The family is growing, the condo has become too small. Is it more advantageous to sell it to facilitate the purchase of future property, or to rent it out to keep it as a real estate investment?
Renting a condo is an excellent way to diversify your investments, believes Tania Addou. However, you need to have a strong enough back, because in most cases the rental income will not cover all of the expenses. The condition of the building should be well known, as special assessments for future work could negate any positive returns. Go for the condo for rent Damansara Utama and expect the best ownership.
Collect your stake
For many young owners, the question of renting a condo or selling it is not easily resolved. This is particularly the case when you bought less than five years ago, or when the condo market is not favorable.
Take the example of a Damansara Utama condo bought for $ 200,000, with a down payment of $ 10,000 and a mortgage insurance premium of $ 4,000. With an initial loan of $ 194,000, after two years the mortgage balance will be approximately $ 184,000. If it is resold at the same price, the real estate broker’s commission of $ 8,000 to $ 10,000 must be deducted. If we add the other transaction and moving costs, there is almost nothing left of the initial down payment!
On the other hand, leasing can also be an unattractive avenue, especially if you have to absorb a deficit of $ 200 or more per month, in addition to the monthly payments of the new property. “Each owner is in a different situation. There are some who just aren’t comfortable with the financial risk and hassle that comes with leasing. ”
To make calculations
When a client wants to sell her condo to buy another property as a couple, she always discusses the possibility of renting it rather than selling it. She does the calculations and, above all, she approaches with realism the family or love context. Returning to live in his condo, whether it is in Ara Damansara or Pandan Perdana, could prove to be impossible if he is held in undivided co-ownership and the tenant refuses to leave. If you have owned a condo for more than five years, the sale will immediately provide substantial funds for the next purchase. We will be released from any financial responsibility and hassles related to maintenance or rental.
Like our content? Click here for more!