Osborne Realty

Keep the Old House and the New?

by Judy Osborne 03/24/2019

That starter house is too small and it’s time to move up to something that better fits your growing needs. The original plan—sell the current house and buy a new one—might not be the only option. What if you could keep both?

In many areas, housing is in lower supply. Some buyers are choosing to keep their original home, making it a rental, while buying a new one to live in. Is this a good plan for you? Here are some reasons why it might be (and some why it might not):

You don’t need the equity

Your current home has equity—the increase in value, plus the amount you’ve paid down on the existing mortgage—that you will receive if you sell it.The typical plan is to use that equity to make the down payment on the new home.If you don’t need that equity for your down payment, however, you could keep this home and rent it.

You don’t have equity

If you purchased your home during the last housing boom, or you got a second mortgage or refinanced and took cash out, your home may not have much equity. The cost to sell your home (real estate agent commissions, closing costs, etc.) might just eat up the equity you do have. In this case, keeping the home and renting it out might work out better for you than selling it.

You want to become a landlord

Turning a home into a rental is a business decision. Because it has its own costs, the decision to become a landlord should not be a casual decision. But, if part of your long-term plan includes real estate investment, start with the house you already own. The uptick in the economy and resultant business expansion in many areas means rental housing is at a premium, making this a prime time to own a rental.

The downside of being a landlord

Because it is a business decision, becoming a landlord is not for everyone.This is especially true if your family lived in the home and you have emotional attachments and memories built around it. The possibility of one or more months of no rental income must be factored as well, with a cushion to handle that contingency so that your mortgage is paid and the home you’re living in isn’t jeopardized. Additionally, setting aside funds for repairs from potential renter damage and general maintenance gives peace of mind to a new landlord.

If it makes business sense, but the idea of dealing directly with renters seems daunting or you don’t have the necessary emotional detachment,consider hiring a professional property manager. These real estate professionals know how to set appropriate rental amounts, execute lease agreements, handle repair and other costs, and screen potential renters.

Let a real estate professional know your plans. They can connect you with a property management professional to make becoming a landlord a smooth transition.

About the Author
Author

Judy Osborne

Thank you, for taking your time to visit our website for buying or selling your home investment in the Pineville, Ballantyne,  Fort Mill and Charlotte and surrounding area. Osborne Realty will work with experienced home buyers, and experienced sellers or first time home buyers, and first time home sellers, builders, and investors.  It may be an excellent time for you to buy or sell a home.  Home ownership is the most significant investment most people make and the only investment that you or someone else lives in! Whether you are planning to stay here for a few years or the rest of your life, you will enjoy the stay. The good news is that most Charlotteans are not from here either. Like you, people hail from all over for reasons ranging from work to weather. Although some will tell you, the southern hospitality, BBQ, and sweet tea sealed the deal. You'll fall in love with Pineville, Charlotte, Ballantyne and Fort Mill or any area you like!


"All I can strive to be is the absolute best possible version of myself." real estate business is all about listening to you, our client, to find out what you expect either selling or buying a home.   Osborne Realty is dedicated to learning about your hopes and dreams concerning the most significant investment most people make and how best to help you achieve your realistic expectations. When you are buying or selling property in today's real estate market, it's essential to have confidence in your real estate professional. Our commitment as your local REALTOR® is to provide you with the specialized real estate service you deserve. Osborne Realty knows we have accomplished your goals when you refer a  family member or friend to sell or buy with us.  We appreciate your continued relationship and look forward to becoming your Realtor for life that tells others about how we help people every day with the selling and buying of homes.

When you are an informed seller or buyer, you'll make the best decisions for the most important sale or purchase in your lifetime. That's why our goal is to keep you informed on trends in the marketplace using the latest statistics in your local area. With property values continuing to rise, real estate is a sound investment for now and for the future. If you are considering selling or buying a home or would just like to have additional information about real estate in your area, please don't hesitate to call or e-mail us. Thank you for visiting PinevilleHomes.com - please consider it as your online source for local real estate information, and often return for the latest property listing updates.

Pineville, Fort Mill, and Ballantyne or any area you like Realtor!


Judy Osborne

Osborne Realty (704) 763-4486

E-Mail: [email protected]