If you want to relocate to another state or move to a different home in your same community, it doesn’t automatically mean putting up a for sale sign. As a Realtor helps you hunt for a new home, weigh the benefits of selling your previous home or renting it out. Some people keep their home because they want the tax deductions associated with investment properties. The renter’s market in Dallas is strong. According to an article by The Washington Post, a person’s timelines help solve the riddle of whether to sell or rent.
Getting your home rented out fast
If you can’t rent your home out quickly, it could cost you money. Review your finances to determine whether you need the equity in your current home in order to buy the next house. In some cases, it’s more desirable to have the passive income generated by a Dallas rental property. Talk to an experienced Realtor about a time estimate for how quickly your home could sell vs. how soon you could find a qualified renter.
Looking at your future tax bills
If you sell your home where you resided for at least two years, you will not have to pay any capital gains taxes on the sale. However, if you turn you Dallas residence into a rental property, you will owe capital gain taxes when it’s time to sell. On the other hand, some people fall into the “sweet spot” for income levels that qualify them to claim up to $25,000 in rental losses out of their earned income. If you earn less than $150,000 a year, talk to a tax adviser about whether owning a rental property would help you reduce tax liability.
Of course, some of the advantages to renting out a home disappear if you simply don’t like the stress and hassle of dealing with the unknown, managing a property or working with a property management company. If you have bad associations with the home or the house represents your divorce or a death, consider making a clean break by selling it. With the summer real estate market in Dallas shaping up so well, it’s a great time to consider
About us: I have had the pleasure of living and working as a realtor in Dallas metro and the surrounding areas and I love sharing real estate tips with others. Throughout my Dallas metro real estate career I have had the privilege of assisting buyers and sellers of Dallas homes with their individual real estate needs. I’m here for you as well. For more tips on selling or renting out your home before buying a new one, contact us at 469-269-6541. We share the latest news and updates concerning the Dallas real estate market.