Hello, everyone! I hope this newsletter finds you well and enjoying the summer season. As we dive into the month of July 2024, I am excited to share some valuable insights and updates with you all. Sit back, relax, and let’s catch up on the latest in the real estate market together!
Market Update
Like so many aspects of this year, the real estate market has been volatile month over month. From high interest rates to industry changes, but with a consistent flow of buyers aspiring to become homeowners, all we can do is hold on tight and educate ourselves as much as possible in order to foresee what’s coming.
The Fed has once again held on to no change in interest rates, and many hope that come November (are we going to turn a blind eye that this coincides with the elections??), changes will indeed affect interest rates dropping… For now, here are July’s numbers for Denton county. Don’t hesitate to reach out to me if you need numbers for your county or city.
Should You Rent Out or Sell Your House?
When you’re ready to move, it is often a big decision that is based on a few other not so small factors?
Should you sell your home and use the money for your next chapter, or should you keep it as a rental and build long-term wealth?
And while many look at affordability as a deciding factor, here are some other questions to ask yourself to help make the best decision for you at this time.
Here is an article called “Renting vs Buying a House in North DFW, Texas” which I go more into detail about making the decision,
Is your house a good fit for renting?
Does it have aspects (e.g., a pool) that could create a higher liability? Is it in an area where renters frequently look for homes? Are there HOA restrictions to renting? Does your home require significant repairs?
Do you have a good understanding of the costs?
Certain aspects will remain the same, such as mortgage and taxes, regardless of the rent you will collect, or if you have to deal with some vacant months.
Your insurance will need to switch to a landlord policy, which can mean additional cost. If your home is older, plan to set aside at least 1% of your home value for ongoing maintenance and repairs.
If you are moving far away, you may want to consider a property management company; they can manage current tenants needs and responsibilities, renewals, advertising and finding new tenants, etc. but they come with another overhead cost.
Are you ready for the realities of becoming a landlord?
Managing a rental is a time-consuming and challenging job. You could get a wonderful tenant who remains in your home year after year with minimal demands.
This is everyone’s dream and does happen from time to time. Those are truly the ones to hold on to! Because it is not unlikely to get calls from tenants all hours of the day with maintenance requests.
Or you may find a tenants causes damage you have to repair before the next lease starts. You may have to deal with late payments, no payments, and in some cases evictions.
Understanding tenant and landlord rights for your specific area, and having a good support system, such as a real estate lawyer contact, will act as a good insurance policy for when that storm hits.
Summary
Bottomline, you will have to weigh the likelihood of the worst scenarios from time to time against the potential for cash flow or long-term equity investments. You might be up for the challenge. Or you might find that selling your home is a better financial decision and less stressful.
Featured Properties
3618 Perivale Blvd, Frisco, TX 75034
5 Beds | 5.5 Baths | 5,344 SqFt | Pool | $2,000,000
4709 Lemmon Court, The Colony, TX 75056
4 Beds | 2.5 Baths | 2,160 SqFt | 2 Car Garage | $425,000
Sherien Joyner
REALTOR®, GRI, Certified New Construction Specialist
1001 E. Hebron Pkwy, Ste. 118-133, Carrollton, TX 75010
