Many people have jobs and are asked to move to another location in their company. It is at this point, the owner has to come to a decision. Should I sell my house or should I rent it out? How am I going to handle emergency repairs when the tenants call? What happens if I rent and the tenants stop paying the rent? Will this take up too much of my time? These are normal questions that every homeowner should have. It is a tough decision as it was probably a huge accomplishment to purchase your property and have spent a significant investment in it after purchasing. In light of this, here are some factors that the homeowner should consider in determining whether they should sell their New York City property or keep it:
Plans on returning to NYC- If your move out of state or the country is temporary then it is probably a good idea to keep your property. A short term rental can be procured and you would be in the position of moving back into your place. You should look at the cost of selling your property and the time to find something of the same quality and nature of what you gave up. One would imagine that it took you time to find a property that you were interested in. It would be the same way this time around. Also the cost of finding replacement housing as you find a new permanent property will be costly both in terms of the rental expense but also the inability to build equity in the property you are renting.
The current real estate market- While the real estate market has bounced back in the several years, it still hasn't reached peak conditions. Also, if you have not built any equity in your house the chances are you will lose money in the transaction. While some boroughs has seen an appreciation in the value of their homes, it is not universal. Waiting a few more years to sell would be a prudent choice.
Investment return potential of your NYC rental- New York City rental properties have huge potential when it comes to give you investment returns. Rental prices have skyrocketed in areas located in Brooklyn and Queens. In comparison to selling you will be able to see returns in your investment almost immediately if you rent it. You will also get the benefit of appreciation by holding the property for a few more years. If you decide to sell there are drawbacks such as the tax ramifications of selling and having to pay transfer taxes immediately at the sale.
Hiring a professional to handle your property while away-Most owners are concerned about what will happen to their property if they are away. Hiring a professional NYC property management company can alleviate your concerns that your property will fall into disrepair. A full service property management company will be able to handle emergency requests from tenants, maintain correspondence with you and the tenants, collect rent and handle all other day to day operations for your property.
If you are unsure of whether you want to sell or rent your property Blue Harbour Property Management will be happy to speak to you about it. Because we are leaders in the industry, we will be able to share with you where the market is presently and we can determine what is the best avenue for you to take. Keeping your New York City property or selling is a serious choice and needs to be reviewed on a case-by-case basis.