new strategy for home buying

New Strategy for Home Buying: Renting Out Your Previous Home

August 14, 2018

The housing market today is a little rough. Prices are going up and the competition is fierce, resulting in many homeowners holding off on moving to a new home. However, a different strategy for home buying is quickly gaining popularity. This strategy involves buyers keeping their old home and renting it out in order to afford the new one.

The Benefits

Homeowners that are struggling to afford the cost of moving to a new area or larger home can try this new strategy. It is a smart tactic since they will be able to pay for the home they desire using the continuous income from their old home.

Moreover, if the market is particularly competitive in the neighborhood of their old home, they should find no trouble finding renters. Since prices are hitting new highs, they will be able to make a large sum of money from renting out their home.

Many millennials are starting to enter the housing market as well. They have finally saved up enough money to afford their own place. Student debt and the housing recession caused a significant delay in this process. When millennials first enter the market, they are more likely to look for a single-family rental home.

The Risks

Some homeowners might not be thrilled with the idea of becoming a landlord. It is a risk, since there is a chance that damage could be done to the property. The homeowner would also be responsible for making sure everything is in good working condition before renting it out. It is important to make sure they have insurance to protect them and have done the proper inspections. If this seems too stressful, they could hire a rental company to handle the management of the property. However, they would not make as much money this way.

Lakeside Title Is Here to Serve You!

Lakeside Title provides title insurance and numerous title-related services, all while making sure your transactions and funds are protected and secure. Our processes streamline residential and commercial real estate transactions for lenders, realtors, buyers and sellers. To learn more, give us a call at 410-992-1070. We look forward to the chance to serve you!

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