Rental properties are taxed higher in some jurisdictions. If this applies to your rental unit, this will wipe out any profit you may be expecting. You could be losing money on this.We're moving to a new house soon. We have assumed that we'd sell our current house, but the combination of current rents and our low mortgage rate has me questioning whether that's actually the best option. Details are roughly as follows:
Current value of house: $425,000
Current mortgage balance: $200,000
Mortgage rate: 2.75%
Mortgage term: 12 years remaining
Property taxes: $8,000 per year
Insurance: approximately $2,000 per year
Monthly PITI: roughly $2500
Rental value: $2800
Some of this is estimated, obviously; for example, we don't know exactly how much our house would sell for, or how much insurance would go up if the house is no longer our primary residence.
We'd be living a few blocks away and my husband is handy, so we could do basic maintenance stuff ourselves, although I anticipate that the house will need a new air conditioning unit in a few years and we would obviously need to hire someone for that as well as for any other major repairs.
Thoughts on whether it would be better just to sell and stick the money in stocks? That would certainly be easier from a day-to-day perspective.
Does your husband want to be a landlord and do all the maintenance that it'll require? If so, keep the house and build equity.
If it were me, I'll sell the house. Take the capital gain - tax free. Invest it in total stock market - both US and Ex-US.
Statistics: Posted by Metsfan91 — Sat Apr 06, 2024 11:57 pm — Replies 40 — Views 2180