I’m Leaving The City, Should I Rent or Sell My Home?

Deciding whether to sell a property or rent it out and hold onto it can be a difficult decision. This is especially true in Vancouver, where the real estate market can be volatile and unpredictable. There are pros and cons to both options, and it ultimately comes down to your individual circumstances and goals. Let’s explore the pros and cons of selling a property vs renting and holding a property in Vancouver.

Pros of Selling a Property in Vancouver:

Profit: One of the biggest advantages of selling a property in Vancouver is the potential for profit. If you bought the property at a lower price and the market value has increased significantly, you could make a considerable profit by selling it. This money can be used to reinvest in another property, invest in other areas, or simply enjoy.

Avoid Market Downturns: Vancouver’s real estate market can be volatile, and it can be difficult to predict market downturns. By selling your property, you can avoid potential losses during a market downturn and have the flexibility to reinvest in a more favorable market.

Simplify Your Life: Owning a property comes with responsibilities and maintenance costs. By selling your property, you can simplify your life and avoid the stress and expenses that come with being a landlord.

Cons of Selling a Property in Vancouver:

Capital Gains Tax: When you sell a property, you will be required to pay a capital gains tax on any profit made. The tax rate depends on your income bracket and the length of time you owned the property. In Vancouver, this tax can be substantial, and it can significantly reduce your profit.

Loss of Passive Income: If you sell your property, you will lose the passive income that comes with renting it out. This can be a disadvantage if you are relying on this income to supplement your finances.

Pros of Renting and Holding a Property in Vancouver:

Passive Income: One of the biggest advantages of renting and holding a property in Vancouver is the potential for passive income. The rental income can be used to pay offyour mortgage or reinvest in another property.

Tax Deductions: As a landlord, you can claim tax deductions on expenses related to owning and maintaining the property. This can include property taxes, mortgage interest, repairs, and maintenance costs.

Asset Appreciation: Vancouver’s real estate market has historically appreciated over time. By holding onto a property, you have the potential to benefit from long-term asset appreciation.

Cons of Renting and Holding a Property in Vancouver:

Property Management: Being a landlord comes with responsibilities and management duties. This includes finding tenants, collecting rent, maintaining the property, and dealing with tenant complaints and issues. If you are unable or unwilling to manage these responsibilities, you will need to hire a property manager, which can be expensive.

Market Downturns: As previously mentioned, Vancouver’s real estate market can be volatile. If the market experiences a downturn, the value of your property could decrease, and you may not be able to sell it for a profit.

Tenant Issues: Dealing with problem tenants can be stressful and time-consuming. If you have difficult tenants, you may need to evict them, which can be a complicated and lengthy process.

Ultimately, the decision to sell a property or rent it out and hold onto it in Vancouver comes down to your individual circumstances and goals. If you are looking for passive income and long-term asset appreciation, renting and holding a property may be the best option. However, if you are looking to simplify your life, avoid market downturns, and potentially make a large profit, selling your property may be the better option. It’s important to consider all the pros and cons before making a decision, and consult with a real estate