Your kids have grown up and moved away. Now, you rattle around in the family home. Is it time to scale down and move? But should you sell or rent your home?
There's no doubt that we love our children and would do anything for them. However, when it comes time for them to move out of the house and on with their lives, we feel a sense of freedom.
The problem is, with all the kids out of the house, your home feels big and empty. Perhaps it's time to downsize or travel. The question, then, is what to do with your house.
Should you sell or rent your home?
Not sure what to do? We'll help you decide. Keep reading for the top pros and cons of each option.
Selling Your Home
There are a lot of benefits to selling your home. However, once you sell it, there's no going back. Here are the pros and cons if your empty nest house plans include selling your home.
If you sell your home, you'll likely make a good amount of money in equity, especially if the home is mostly or completely paid off. Even if you downsize to another house, you'll have money left over.
Selling your house also gives you the option to travel without being held back by property obligations. For that matter, you can also pick up and move to a more retirement-friendly town or area.
There are a few drawbacks of selling your home once the kids move out. For example, you'll be permanently saying goodbye to the home you raised your family in.
Additionally, selling your home only gives you a one-time pay-off. While it may be a large payoff, it won't serve as a recurring source of income.
Renting Your Home
If you're leaning toward renting in the sell vs. rent debate, it may be a good way to make money after retirement. Of course, as with any rental property management, there is a certain level of responsibility that comes with it.
When deciding to sell or rent your home, you need to think about the long-term consequences. If you choose to rent your home, you're essentially investing in a passive stream of income. This is especially beneficial if you're done paying the mortgage on the home.
Even if you still owe money on the home, however, renting it out allows other people to pay your mortgage for you while the equity in the home grows.
However, owning a rental property does come with a few downsides. For example, it keeps you somewhat tied down to that location. Although, you can hire property managers to keep an eye on the place if you choose to live or vacation elsewhere.
The biggest issue is that you'll be responsible for the home as long as you own it, regardless of if there are renters in it or not. This means paying property taxes, taking care of repairs and home maintenance, etc.
Ready to Sell or Rent Your Home?
What are your empty nester house plans? As we've seen lately, the economy can be fickle. We've watched the stock market drop drastically during recent events and people have lost thousands upon thousands of dollars.
If it's time to sell or rent your home, we highly recommend renting it. In times like these, it may be wise to hang onto your assets. People will always need a home to live in.
And if you don't know the first thing about property management, that's what we're here for. Contact us today to see how we can help!