Seizing opportunities to make any decision easier is essential. That way, you can choose a path quickly, allowing you to move forward. If you\u2019re debating between keeping, renting, or selling your current home in Phoenix as you prepare to downsize, here are points to consider.<\/p>\n\n\n\n
What to Do With Your Home: Keep vs. Rent vs. Sell<\/h2>\n\n\n\nThe Pros and Cons of Keeping the Home<\/h3>\n\n\n\n
Usually, the main benefit of keeping the home is the ability to pass it down<\/a> to a family member. That\u2019s especially true if the house is paid off (or nearly so) and in good repair. In that case, it can provide a family member with a substantial amount of value without many of the financial hassles that come with the ownership transfer. However, it\u2019s still possible to inherit property with a mortgage<\/a>, so keep that in mind.<\/p>\n\n\n\n When it comes to drawbacks, ongoing costs and maintenance are a big part of the equation. Even if the house is paid off, you\u2019ll have to deal with property taxes and insurance. Plus, maintaining the structure and systems is essential to keep the house in good shape, which isn\u2019t always cheap.<\/p>\n\n\n\n If you\u2019re on a tight budget and can\u2019t transfer ownership immediately, then merely keeping the house might not be a great option. But if that doesn\u2019t apply and you want to pass it down, it\u2019s worth considering.<\/p>\n\n\n\n <\/p>\n\n\n\n Renting the home can be the right choice if you want to generate long-term income and are open to navigating ongoing expenses. While you\u2019ll still owe property taxes and have to cover maintenance costs, you\u2019ll typically get a set sum from your tenant each month the house is occupied.<\/p>\n\n\n\n As for the drawbacks, operating as a landlord can be a lot of work. Landlords have specific obligations<\/a>, and they can be a lot to manage. While you can choose to hire a property manager<\/a> instead, you\u2019ll have to direct some of your rental income to cover that cost. Depending on what the property manager charges, that could significantly limit your earning potential.<\/p>\n\n\n\n There can also be some tax complexities you\u2019ll need to navigate. Additionally, if the property is occupied when you pass, it can lead to difficulties for the heir.<\/p>\n\n\n\n Generally speaking, selling your home has a few drawbacks. The main one is that you can\u2019t pass that property down to an heir.<\/p>\n\n\n\n Otherwise, most of what you\u2019ll experience is benefits. The Phoenix housing market is hot, with prices rising 31.3 percent<\/a> year-over-year (as of February 2022). Plus, the demand for housing is expected to remain high<\/a> throughout 2022. While mortgage rates are rising<\/a>, concern that they\u2019ll keep going up could keep buyers in the market.<\/p>\n\n\n\n By selling, you also eliminate any ongoing responsibilities relating to the property. After the sale, maintenance, property taxes, and insurance for the home are no longer your responsibility. You can also use the proceeds as a nest egg, giving you extra cash to fund your golden years.<\/p>\n\n\n\n![](\"https:\/\/lh6.googleusercontent.com\/31u-7UXmikslzUuVi-RTSTUh5FPwzwt8REL0YvjdrPALKTp7LqozemAa0clR-zaxfGd7Mr_tu5kZDK1mVFFJNYLcb7jga-3ZsWtpfeH1MuJ-VIxOuVXGyDnybE1oqn1RDKYKhvxX\")
The Pros and Cons of Renting the Home<\/h3>\n\n\n\n
The Pros and Cons of Selling the Home<\/h3>\n\n\n\n