They say that you can’t have your cake and eat it, too. We’d be impressed if you could find a way! However, we at Dwellsy put a slightly different spin on it: We believe that you can own your home and rent it, too. In fact, we think that it can be a smart idea, especially given the extraordinary changes to the real estate market and work environment caused by the COVID-19 pandemic. You might be wondering why one would want to own one home and rent another. Let’s dive into all of the intriguing ways that this move can save you time and money in the world of real estate and rental homes.
Who Should Own and Rent?
During the COVID-19 pandemic, lots of people have moved because they’ve been working remotely. They’ve bought homes in new cities and towns, starting to put down roots there. Now, however, these people are being asked to return to work in person. This is the kind of person who might want to keep the house they bought, but also rent a place to stay where they work.
They’re not the only ones for whom this is a good option. Some Americans have commutes of three or four hours. Others might stay away from home for part of the week by their offices, in cities too far away to commute to, and come home for the weekends. In all of these cases, these people may have bought homes in places they love, or might be considering buying them. But they might hesitate because their home is not near their workplace.
This might sound like a luxury, but it’s not only an option for the wealthy. Many people buy houses where they eventually plan to retire and rent somewhere else in the meantime, where the rent is low or even controlled. If you’re in an area where real estate is very expensive, it might make more sense for you to rent there and buy somewhere else. As long as you’re strategic about where you rent and where you buy, this could be a solution for you. Let’s go deeper into why.
Pros of Owning and Renting a Home
Having property in a place you love no matter the distance from work
This is one of the most obvious ones. There are so many reasons you’d want to own a home in a place you enjoy. From the climate, to the nearby landmarks, to the culture, to the food––if you find an area you like, it makes sense to have property there. You don’t want to let that go, even if your workplace is based somewhere else. Renting a home near your work is a great compromise in this instance.
Building equity in a property you can afford and intend to keep for the long term
A house is a long-term investment, so if you can start investing now, you should. If you start building equity now, you might own it fully by the time that you finally move there for good, if you intend to do so. This is a way you can start building equity and still work somewhere else, thanks to your rental home.
If you live somewhere you can afford, your expenses will be reasonable
The key here is strategy. When you’re looking for a rental home, make sure that you rent in an area which you can afford. In order to make this decision work for you, you want to rent in an area where the rent is lower, so that the decision ends up making financial sense. If you’re wondering where you might rent, we have a list of great places to rent.
Stability for the rest of your family, especially children
If you’re struggling to figure out how to return to in-person work far away, you’ll likely be concerned about the rest of your family. Maybe you have kids, and you don’t want them to have to move because they’re settled into their current homes. It’s also nice to be familiar with your kids’ school district without having to research a new one. Having a rental home where you work would allow your family to avoid moving, while you’ll be free to travel to work when you need to do so.
You’ll have somewhere to stay if you have to be near the office for a while
There might be a day where you need to stay late, or even an emergency which might keep you near the office for several days. In cases such as these, when you don’t live near your place of work, you might be worried about where you’ll stay, or you might end up sinking money into hotel rooms. If you have a rental home in the area where you work, you’ll avoid this problem––you’ll always have a backup plan.
Your rental home could be another source of income
If you know that you won’t be going into the office for a while, you could potentially sublet your rental home and make some money off of it. You’ll need to talk to your landlord, but it’s a good way to make your rental work for you.
If you end up being relocated for work, you won’t have to worry about selling your home
People move often for work nowadays. You never know when you’ll have to relocate. If that happens, you’ll be glad that you decided to rent a home near your workplace instead of living there. You won’t have the hassle of selling your home.
We hope that this helps show why owning your home and renting it, too, can be such a good idea. If you’re looking for another solution, why not consider renting a home before buying? Best of luck as you search for your new home.
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