If you’re trying to decide whether it’s a better idea to sell your Oshawa property or rent it out to tenants, the answer is going to depend on your current financial situation and your plans and goals for the future. Your best decision will depend on how much you pay in taxes and maintenance, and whether there’s a chance you might want to live in that house again. You’ll also want to decide whether you’re prepared to be a landlord.
The sales market is pretty hot right now. Demand is high and inventory is low, making it an ideal time to sell if you’re looking to make some quick money right now. However, if you’re an investor interested in long term gains and you don’t have an immediate need to liquidate your asset, you might find your best option is to hold the investment and rent it out.
There are benefits and drawbacks to each choice. We work with a lot of owners facing the same decision. Here’s what we advise them to consider before they make a decision.
Why Are You Leaving Your Oshawa Property?
First, think about whether you’re moving out of this property forever and you want to forget about it, or if you’re potentially coming back to Oshawa in a few years.
If you’re relocating for a new job or a school, you might want to hold onto the property in case you find yourself back in the area and needing a place to live. Maybe the home doesn’t work for you anymore in your current situation, but it might make a nice retirement home one day. If you might want to live in the house again or you have local family members who might need the home, consider holding it now and renting it out.
But, if you have an idea that you’ll never return to Oshawa, or you are leaving the home in order to buy a new one or move in with someone else, you might want to be rid of that property completely and finally. In that case, selling it might be your best option.
Consider your Equity and Cash Needs
Think about the money you’ll earn by selling the home, and what you’d do with it. You might need the cash from that sale to make a down payment on a new house. Or, you might be interested in investing in something else.
When you have plenty of equity in the home and you want to get your hands on some cash right away, you should sell the home so you can access the money. You’d be selling at a good point; the market will deliver for you at the current sales values.
If you don’t immediately need to access cash, consider renting the property out instead of selling.
When you hold the asset and rent it to tenants, you are looking at several benefits:
- You’ll earn some consistent rental income.
- You’ll earn long term gains and allow your investment to increase in value.
- Your renters will help you pay down your mortgage and contribute to other expenses associated with the investment.
- You can access a number of tax benefits with a rental property.
Get to Know the Oshawa Rental Market
The sales market is strong, but the rental market isn’t doing so badly, either. Rents are high and they’re continuing to climb. There’s a large pool of qualified tenants looking for well-maintained homes.
You may have to invest some money in getting the property ready for the rental market. But, you shouldn’t have to worry about an extended vacancy or unqualified renters. Work with an Oshawa property management company to ensure your property is well-protected and all the local, state, and federal laws are followed.
Whether you decide to sell or rent out your property, we’re here to help. Contact us at Investor’s Choice Property Management. We provide property management in Oshawa, Whitby, Courtice, Bowmanville, Pickering, Ajax, and communities in the regions of Durham and Clarington.