The decision to sell your home and relocate to a rental can be a stressful move, particularly if you do not know how the housing industry behaves. Any real estate management expert can tell you that you can only enjoy homeownership fruits after five years. The housing industry is unpredictable. There comes a time when house prices skyrocket, which is a perfect time to sell your house. If you bought your home in Pasadena, CA, your chances of having low equity or enduring the burden of footing a mortgage have been high within the past decade. Fortunately, a Glendale property management consultant can offer expert opinions on the housing market trends to ensure you get the best deal. Below is what you should know before selling your house.
The perks of selling your home and renting elsewhere
You may decide to retain your homeownership as you wait for the local housing market to be fair. But supposing you land a job opportunity elsewhere or going through life changes like a divorce. Perhaps your mortgage is piling up, yet you cannot afford to service it due to job loss. In that case, you have no choice but to sell your house at whatever price to have some peace of mind. Here are the main benefits of doing so:
- A great way to tap into your low equity
House prices vary depending on several factors. Property management agencies often gauge house value based on proximity to amenities, the chances of prospective buyers to receive monetary support and the future projections of house prices in that region. If, for example, the value of your house is six-hundred thousand dollars and you owe a mortgage of two-hundred thousand dollars, and then you decide to sell it, you will make up to four-hundred thousand in the capital. You can invest the profit in businesses guaranteeing a more significant income as you rent elsewhere. That is an excellent way of tapping into your equity.
- An opportunity to explore new locations
You have been in the same place for over ten or twenty years due to work-related reasons. Your retirement years are drawing near, and you think to yourself that change is as good as rest. Perhaps your house is in the countryside, and you have never tasted city life without worrying about homeownership struggles. In that case, you can sell or rent out your house to try life in urban places. In addition, being a tenant offers you the flexibility of moving houses if you get a new job elsewhere.
- Access to the best of amenities
As a retiree, living the best years of your life should be your top priority. Now is the right time to hit the gym to attain your fitness goals. You also want to be in a place whose proximity to the mall suits your aging needs. It also makes sense that your apartment privileges like a spacious garage, gym membership, a tenant-support front desk and high-tech security detail.
- Home away from stressful maintenance living
You have been conducting house repairs or struggling with yard maintenance fees, which is a stressful venture. For the first time in your life, you want someone else to take care of you. Renting an apartment or a townhouse after selling your house can be a great way of avoiding maintenance baggage.
- An opportunity to be free from hidden costs
Homeownership involves paying for property taxes, ownership association dues and maintenance fees every month. That means you will be footing costs for the rest of your homeownership life. But as a tenant, all you need is to pay your rent.
The downsides renting elsewhere after selling your home
While becoming a tenant after selling your house can be convincing, you should also consider:
Renting comes with various restrictions such as a ban on pets, no loud music or growing house plants. Landlords impose those bans to protect other tenants and prevent destruction to their property. If you are considering renting, check out your landlord’s policies to determine if you can endure.
2. No Privacy
Tenants have different lifestyles. Some may be too loud for your liking or generally rude. Be ready for prying neighbors knocking on your door in the wee hours of the night. Unless they are involved in criminal activities, there is no way you can compel them to move out. Once you sell your house, you may need to say goodbye to some aspects of your privacy.
3. Rent Might Increase
Different factors influence a homeowner’s decision to increase rent. For example, if the lease terms indicate the likelihood of rent rising in the next five years, you will have to bear the consequences. Local rent control laws may also determine the likelihood of increased rent.
4. Landlord Conflicts
Before selling your house, try to imagine how it will feel when someone else becomes your boss. You have been used to overseeing decisions affecting your property, a privilege you may lose once you become a tenant. Like a job interview, scrutinize your prospective landlord’s reviews. If former and current tenants give bad reviews, it would be best to rent elsewhere or stay in your home to avoid landlord conflicts.
Let Glendale Property Management take care of your property
You deserve a stress-free life. If selling your home to rent elsewhere gives you peace of mind, by all means, go for it. But if you realize that you have more to lose by selling your house, it would be best to wait until the housing market recovers. Weigh each option’s pros and cons before arriving at your final decision. Remember, real estate trends keep changing. The only way to keep up with the changes is by working with a knowledgeable property management consultant.
If you are looking for a trustworthy and efficient property management team, Glendale property management is here to offer expert opinion to help you make an informed decision. Over the years, the company has handled minor and significant challenges for property owners in Pasadena, CA. To know the value of your house or learn about your local housing market trends, contact the team today.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.