Congratulations on your retirement!
Perhaps you’re planning to retire to a warmer climate or a city that will put you closer to the grandkids. Whatever your future plans entail, you’ll need to decide what to do with the Puget Sound home that you no longer plan to occupy. While selling it seems like the natural solution, you might want to consider renting it out. Becoming a real estate investor could provide you with some extra money during your retirement.
Your decision will depend on a number of things, including your plans for the future and your current financial picture. We’d love to help you decide what to do with your Puget Sound real estate.
Reasons to Sell Your Home
If you’re hoping for a simple retirement with fewer possessions and more available cash, selling your property might be your best bet. You can walk away free and clear of the responsibilities that come with owning this home, and if the market is where you want it to be, you can probably earn some money when you sell.
You should also sell the home if you need some cash to make a down payment on your next home, or if you’re planning to spend every dollar traveling the world.
Reasons to Rent out Your Home
The Puget Sound rental market is strong, and there’s a great pool of tenants looking for well-maintained homes. Rents are comfortably high for landlords, and if your home is in good condition and located in a desirable area, you might want to consider holding onto it. If your mortgage is paid off, the rent you collect will be extra income. If it’s not paid off yet, your tenants can help you pay down the mortgage until you’re ready to sell it, at which point you’ll earn more on the sale because of your additional equity.
You should also considering renting the property out if you might return to the area one day, or if you’ve thought about passing the property onto children or grandchildren. You can hold onto the asset, which will continue to increase in value.
Renting out a home also comes with tax benefits. You can deduct the cost of maintaining the home and managing the home, and you can depreciate it to reduce your tax liability.
Professional Puget Sound Property Management
Perhaps you like the idea of holding onto your home and renting it out, but you’re not sure about being a landlord.
Good news – you don’t have to be a full-time landlord to benefit from owning rental property. Hire a professional property management company in Puget Sound to take care of everything from leasing the home to maintaining it and managing the relationship with your tenants. Your property manager will collect rent, enforce the lease, and protect the condition of your asset.
Ultimately, your decision will come down to what’s best for you and your finances. We’d be happy to explore what your property could earn in rent and what your best options may be. Contact us at People’s Real Estate, and we’ll help you plan for your post-retirement property goals.