Tired of Owning a Home & Looking to Live Out Your Dreams of Traveling?
People change, and it’s not uncommon to hear about a friend or colleague leaving their day-time jobs to pursue what they’re passionate about. For some that may be starting a business, or pursuing a life-long dream, or for many, it can be traveling and experiencing what the world has to offer. For these people, owning tangible things has lost its value, and they would rather spend time on experiences that make life-long memories.
To help put this in perspective, a recent survey conducted by Harris Poll found that 78% of Millennials would prefer to increase their spending on experiences rather than physical things, pointing to moving away from materialism and more to real-life experiences. This generational shift in priorities has hit home (pun intended) for older generations who own a home and would rather find a calling that is more meaningful to them. Homeownership has lost its priority status and now they look to turn that home into a ticket to realizing their dreams.
Selling vs Renting: What to do with a house before traveling.
If you own a home and are debating about whether to rent or sell before traveling long-term there are a few things to consider. Regardless of what you decided to do, just remember that this is a big decision that may greatly affect your travel plans – so plan accordingly.
Selling
| Pros: |
Cons: |
|
Travel with peace of mind knowing that you don’t have to worry about any mortgage payments, maintenance, repairs, taxes, or fees. |
On the contrary, if the market isn’t doing so well then you could lose money on the transaction leaving you with no money to travel. |
| Benefit from the extra cash flow, especially if you bought well and made a good profit from selling – this could help fund most of your travels. | Time/cost to sell a home can add up, especially if you’re planning on doing a traditional sale. |
| If you have plans to return to the same area then you’ll have to consider if you’ll be able to re-establish yourself in the community and purchase a new home. |
Renting
| Pros: | Cons: |
| Enjoy passive income as you travel. Depending on how much you earn from the rent you might be able to travel without having to work on the road. | You still have to worry about financial obligations such as mortgage payments, property taxes, insurance, maintenance costs, and repairs costs. |
| If you plan on returning home after your fun-filled traveling adventures, then this might be something to consider. | Managing tenants can be a hassle on its own, and having to do so while out of the country can become a real headache. |
| The IRS now considers the property a rental which could mean a higher property tax and higher capital gains tax when selling |
Selling options to consider
Traditional Sale: If you’re not in a rush to get on with traveling and don’t mind paying out commissions, closing costs, repairs, moving fees, escrow, etc. Then going the traditional route with a real estate agent is your best bet. This might work out in your favor if the market is right and the home sells for more than market value.
FSBO: You guessed it! For Sale By Owner mean you’re selling your house on your own – which is easier said than done. There are a lot of costs, regulations, and paperwork required that can become quite overwhelming for even the experienced homeowner. However, if you’re up to the task here are a few things you should know first.
Direct: If you can’t wait to get on with the travels and don’t have the patience for a traditional sale, but also don’t have the expertise to sell a house on your own. Then selling your house direct to a cash buyer might be your best bet. You won’t have to worry about a long selling period or worry about any of the fees associated with selling the house. Additionally, most cash buyers handle all of the paperwork and make sure escrow runs smoothly.
If you’re ready to sell your house and start traveling we can help!
We get it! Not everyone has the time or the expertise to sell a house in the traditional manner or on their own. Many of the homeowners we’ve helped come to us knowing that we can close quickly and they can receive a cash offer that’s all net to them. Additionally, if you’re looking to travel long-term you won’t want to worry about all of the hassles of managing a rental property or the extra fees come tax season. So give us a call directly at (760) 566-7716 or fill out a form on our website to speak with Neva who can provide you with a cash offer and get you one step closer to living out those dreams of traveling.
What is Shrinkflation? Impact on Home Values
Shrinkflation is is a unique period that occurs when the price of a house remains the same, but the amount of square feet you receive is less. As inflation increases raising the market, homeowners and companies are trying to recoup their investments. According to...
Selling a Home with Lead or Asbestos Problems? Here’s What You Need to Know and Options Available to Help Make the Sale Easier.
Seller’s Duties to Share Information About Lead Dangers If you are selling a house that was built before 1978, there are responsibilities you have in sharing information about lead paint and other sources with your prospective buyers. If you aren’t sure whether...
3 Inspiring Stories of People Who Sold Their Inherited Home – What They Did With the Money
Inheriting a home can be a blessing or a curse, depending on your circumstances. For some people, it's the perfect chance to finally live in their dream home. For others, the idea of taking on the extra property – and all of the associated responsibilities – is...