At Encore Realty, we work with a lot of homeowners who are ready to move out of their homes. They might decide to buy new property, they might be relocating out of the Chula Vista area for work, or they might be juggling financial circumstances that make homeownership impossible at the present time. We also work with people who become landlords accidentally. They inherit a piece of property or decide to move out of their home to get married or live with someone else, and they don’t know if they should sell the home or rent it out.
As you’re deciding whether you should sell or rent your investment, there are a few things you need to consider. We also recommend you consult with professional Chula Vista property managers and real estate agents who understand both the sales and the rental markets.
Buying or Selling: Will you Return to the Area and/or Property?
The first thing you should consider while you’re making this decision is whether you need to hold onto the property. If you’re moving out of Chula Vista for a few years due to a military deployment or a job transfer but you expect to return to the area, you’ll need a place to live when you come back. Perhaps you’re thinking about the fact that you might need a retirement home one day or your children want a home to move into in five or 10 years. If the property can serve a housing purpose for you in the future, it’s best to hold onto it. Renting it out will allow you to pay down the mortgage with someone else’s money. If you have no plans to return to Chula Vista and you know you’ll never want to live in the property again, you have a stronger case for selling it.
Financial Considerations: Do You Need Cash Now?
Another thing to think about is your current financial health. If you need an influx of capital and you have enough equity in your property, selling it will give you the immediate cash you need. However, if you’re not looking to liquidate your asset for a particular reason, consider holding onto it. Depending on how much you owe on it and how much you can earn in rent, you have the potential to generate some cash flow on a monthly basis and to build some long term ROI.
What Does the Chula Vista Real Estate Market Look Like?
The market will drive many of the real estate decisions you need to make. If the sales market is favorable to sellers and buyers seem anxious to buy homes like yours for top dollar, it might be a good idea to sell so you don’t get stuck trying to sell a property in a crowded market later. However, if the sales market is slow and there’s plenty of competition for buyers, you might want to rent for a while. It’s also a good idea to rent your property instead of selling it if you don’t have a lot of equity built up, or if you’d never get the sales price that you’re hoping for.
If you’re wondering what to do with your property, contact us at Encore Realty. We are experts in Chula Vista property management and real estate, and we’d love to help you make an informed decision.