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Can't Sell Your Home - Rent it out for a Year?
It's a Buyer's Market.
October saw the largest decline
in housing prices so far this year, according to the latest data from the
Calgary Real Estate Board (CREB). The average sale price for the month
came in at $457,513 — down 6.1 per cent from October 2014.
Three
Things to Consider as the Seller
Market economists predict that the economy in
Alberta will once again bounce back but it might be as long a year. Prospective
sellers are now considering three things. Lower the price. Rent out the
property year by year until the economy picks up. Take it off the market and
wait for awhile.
Rental vs. Dropping the Price
With total number of home
sales significantly lower in October, down 33.3 % compared to 2014 some sellers
want to pull out until the market improves. Can you afford to carry it or
should you rent?
The Pros and Cons of Pull Out or Tough it Out?
No one likes to bite the bullet
and sell at a lower price. If you can afford to carry two properties it might
be a wise choice. Reality makes it a necessary option. Phil Soper, president
and chief executive of Royal LePage has commented, [that] "as the year
plays out we’ll see continued softness in Calgary prices. The real question is
how soft?"
Meet Your New Tenants –
Maybe?
You may decide that a year of
rental income is the better proposition but rental property managers know that
the best situation for a rental is long-term. If you intend to rent on a year-by-year
lease basis there are pros and cons to consider.
Best Practises for Renting out your House
Don't expect your home to be in the same condition after
a year of rental i.e. tenants may not take care of your home as you would. Research
your tenants and ask for a substantial deposit to cover damages. The rent may
not be enough to cover your loss. If you have little or no experience with
tenants, perhaps hire a property manager with years of knowledge in the
business. Call Chris for more information. Mobile: 403-680-4479
Christopher Ashby
REAL ESTATE PROFESSIONALS
100, 5810 2 STREET S.W.
CALGARY, AB T2H 0H2
Office: 403-253-5305
Fax: 403-775-5156
E-mail: chris@yourhomeinalberta.com
REAL ESTATE PROFESSIONALS
100, 5810 2 STREET S.W.
CALGARY, AB T2H 0H2
Office: 403-253-5305
Fax: 403-775-5156
E-mail: chris@yourhomeinalberta.com
