One of the questions we see people ask most often online when they are planning to move to a new home is, “Should I rent out my old house, or sell it?”

If you are in a financial position that allows you to choose either of those two options, it can be challenging to think through the pros and cons of each. While doing the math is important, there are additional considerations you also will need to think through before making your choice.

Consider renting out the house if …

• You are okay with the work and legal aspects involved in being a landlord. Even if you hire a property management company, there will be work involved, so just be aware of that.

• Renting out the home will significantly boost your income.

• You find you qualify for a capital gains tax exemption.

• The cost of rent in your area is high and/or there is a lot of demand for rental properties.

• You want to hang onto the property for any reason, be it to sell it later for a higher price, to move back into it later, or to eventually pass it down to your heirs.

Consider selling the house if …

• You cannot afford comfortably to buy the new home without the money from selling the old home (in some cases, it may just be that it lets you make a larger down payment, but at least that gets you out of mortgage insurance).

• You do not have any future plans for the house, and do not mind letting go of it.

• The costs of keeping the house outpace the gains you would earn from renting it out.

• You just are not up for the work and hassles that go with being a landlord.

Buy a Home in Indianapolis

Whatever you decide to do, you will put yourself in the best position financially if you buy your next home with a competitive mortgage. To find a competitive home loan, please give us a call at (317) 255-0062.