As a homeowner, you will at some point in your life want to sell your property and move into another home. Maybe you’ll get a job transfer that takes you out of state for several years, or perhaps your family life will change and you’ll need a larger home or a smaller one so you can downsize. Most people assume that they need to sell their house when these circumstances arise, but renting it out is another good option. Today, we’re sharing some benefits to renting out your property instead of selling it.
Rental Properties Produce Income
Renting out your home instead of selling it can give you a monthly income. You might have a mortgage on the house that you need to continue paying every month, but if it’s a good market, your home is in a desirable location, and it’s in good condition, you can have a positive cash flow.
Rental Properties Build Future Appreciation
The sales and rental market in the greater Phoenix area are strong. Things have changed for the better over the last few years, and the property values are climbing. By holding onto your property, it will be worth more when you sell later.
Rental Properties Come with Tax Benefits
You should talk to your tax expert or attorney first, but in general, rental properties will have a number of tax benefits that help you reduce your tax exposure every year.
Rental Properties Make Excellent Retirement Vehicles
If you’re currently retired, the property can provide you with extra income. For those of you who plan to retire in the near future, you can think about this as a way to help fund your retirement. It’s always a good idea to diversify your investments. Real estate should be part of your entire investment and retirement portfolio. There’s also the possibility that you might have to reoccupy the home, either in your retirement or when you move back to the area. That’s another good reason to hold onto it.
Renting out your property provides you with a number of excellent opportunities. If you have any questions, please contact us at World Class Properties.