Rent or sell in quiet market?
Question from Evelyn updated on 22nd May 2019:
I am thinking of renting out my property so that I can keep my child in the current school zone. However, the rent difference is not in my favour and I will have to top up my mortgage and possibly pay rent at a higher weekly rate. In a single income household just managing the mortgage (principal and interest repayment), should I keep to rent or sell in the current dampened housing market?
Our expert Kris Pedersen responded:
Given the fact that you want to stay in the area, I would personally be recommending you to hold - but only if you are sure you can afford to do so. What you don't want in the current market (actually in any market but especially a slow one) is to be put into a forced sale situation so if you are finding things tight it may pay to sell. Another option is to see if you can restructure your mortgage. Interest rates have dropped substantially and you may be able to extend you term to lower your payments as well to relieve cashflow pressure.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz