Property Owners have always grappled with the question of, if they should sell or rent their property when it’s time to move and now COVID has entered into the equation and is playing a role in that decision.
So let’s look at both sides of the coin and how COVID should play into your decision:
Let’s first look at renting, in the past, renting has always been a great option for the homeowner who was looking to make extra money or to enter into the business of being a landlord.
However as you probably know, during COVID many landlords took a huge hit. A lot of tenants stopped paying rent and some landlords were not eligible for any relief.
Those landlords who were not eligible for relief still had to come up with a way to pay their mortgage and property taxes. Tenants not paying rent is not a new thing, it was happening before COVID and will happened after COVID.
The difference COVID made, was it prevented landlords from being able to evict those tenants and get new tenants, who could/would pay.
That being said, now that the country has seen tenants not paying their rent for over a year and the landlord still having to pay mortgage and taxes regardless of their own financial situation, it can not be unseen.
You can’t forget it or think that it will never happen again, this is something you must take into consideration.
So the question you have to ask yourself is: If there was another pandemic, could I afford to cover my own and my tenant’s mortgage and taxes and do you want to cover someone else’s living expenses?
Now that we’ve looked at renting out your property, let’s look at the other side of the coin, selling your property, when it’s time for you to move.
The best way to answer this question is to first look at what the market is doing. Currently interest rates are at all time lows, which is driving buyers to buy homes like crazy. Home prices have reached high’s that we have not seen in years, due to bidding wars amongst buyers.
Buyer’s are also paying over the appraised value of homes, just to be able to purchase the home they want.
Not to mention homes are selling fast, homes are coming on the market and in some cases by the next day, they already have multiple offers on them.
To sum this up, homes are selling for higher prices than they have in years and are selling in record time.
Therefore, you have to ask yourself do you want the security of a quick and profitable sale, or do you want to gamble your financial future with a tenant?
If you have any other Real Estate related questions, or when you are ready to sell feel free to reach out to me.
Seekia “Kia” Morrison, Real Estate Broker
West East Real Estate