Home News I’m close to retirement and I own 2 homes. If I sell my primary home, I’ll get $100K. My plan is to rent a place for $1,400. Is that a good idea?

I’m close to retirement and I own 2 homes. If I sell my primary home, I’ll get $100K. My plan is to rent a place for $1,400. Is that a good idea?

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Market Watch,

I have been retired for a year and a half. I own a house in Illinois and a small villa in Wisconsin. I want to sell my main home and save hundreds of dollars a month. I will end up with $ 100,000 in cash from the sale.

I would like to rent a townhouse or condominium in the same area. My plan is to rent a two-bedroom house in a smaller size for $ 1,400.My vacation home is used as Airbnb when I retire and in some cases downsize and rent
ABNB,
-2.93%
..

Is that the right idea?

From the bottom of my heart

landlord

Big movement‘Is a MarketWatch column that looks inside and outside real estate, from searching for a new home to applying for a mortgage.

Do you have questions about buying or selling a home? Want to know where the next move should be? Send an email to Aarthi Swaminathan at [email protected]

Dear homeowner,

First of all, congratulations — you’re about to reach the retirement finish line and two homes will launch!

Downsizing is definitely worth considering. However, since this rental market is banana, it may be better to postpone it.

Consider the fact that rents are rising steadily across the country. According to the company, rents increased by 3.9% in the first five months of this year alone. Apartment list..

Check out this crazy chart showing how rent has changed year-over-year. Realtor.com:

“You could live another 20 years. During this time, rents will rise steadily. Instead of increasing wealth from real estate, you will be exposed to more inflation,” said Atlanta-based Boardwalk Capital Management. Founder and President B. Scott Sadler told me. “You’re only saving hundreds of dollars a month, minus taxes. You don’t sell or borrow.”

In any case, “real estate builds wealth in the long run,” he added.

Even in a recession, high mortgage rates do not lower home prices for a period of time.check out This chart The St. Louis Federal Reserve Bank of St. Louis has shown that housing will be even more appreciated in the long run.

“”“Short-term trends should not influence long-term decisions.”


— B. Scott Sadler, Founder and President of Atlanta-based Boardwalk Capital Management

“Short-term trends should not influence long-term decisions,” Sadler said. “I don’t think people should sell their homes right away … close the room if it’s too big. If it’s too much maintenance, turn the grass into a natural area. One of the mortgages. If you want to repay the club, rent a room to a nurse, teacher, or college student. “

By renting a spare room, you can regain some of the money you can save by moving to a smaller rental unit.

But your idea of ​​renting a villa on Airbnb is solid.

Airbnb owners have been killed over the past few months as millions of Americans have resumed their vacation plans after the worst COVID-19 pandemic.

Short-term rental demand shows little sign of weakness, according to AirDNA. In a recent blog post.. The number of new reservations in May exceeded 17.1 million nights, an increase of 2.6% compared to last year. Demand increased by 17.9% year-on-year, more than 26.1% from 2019 before the pandemic.

In other words, you’re going to make money from that Airbnb. Put yourself down and enjoy the peace of mind of being a homeowner.

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