Discover the cost vs. value difference and decide whether to rent or sell.
Are you considering moving but don’t know what to do with your old property? Most people assume the best thing to do is to sell, but depending on your situation, it might make more sense to rent it out. However, before you decide anything, you need to understand the difference between the cost of your home and its value. Today, I’m breaking down what this difference means for you when deciding whether to sell your home or keep it as a rental.
Understanding cost vs. value. Right now, a lot of homeowners are concerned about rising expenses, like higher taxes and insurance costs. However, these higher costs don’t necessarily mean you can charge more for rent. Cost refers to what has been paid for the property, while value is determined by what someone is willing to pay for it. For example, a home purchased 20 years ago may have a much lower cost than its current value. Meanwhile, a home purchased recently may have a cost that is higher than its current value, which can impact rental profitability.
“Understanding cost vs. value can make or break your rental strategy.”
Cost numbers. For those deciding whether to rent or sell, it is important to evaluate personal financial goals and market conditions. Understanding the cost numbers associated with renting, including maintenance and vacancies, is essential. A clear long-term or short-term strategy can help guide the decision.
Key trend: Rentals are up. One key trend in today’s market is the increase in available rental properties. Many homeowners who secured low interest rates are choosing to rent out their properties rather than sell. However, this has led to a record-high number of single-family rentals, with over 3,700 currently available. The increase in supply is causing rental prices to decline in some areas. For example, Jacksonville has already seen a slight drop in rents.
With costs rising and rental values fluctuating, property owners must carefully consider whether renting or selling makes more sense for their situation. Evaluating financial factors and market trends will help in making the best decision for the future. If you have questions about renting or selling your home, don’t hesitate to reach out. You can call me at 904-650-3890 or send an email to Matty@PursuitRealEstate.com. I’m here to help you every step of the way.
