If You Have A Great Rate….Don’t Sell Your Home

Owning a home is an important financial milestone for many individuals.  However, circumstances may change over time, and the home that once suited your lifestyle may no longer fit your needs.  Perhaps your family has grown, or you’ve taken a job in a different location.  Regardless of the reason, if you own your home and are considering selling it, you may want to reconsider.

That’s a strange statement coming from an agent who makes money by selling homes right? But my job is not to sell your home, it’s to advise my clients and here’s why you may not want to sell your home: If you own your home with a 2-4% interest rate, it’s likely that you have a low mortgage payment.  This is a significant advantage that you may not have if you were to sell and purchase a new home. By selling your home, you’ll lose your low interest rate and will likely end up with a higher mortgage payment if you purchase a new home.

Additionally, if you’ve built up equity in your current home, you can leverage it to purchase a new home that fits your lifestyle.  Rather than selling your home and using the proceeds to purchase a new home, you can rent out your current home and use the rental income to pay for a portion of the mortgage on your new home.  This strategy allows you to keep your low-interest rate mortgage and generate rental income that can help offset the cost of your new home.

Now, you may be thinking, “I don’t want to be a landlord.”  And that’s okay because you don’t have to be.  Hiring a property management firm can take care of everything for you, from finding tenants to managing repairs and maintenance.  This way, you can enjoy the benefits of rental income without the hassle of managing a property.

It’s important to note that this strategy may not work for everyone.  There are various factors to consider, such as the current real estate market, the condition of your current home, and your financial goals.  That’s where a local real estate advisor with Century 21 can help.  They can evaluate your situation and provide guidance on the best next steps for you.

In summary, if you own your home with a low interest rate, it’s likely financially beneficial to keep it and leverage the equity to purchase a new home that fits your lifestyle.  By renting out your current home and hiring a property management firm, you can generate rental income without the hassle of being a landlord.  If you need help evaluating your situation and determining the best next steps, reach out to a local real estate advisor with Century 21.  They can provide expert guidance and help you make an informed decision.