Do you need the money from selling your current home in order to purchase a new home? If so, then you will have little choice but to sell your house or apartment. The truth is not everyone has the money saved up to be able to play landlord when they need to upgrade to a bigger apartment or move due to job changes.
What if you have no desire to be a landlord? If you’d rather stick with stocks and value convenience over any tax savings, then it may make complete sense to sell vs rent out your property. Furthermore, with stocks you’ll never have to worry about the boiler leaking or evicting a bad tenant. This may be the best path for someone who’s more of a digital nomad and doesn’t want to be tied down with responsibilities in a certain place.
Will renting out your apartment generate positive cash flow? You should ask your neighbors what they were able to rent their homes for and you should also look online to see where similar units in your building and neighborhood are being listed for.
Will the anticipated rental income cover your expenses of maintaining the property? Don’t forget to budget for unexpected building special assessments and repairs and maintenance. If the property won’t generate enough rental income to cover your expenses, then you may not be comfortable with holding onto it despite the tax benefits.
If you’re simply not comfortable with holding onto an asset with negative cash flow, then it may be best to simply sell it and monetize your home equity.