By Allison Barnett
Associate Broker, My Home Group
The decision to rent or own a home is not always an easy one. For a variety of reasons, it may make sense to rent before you buy or alternatively it may make sense to lease out your home while you move to a rental property.
In Arizona, the rent vs own equation still supports owning a home most of the time, however that is dependent on the ability to come up with a down payment and qualify for a loan.
When a market supports owning a home over renting a home, that means that the mortgage payment to own a home is less than it would be to rent the same home. For example, the mortgage for a property could be as low as $1200 per month whereas the same property could lease for $2300 per month.
This is a market where being a landlord can be a good investment.
Perhaps you are considering upgrading or downsizing your house to make the next move.
It may make sense to hold a property and lease it out rather than selling it to provide monthly income depending on your situation.
Talking to a real estate professional about what you could get for rent would be a first step. They will be able to share with you a competitive market analysis to give you information about the lease value.
Then you would want to speak with a lender about your options unless your property is already paid off. A lender will be able to advise you about the best options to carry your property and give more information.
Take account of all the factors to make the best decision for your situation.
Allison Barnett is a licensed associate broker with My Home Group in both Arizona and California. She is also the managing partner of North 32nd, Inc. which is bringing revitalization of the community thru strategic partnerships with the City of Phoenix as well as local businesses. AllisonJBarnett.com | North32nd.com