You may have come to a point in your life where you are considering selling your home. But have you ever thought of renting it out instead? Rather than selling your home to purchase another (where you may or not make money), why not consider renting it out to gain another form of income?
Here are the top four reasons why renting your home may be a good option for you.
- As your primary residence, your home is not really considered an asset or investment unless it is making you money. While the property market can increase (which would then make you money if you sell it), it can also be volatile, going up and down at any point. By renting out your home, you turn the liability into a money-making asset.
- Over time, the value of your home will increase; if you can rent out your home, you will be gaining the extra value in your asset while having someone else pay off your mortgage for you.
- Renting out your own home is a great way to start a career in investment, but it will not cost you anything extra. You already own this home, so you are not having to fork out any additional cash in order to pay off your mortgage and perhaps even gain some additional monthly cash flow.
- By renting out your home, you have the option of moving back at any time, as long as your rental agreement allows you to do so, of course. This option is an especially helpful one if the reason for your departure in the first place is due to something like a sudden job relocation or the likes.