Sell or rent?
Question from sam updated on 30th March 2012:
I am planning on going on my OE at the end of 2012 for a year and can't decide if I should sell my 1960s three bedroom home in Hamilton or rent it out? I don't plan on living there when I return and I should have paid of about 30% of the mortgage by the end of 2012.
Our expert Kris Pedersen responded:
You need to do an opportunity cost analysis. Try and work on some assumptions about what hanging on to the property does for you, both short and long term. Then compare this with what benefit you are likely to have by selling the property. Remember to include any sales costs in your comparison.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz
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