If you live in Niagara you know there is plenty of opportunity for income properties. The nearby Brock University and Niagara College bring in large groups of students moving to St. Catharines and the Niagara region who need accommodation. So, when you're ready to move, should you consider renting your home out instead of selling it?
It can be a difficult question to answer, and there's benefits and drawbacks for either option. We put together breakdown to help you decide what the best choice is for you.
Renting Out Your Home
One benefit to renting your home instead of selling your home in Niagara is that you are able to to build your equity. The benefit of renting out a home you've already owned and lived in is that you've already contributed to paying down the mortgage yourself, and you continue to build equity with every rent payment you receive.
Another factor that typically persuades people to rent their homes instead of selling is the potential to wait out for a hot market. If the market is down, some home owners will opt to wait to sell, hoping that when they decide to sell the home they'll be able to sell it for more money.
Selling Your Niagara Home
Becoming a landlord can be a risk. Ultimately, you are trusting your property - a major investment - with relative strangers. Many people are wary due to landlord horror stories they may have heard. The reality is you will run into issues as a landlord, and you need to be able to handle them, whether they are small or big issues. If you are uninterested in dealing with any issues, selling you home may be the best option.
The other factor that may make you reconsider renting out your home is that the real estate market can change quickly. While you may be able to hold onto a property long enough to see the value go up, you also may lose your window waiting for the perfect time and wind up losing money on your home.
If you're ready to list your home for sale, start working with a team of reputable real estate agents in Niagara. Connect with Team Davids today and get the process started. If you're still unsure whether selling is for you, download our free Home Sellers Guide to understand the process and get yourself prepared.