Should I Sell or Rent My Condo When I Move?

Renting Can Provide Continued Income

While selling your condo will give you a nice pay check, renting out your condo can provide you with a long term source of revenue. This gives you the ability to earn money, while retaining your condo. Furthermore, Forbes.com notes that you can actually use a rental property as a tax shelter because you can deduct expenses like depreciation on your property against your income.

You Can Invest the Sale Proceeds

You should not look at the proceeds of a sale as a one time pay check; you can take this money and invest it in the stock market, which also has the potential to provide future revenues. According to CNN Money, there are risks associated with investing either in real estate or in the stock market, but the advantage of selling your condo and buying stocks is that you can diversify your investments. Having a diversified portfolio lessens the risk of investing.

Bottom Line

Although you can make long-term money from renting your condo, selling the condo and investing in a diversified stock portfolio is a lower risk option. This lower risk makes it a better choice for most people.

References

• CNN Money: Rent the Condo or Sell for Profit?
• Forbes: Rent Out Your Home. Cut Your Taxes.