Moving and Renting Your House

Posted by: Steve Marr in General Business on Feb 05, 2018

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When people decide to move, most immediately put up a For Sale sign on their current home hoping to sell the property as quickly as possible. In some cases this may not be the best investment strategy.

If a family has funds for an additional down payment, they may want to consider keeping their current house and renting it. The advantage is that renters will pay off the mortgage.  Then, the property owner will end up with a property free and clear in the future. Over time, rentals generally increase their value, providing better cash flow for the homeowner. Additionally, if interest rates increase in the future; a low interest mortgage will have substantial value.

The strategy may be effective even if you move to different city.  The homeowner could hire a local property management company to find renters, collect the rent, and maintain the property.

This idea is not for everyone. However, it is something to consider before you automatically put your home up for sale. As King Solomon wrote “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” (Proverbs 13:11, NIV) Renting the property you vacate may help you gather money slowly that will make a huge difference in retirement.