Area
Homeowners Ask: Should I Stay or Should I Go?
New City Housing
Outlook Key to Rent or Sell Decision
Evaluating Your Rent Vs. Sell
Decision
The
real estate climate forecast for the coming year is partly sunny -- and warming
up! Yet, with no double-digit
appreciation in sight, some who plan on selling a home in New City face the very practical question: is the
winter of ’13 the right time to sell?
For
those who stand to make a gain from selling, the decision boils down to
convenience. Whether sale prices rise or fall, the cost of their next home will
probably move in the same direction.
But
what about those who suspect that the overhang from the financial crisis will
probably result in some degree of net loss? How do they decide whether it makes
more sense to sell and take the loss, or to rent -- and wait? Emotions aside,
the financial impacts can be examined. If you are considering selling a home in
New City and don’t stand to make a profit,
asking yourself some questions can help reach a decision:
·
Can
I afford to take a loss? If you might
need cash from your current property to purchase another, waiting is likely to
be the safest course.
·
If
I have to take a loss, will there be a tax advantage to doing so in 2013? If
you expect to sell a business or come into any other form of extra income
during this tax year, check with your CPA to see if this year’s the right time.
·
If
I choose to rent my home, am I prepared to be a landlord? Are you up-to-date on applicable federal
and local fair housing ordinances and tenants’ rights issues? If not, it’s practical to factor in the cost
of a property management agency (usually 7 – 15%).
·
Am
I prepared to wait it out? If you
decide to rent a New City home and wait for
the market to catch up to your profit goals, are you prepared to wait X
years before selling? On-again off-again selling decisions can result in high
tenant turnover -- which eats into your bottom line.
Selling
a home vs. renting it out is a decision only you can make -- why starting with
accurate information is so important. I will be happy to meet for a
confidential consultation on the value of your New
City home in today’s market. It is a very good place to start. Give me a call on 845 544 4026 & we’ll have a chat
No comments:
Post a Comment