Should I Rent Out or Sell My Old Home?

**How to Make the Most of Your Old Property**

Change is often necessary, and the same applies to where people live. While many spend years in one house, others eventually move on to a new property. Sometimes space is no longer sufficient, the neighbourhood no longer suits, or a job relocation creates the need to move. Whatever the reason, homeowners often wonder whether to sell their old home or keep it and rent it out.

**Renting It Out**

The concept of owning an investment property is increasingly popular, and retaining an existing home can be a direct path into investing. The property and neighbourhood are already familiar, maintenance history is known, and significant money may have already been invested in the home over the years.

It can serve as an accessible entry point into property investing while retaining an asset with personal history.

When renting out a former home, ongoing rental income is generated. This cash flow can contribute towards paying off the mortgage on the investment property, covering general living expenses, or servicing a loan on a new home.

Additionally, over time, the value of the property may increase, potentially leading to a higher sale price in the future compared to current market values. Holding onto a property until a favourable point in the property cycle can offer benefits, particularly if the market is quiet when upgrading.

Before making any decisions, consulting an accountant is essential to understand potential capital gains tax implications, as well as how rental income and expenses affect income tax. In some cases, tax deductions may be available when holding a rental property.

Overall, converting a former home into a rental property allows owners to retain an asset while creating an ongoing income stream. If circumstances change, selling remains an option down the track.

Property investment can be an effective strategy to accumulate wealth for the future. Many first-time investors explore ways to enjoy the benefits of retaining their home while creating a continuous flow of rental income.