a wage that seems preposterously low by today’s standards. We’re earning exponentially more than they did at that time, yet the very same houses they were able to afford on their minimum wage income are out of the reach of even the most financially stable employees. If this trend continues such a time isn’t far when there will be no buyers left in the market and you would have to settle for much less.
Selling a house could also be a better choice when put in comparison to how costly maintenance would be if you were to rent it out, you may not have the capital at hand to renovate or fix the issues relating to the house and it could very well put you in debt, in comparison you can sell it and free up cash having to not worry about maintenance at all.
Some houses may not provide you with the rent you seek, this may be because of the area or neighborhood it is located in, say if it were in a commercial zone. The rent would hardly be sufficient when compared to the price the house would be valued at. It is wise to sell when the property seems to give you a low return on investment than your other options which may be the bank, forex, or any such investing avenue.
To be lucky enough to own land is something to be truly grateful for since this land can very well become the source of your main income and you can escape from the clutches of your boring nine to five. Property management is a job where you can be your own boss and earn with very little expense. It sounds too good to be true but, in some cases, you can practically be “living for free” with the right property and the right deal on it.
Pros of Renting:
Looking at the surge in population in the last couple of years it’s easy to predict how we’re headed towards a time where there would be an excess of population and not enough housing available, this will cause an increase in rent because of the simple rules of supply and demand.
Being a landlord, you don’t have a constant ax hanging over your head if your job was to be in danger, you have another form of income to support yourself.
The rent you earn from one property can go into investment as well if you have great rental property management skills, maybe even in another property, it’s how many of the names you hear today have made their fortunes and it’s not too late to start with yours now.
Land if in the right area can eventually earn you back the money you would get from selling it off, and it has no limit to it, as long as the property remains under your name it keeps generating you money, unlike selling which will only be a one-time payout.
What's Better, Renting or Selling?
Renting or selling your home is not a decision to be made overnight, as there are many factors to consider. Financial stability is what everyone looks for in this day and age, creating different forms of income and rent is one of the greatest there is, with the least amount of work and the most amount of payout. Owning two properties and renting one of them out can have its own perks.
To fully understand the implications of each decision, speak with the property management at Oregon Bay Properties, LLC. We are available to assist you in making the best decision according your financial investment.