A job in the military demands moving back and forth between cities due to the uncertainty of your job postings. Hence, owning a house as a military person comes with its own set of challenges and tough decisions.
Being an active-duty officer means that you might get deployed to another base within short notice. This leaves you with a tough decision to make as a homeowner – whether to sell or rent your Norfolk home.
This dilemma can be solved by thinking objectively and by asking yourself the following five questions, to arrive at a concrete decision.
1. Can you afford to pay the mortgage?
Paying the mortgage on the house you currently own in Norfolk is a long-term financial commitment. If you get deployed to another station, you will have to find a new home there as well, and pay rent for the same.
What you need to analyze is, can your current income pay for your mortgage as well as the rent of your new home? Even if you decide to rent out the house you currently own, you still need to be confident that you can handle a few months of dual financial responsibilities.
Examine how much of a financial risk you can afford to take and decide accordingly.
2. What is the market currently like and how likely is it to improve?
In order to sell your house, you need to have a firm grasp of the current Norfolk property market. If it is a seller’s market and there is a chance for you to turn a profit by selling the house, then it is best to sell it. However, if you are going to lose money by selling your house, you can always rent it out temporarily and sell it later when the market is right.
If selling is off the table, you can hire a property manager who can help you make the most of your investment.
3. How good is your property location?
One thing that you need to check with your property manager before you rent or sell your house is how the location of your house affects its market value. If your house is in a neighborhood that is close to schools, has a kid-friendly atmosphere and various amenities, then it is likely to be valued more.
The better the property location, the greater your return on investment.
4. What are your future plans?
Your plans for the future are going to play an important role in your overall decision. If you are likely to move back to the area, then renting out the house is a better choice as opposed to selling. If you are retiring soon and would like to keep the house as an additional investment, selling would not be the right decision.
On the other hand, if you have just started active service and are expecting a few years of constant transfers, you may think of selling the house if a good potential buyer comes along.
5. Do you want the additional responsibility of being a landlord?
Renting out your house sounds like a great source of income until the tenants prove to be difficult. Managing your property from afar can be stressful, especially when it comes to rent collection, maintenance, and rental property renovations.
If you don’t want the additional responsibility of being a landlord but do not want to sell the house either, you can hire a property manager to take care of the property.
After all the above considerations, the ultimate decision to sell or rent out your home is entirely up to you. Neither of these choices is right or wrong. You just have to choose the one that fits your needs the best! Connect with us at Doud Realty Services to get professional advice on managing your Norfolk property.