Getting to the bottom of the smartest financial move in a hot real estate market
The housing market has been a wild ride over the past few years. If you’re a homeowner, your home has likely significantly increased in value. Which leads to the question: should I sell my home and cash in on this housing market?
While we can’t answer this question for you, we can give you a few reasons why it might be a good idea to think twice before you sell:
All homes are priced high right now
So, you want to sell your house and make bank… Great! Just remember everyone else is currently trying to do the same thing. Since interest rates are higher now than they’ve been in decades, you’ll likely be paying more for a similar house even if you stay in your current neighborhood. If you have to move for a job or other important reason, go for it. But if you hope to make a lot of cash, this way may end up costing you in the log run.
You need to have a solid moving plan
Making money on your home investment sounds nice, but where will you move next? What’s your Plan B if you can’t find another home within your price range? Are you ready to move back in with a family member if push comes to shove? What about commute time to your job? In many areas of the country, especially larger cities, housing is in short supply for everyone. Finding a home to purchase or rent can be challenging. Keep these things in mind as you think about selling your current home.
Have you considered renting out your home?
If you’re unsure about selling your home just yet, consider renting it out. You can make a nice profit using vacation rental sites to make your home available to tourists for a week or a weekend. If you own a home in a high-rental-market city like New York, Austin, San Francisco, or Seattle, the potential to make extra cash is even higher. If you have other housing lined up, you can even list with a rental agency and rent out your home in 12-month increments. Doing this will help you cash in on the undersupplied rental market, without sacrificing your investment. Of course, this would put you in the same boast as our first two points, and you’ll need a viable living arrangement without your primary home. Unless you have an offer to crash on a friend’s couch rent free, you could just end up spending all your profits on lodging for yourself. Before you explore this option, explore all the costs including time and risk.
Getting a roommate can help you stay in your home
Do you want some cash each month to put toward your mortgage? Adding a roommate can help. Depending on where you live, a single roommate could bring in hundreds of dollars each month (and maybe more than a thousand). Sure, your utilities will increase with someone else in your home, but you can set your monthly rental rate to account for that.
There are so many benefits to having a roommate. Things like:
- Roommates can save you money by helping with your mortgage and utilities.
- Roommates can care for your plants or pets when you’re out of town. Plus, having your home occupied when you’re not around is a great way to protect it.
- You’ll always have someone around to talk to or share life’s little moments. Never binge Netflix alone again!
- You’ll make a new friend, and maybe several, as you get to know your roommate’s circle of friends.
- You’ll have someone around to share the house cleaning and upkeep.
Finding A Roommate
Ready to find a roomie? We can help you sort things out. At roomates.com, we offer a smart, safe way to find a new roommate in your city.
Create a free profile to get started. Our secure and proprietary algorithms can match you with potential new roommates that fit your lifestyle preferences while helping you continue to invest money into your home.