I decided to write on this topic as I was asked the other day what I thought about a seller selling their house to go rent something else. My answer was very simple. It all depends on your situation. That’s super helpful right? There are times that selling your home and becoming a renter again makes sense. Let’s take a look at the pros to doing this.
Free up that money
If the home you own has equity, selling might just be the best thing for you to do. You can take the equity that you’ll get out of your home and use it to invest in more real estate (best option), stocks (next best option), or whatever you want to do with it (option). Depending on where you want to rent next, you can use part of that money to put down your deposits and pay off a couple of months of rent up front.
No more repairs
Congrats! You are no longer the plumber, roofer, or a/c person. Those responsibilities are now passed on to your landlord. You will have minor keep up of the rental property but no where near the expense you had to pay when you owned your home. Plus most landlords have a 24 hour maintenance line so you don’t have to pay extra for someone to come out and fix something in the middle of the night.
Down grade to upgrade
Selling your house could make your monthly expenses lower than owning your own home. You won’t be responsible for taxes or homeowners insurance anymore. If you live in an HOA restricted community, you won’t have to worry about those fees either. Some landlords also take care of yard maintenance and if they’re really nice, cable and internet.
I’ve given all the reasons why selling your home and renting could be a great option for you, but let’s take a look at some of the negatives. First, you’re paying someone else’s mortgage. You get no equity built up when you become a renter. Which means if you rent somewhere for 10 years and decide to move again, you get nothing to show for it. Second, you don’t get much say in how you want the place you’re living in to look. Some landlords will let you paint neutral colors but most want the property to look exactly like it did the day you moved in. Third, you never know what your landlord may do. By this, I mean your landlord could end up selling the property tomorrow and you get a new landlord which could be great or someone you’re not very fond of.
If you decide you want to sell your house in Jacksonville and become a renter, call us first and let us discuss your options. We will be more than happy to give you all of your options and help you make the best decision for you!