Any Advice On Selling Your Home And Going Back To Renting For A While?
Mу husband аnԁ I аrе nеw homeowners (less thаn 5 years), аnԁ wе mау hаνе рυrсhаѕеԁ a home tοο hastily. I ѕау thіѕ bесаυѕе wе аrе nοt truly hарру іn іt аnԁ feel іf wе save money, wе сουƖԁ ԁο a lot better (mονе up). It's nοt thаt wе саn't afford thе home, іt's јυѕt thаt wе thіnk wе сουƖԁ ԁο better fοr thе money wе аrе spending. Wе wеrе thinking аbουt selling ουr home аnԁ going back tο renting аn apartment ѕο thаt wе саn save money аnԁ wait tο wisely bυу a home thаt wе really want. Whаt аrе thе pros (іf аnу) аnԁ cons οf going back tο renting fοr a whіƖе аftеr being a homeowner? WουƖԁ thіѕ bе a smart οr bаԁ ԁесіѕіοn?
Why not just stay in this house until such time as you can find one else where that you like? Being a home owner, you have growing equity in your house, something that could come in handy when you do decide to move. Also, selling your house and going back to renting could harm your credit rating, you will appear as though you dropped off the “radar” and there would be some concern as to why!
Another option would be to rent this house out for a short time, let your tenets pay your mortgage for you while you live in an apartment that has rent cheaper then your mortgage payment! Make sure it is some one whom you can trust to make the payments to you with out fail. This can give you some breathing room to find a more suitable house at your leisure.
go to a property dealer
At least in the home you are building up towards an asset. Renting is just throwing your money away without ever seeing it again, in the house it actually goes towards something. Stay for a while, sell, then relocate to another house.
I would stay in your home. It will go up in value and gain equity. When you rent, the landlord reaps the benefits of ownershp.
It’s unlikely that you could get a “better” home for what you’re paying now. If you sell and go back to renting, you could also wind up paying as much or more in rent, and not be getting any tax breaks, like you have in making mortgage payments. You also would cease to be getting any potential capital gains on the money invested in the home (not guaranteed, but likely to be more than you could get by just putting the money in a savings account). If you have good investment savvy, you might could parlay your mortgage equity (from selling) into a better return than what the house value-growth might be, but that is the risk you take.
If you are really unhappy in the house, though, you might still want to follow your idea, even if it DOES mean a small negative financial impact.
work out a balance sheet…all the costs associated with staying in your home, compared to projected costs and savings taking on a rental. without going into the finite detail of taxes, depreciation, etc., unless you’re in an area unaffected by the current slowdown, now is not the time to sell. on the other hand if you are secure…see something you really want and can minimize financing costs…dump the house and “move up”. it’s a tough call, i know, but in most areas of the country, it is a buyers market.
It seems to be a backward step as renting is inevitably more costly than a mortgage on a month by month basis. Owning your home also gives you status as many credit facilities advertised on TV are exclusively for homeowners with tenants being excluded. If you take the plunge and revert to renting, it is possible you might never get back into your current status (homeowner). I am sure that your credit score would also be affected by changing from being a homeowner to being a tenant. Perhaps you simply expected too much of home ownership and you feel disappointed; and if this is the case you could never achieve your desired happiness – you cannot achieve a state of blissful happiness that exists only in your imagination and is not actually there to be achieved
Never go backwards! If you are unhappy for any reason by all means make a change…but weigh all of your options first. Consider renting out your home until you are able to do something else. You are a home owner an obstacle many try to achieve. If it is necessary for you to rent and you have a bigger goal in mind, fine.
Just try and maintain the home you currently have because that home will lead you to another. (It can help you to qualify for something else that you really want)
Good luck!
There’s no taboo to being a renter. If your not happy then you should make the changes you need to be happy. This type of move will not adversely effect your credit credit rating. Sure, renting would mean that you are basically paying someone elses mortgage, but that other person is responsible for all repairs, insurance, taxes, and other sometimes costly responsiblities of homeownership. So, if the market in your area is stable enough to sell your home for a reasonable profit and think you will be happier renting for right now, then you should go for it!
Hope this helps
I wouldn’t go back to renting. If too unhappy, consider moving up now. You should have built up equity over the last 5 years which can be used as down payment for another house. Find a good real estate agent to talk over your specific situation. It won’t cost anything for their opinion.