Does it make sense to rent a home if the rent won’t cover the mortgage?
Home Mortgage
louisebova asked:
I will most likely have to pay $200 or more to cover the mortgage every month. Does it pay to hold onto the house until the market gets better and I could sell it without losing money?
Roland
I will most likely have to pay $200 or more to cover the mortgage every month. Does it pay to hold onto the house until the market gets better and I could sell it without losing money?
Roland
July 12th, 2009 at 5:09 am
Nathan
paying only 200 a month is better than paying the entire thing.
Holding on to the house would be a good idea, as eventually the market will recover and the prices of houses will eventually rise again (even if it takes a while).
it’s kind of like the stock market. You buy low and sell high, only an idiot sells low out of desperation. Hold on to the house, and if you can make it easier to make the payments by renting it out, then that’s a plan.
July 12th, 2009 at 8:58 am
Erin
Yes, it does. You may be out of pocket a couple hundred dollars each month but, you also will get some decent tax write offs that will make up for that. When the market gets better, then you can sell.
July 12th, 2009 at 2:31 pm
Kenneth
Keeping the house is actually a good investment even though it might not appear to be right now. How about fixing the house up a little bit more, to make it more appealing and you could rent it for a little bit more. There are lots of people who would prefer a house instead of a small apartment. You have plenty of options with a house.
If your house is small, it might actually sell better now. Look into it all of your options. My neighbors just sold their very large, expensive house to move into a smaller ranch because they could afford their mortgage. It is a new build and only 2 years old! Believe it or not, another couple already bought their house! I guess the market swings both ways. You have some homework to do and some decisions to make. Just remember, owning a house or property doesn’t really depreciate. Good Luck!
July 15th, 2009 at 10:14 am
Stacey
It’s a decision only you can make based upon your whole financial picture, and you maybe should consider talking with a finanical advisor as well. You would want to make sure you understood all the tax implications turning this into a rental and then selling in the future.
July 18th, 2009 at 10:18 am
Benjamin
I think it’s better to hold on to the house if you’re not too much upside down on the house. If payment is to high you can try to refinance and restructure your loan to get a better payment or get some money out to pay off your depth so you can have a lower bills payments each month. Check out this web site to see if they can help you lower the payment. If you like what you see,, you can just apply on line and save some money.