Greenway Properties

Should I rent my home or sell it?

 

Here is a great list of things to think about when deciding whether to rent or sell your current home. Many people are thinking of moving up right now to a larger home for the family or a home closer to work. With that decision comes another decision as to what to do with your current home. I am a huge fan of keeping your current home as a rental if you have the financial where with all to do it. I am in the business of selling houses right? If I am telling you to consider keeping yours, rather than having me sell yours and help you buy another one thereby helping you with two transactions rather than one, you should take a listen.

The bottom line is that real estate is typically the only kind of investing a family does and it is the easiest one to wrap your mind around and offers the best leverage in the investment process, meaning you can put as low as $10,500 down and own an asset worth $300,0000. The market is appreciating right now, it has been appreciated rapidly and that has started to slow down which is a GOOD THING for us. Continued years of 10+% appreciation will only take us back to the woes of the bubble bursting. Slowing to 4-5% appreciation which is where we are heading represents a stable market where people can safely watch their investments grow.

Here is how the math can work in your favor. If you are living in your 2 bedroom, 1 bath, 1,100 square foot starter house right now worth $280,000 and you sell it and by your 3 bedroom, 2 bath, 2,000 square foot family home on an acre for $350,000 you have one home appreciating at say 5% per year. That $350,000 house has earned you $17,500 in appreciation over the next year at 5%. However, if you kept your $280,000 home and rented it out to a nice young couple who covers your mortgage cost and went out to buy your $350,000 family home by next year you have seen 5% of $280,000 for $14,000 and 5% of that $350,000 home for the $17,500 giving you a total appreciation of $31,500 for the year while your renters pay off that home for you. Fast forward this out 18 years and your renters have paid off better than half of your little starter house that has been appreciating along for you and you have an asset that you can sell to finance an ivy league education for one of those little bundles of joy that got you out looking for the bigger house to begin with. This is the power of keeping your starter house. People build personal wealth over time by buying real estate not selling it. Once you buy a home, keep it and buy another when you can. Down the road you will have a nice nest egg.

Now it’s not all roses and Benjamins being a landlord. Read the article below which gives you great tips to consider before becoming a landlord.

Have any questions post them below, I am happy to help.

Article: Should I rent or sell my home?

 

Victims of the King Fire, Friends and Clients in Need!

Victims of the King Fire, Friends and Clients in Need!   Hello Greenway Properties Family, It is with a heavy heart that I share with you that my dear friends and clients Catrina and Matty have lost their home to the King Fire. We are currently collecting donations for them of clothes and personal items. For […]

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King Fire Pyrocumulus Sunset Time Lapse Video

King Fire Pyrocumulus Sunset Time Lapse Video:   The wind has shifted and the smoke has taken over Placerville today. It’s very post apocalyptic looking out there right now. Check out this great time lapse video of the Pyrocumulus cloud from Vimeo. For those not familiar with the term “Pyrocumulus” as I wasn’t until a […]

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King Fire Update 9/19/14

King Fire Update 9/19/14   Here is the most recent update from the King Fire Facebook page:   Dark, smoky and crowded 6 a.m. briefing this morning. The fire is currently 76,376 acres in size, 10% containment (south side looking good). The fire grew by about 3,000 acres overnight, mostly by backing downslope into canyons. Today’s […]

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Wiener Dog Races in Placerville this Saturday!

In the midst of all of the sad news coming out of the King Fire our community needs a reason to get together and share a laugh and some camaraderie, well here is our chance and nothing makes you smile more than a wiener dog race!!! Placerville is having their annual Octoberfest celebration on Main […]

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Pawed Needs Cat Carriers for cats displaced by the King Fire

PAWED in El Dorado County is working non stop to care for animals displaced by the King Fire – Here is one way you can help!   17 SEPT 2014 4:30 PM update – The El Dorado County Animal Services Placerville Shelter needs clean new cardboard cat carriers if you have them. There is a […]

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King Fire Update

Here is this mornings update from the king Fire Facebook page:   This morning’s briefing and stats for the King Fire were tough to hear. Since yesterday the fire has burned over ten miles to the northeast, almost to Hell Hole Reservoir, and is now in Placer County. As of this morning (Thursday) the King […]

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Tesla Motors open sources their tech – They are green and operating with a high level of integrity!

Original post can be found here:  http://www.teslamotors.com/blog/all-our-patent-are-belong-you June 12, 2014 All Our Patent Are Belong To You By Elon Musk, CEO TAGS: CUSTOMERS / MODEL S /  80 comments Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of […]

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Home remodeling at highest level in seven years

Home remodeling at highest level in seven years by Tara Steele in Economy, News – October 26, 2012   As many homeowners opt to stay in their homes longer during the recession rather than buying a news home, remodelers are reaping the rewards.   Home remodeling up considerably According to the National Association of Home Builders (NAHB), the Remodeling Market Index (RMI) […]

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Home price rises are forecast for 2013 in Sacramento

By Hudson Sangree hsangree@sacbee.com see original story here:  http://www.sacbee.com/2012/10/24/4933787/home-price-rises-are-forecast.html       Home prices in the Sacramento area are likely to rise significantly in the coming year and will outpace the national average, online real estate tracker Zillow predicted Tuesday. The Seattle-based firm projected that home values in the region will increase by an average of 5.6 […]

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