Some ask should I rent or sell my old place prior to my move? Well this depends on market conditions. Being a landlord can come with minor headaches, but also provide a stream of long term income for the future. The balancing act for me is when to sell. If I bought at a low price and now I am renting it out but the market has made significant gains, then I will have to pay capital gains on the difference from the basis to the new selling price.
This is not such an easy decision to make. You will want to consult with a professional real estate agent who knows the market well to come to your decision.
Questions to ask would be:
- Can you afford to own two homes? What if you cannot find a renter for some time?
- Will your old property appreciate?
- Can you effectively oversee a rental?
- Will you ever return to the area?