Sell or Rent New home buyer?

Question

I recently purchase a home 6 months ago. 6.75% fixed 30 yrs. Im joining the military and may be stationed over seas within the next 6 months. My question is should i Sell the home or rent it out. My and my wife are new home owners and not sure what to do. She wants to sell it. I want to rent it. What would be more productive?

Answer 1

If you want to come back to that home then just rent it. Where is your wife going to stay while you are gone? If you sell now you'd be saving money on mortgage instead of breaking even.

Answer 2

I would rent it as this is probably the worse time to try and sell a home. The housing market is not so hot right now. In some case, you might not be able to sell the home if the going price for your neighborhood is less than what you bought it for. If that is the case, you renting it out would be your only option. The housing market will come back, but it will take awhile. Also, renting has more tax breaks. If you can rent it, I would wait it out until the housing market is favorable towards seller again..

check out http://ibooyah.com for investment and housing market conditions.

Answer 3

Being a home owner is becoming a luxury in CA, I dont know where you are at, but if you sell you will lose a lot of your money invested in those 6 months....
Dont sell it, rent it.... you have a nice rate.... if you can get someone that can pay you rent over your monthly payment you will be set!
Dont forget about the build of equity in your property, you can refinance in 2 years and get a better rate or even an OPTION ARM that will allow you to pay a minimum rate (starting at 1%)
Just dont lose your property or at least try not to pay too much for it while you are not living there!

Answer 4

If rent in your area is enough to cover the mortgage payments, you would be an idiot to sell. First you have little or no equity, and you will have to pay an agent so selling will result in a loss. You are also able to deduct your interest of of your taxes, this should be enough to pay for taxes etc. You simply build equity over time at no cost to you.

If rents will not pay your the mortgage, you need to figure out how much you can afford to dish out each month to cover the costs. If you can't afford to keeep the house, you may wish to try finding someone to take over payments for you. You will loose the money you put in, but walk out with credit in tact, and at the lowest loss.

Answer 5

It sounds like your landlady utilized the first time home buyers program and since the house is no longer her primary residence, she must repay $6K. She's in more trouble than you are. She knew she couldn't rent her house, so if she decides to take you to court if you break the lease, you would have a reason to break the lease. EDIT: If she can't come up with $6K, she may have no choice but to break the lease she has with you. She either has to repay the $6K or move back into the house. Her "problem" isn't with the mortgage company, its with the Government. The mortgage company isn't able to do anything to you. As long as she's making her payments, the mortgage company is happy. If she kicks you out, she's breaking the lease, not you.

Answer 6

Housing market is down (New Home sales),better rent it.But you have not mentioned the mortgage installment amount..If you like to rent it Mortgage installment + 70% extra for the free utilities like gas and Heat as well as normal maintenance.Renting is more lucrative cause you are a property owner.

Answer 7

If you are coming back definitely rent it out. Don't forget everytime you sell or buy a house you have to pay tax such as stamp duty, lawyer fees, etc.

Answer 8

You may lose money if you try to sell in this market. I say rent it