Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hopefully this is the right board. My company is going to relocate me and my wife to Europe for a few years. We only bought our house 2 years ago and I don't think that given the market i'd get what I paid for it and certainly not what's been put in to it. Should I rent it out (even though I think I'd only get 2/3 of the mortgage payment in rental income) or be done and sell given that I'd probably end up owing @$10k? Would there be a tax advantage to renting it out? What kind of professional can give me this type of advice? TIA
Ask your company if they're willing to pay for your expenses to sell your home. You would be surprised! A lot of companies are offering this...
If you rent it out you may experience a huge problem if you dont hire a professional real estate company to lease it for you. They may charge you a lot but they will keep your home from being destroyed...and will always help you find a renter.
Another issue to look at is your home going to be easy to rent it?
Is there a large rental market in your area? If not, you maybe stuck paying that mortgage payment if the current renter leaves or if you can't find one period.
10k is a lot of money, but you may risk financial distress on your credit history if you miss the mortgage payment.
Your answer may also depend on the city/state you live in. Some areas have great appreciation while others are going down.
Quote:
Originally Posted by az1969
Hopefully this is the right board. My company is going to relocate me and my wife to Europe for a few years. We only bought our house 2 years ago and I don't think that given the market i'd get what I paid for it and certainly not what's been put in to it. Should I rent it out (even though I think I'd only get 2/3 of the mortgage payment in rental income) or be done and sell given that I'd probably end up owing @$10k? Would there be a tax advantage to renting it out? What kind of professional can give me this type of advice? TIA
There are 2 decisions, emotional and financial. Is this your perfect home in the perfect location such that if you sell it and move back, you'd be disappointed with every other house and always kicking yourself for selling. If it is, you might want to consider keeping it, but if it isn't, I'd probably try to sell for the following reasons: you'll have a loss each month of 1/3 of your mortgage payment plus any repairs plus the property managers expense. If you multiply this amount by the number of months that you'll be out of the country, it will probably be a lot more than the $10k you'll be losing by selling now. And once the renters leave, you'll have additional expenses from wear and tear to bring it back to today's condition. But do the math, because you didn't provide any numbers with your question. I'd also take the recommendations of the other posters regarding talking with your company about some type of compensation for selling.
Unless your company does not provide a relo package, which includes purchasing your current home at current appraised value, then dump it, especiallty if you rent at 2/3 of mortgage payment.
I currently own almost 30 rental properties, and this is not the business for an absentee owner, especially in another country and a management company will only cost you more money, and they will not keep a good eye on your HOME while you are away.
You will lose way more than 10k in a "couple of years" while you are away renting your home, and save yourself and your family numerous headaches to boot.
DO NOT CONSDIER SELLING YOUR HOME TO ONE OF THOSE "WE BUY HOUSES" PEOPLE EITHER!!!!
I agree brent7784, being an absentee landlord could bite ya in the butt. We do property management for owners of rental homes in the vacation communities here in the Pocono's, and we keep an eagle eye out for our clients, at a reasonable rate. Hopefully, if renting the property out is something you are seriously considering, you can find a reliable, reasonably priced property management company.
My question is, if you are only going to be in Europe for a few years, won't you need a home to move back to?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Take the Loss
