should I sell or rent

S
Seasy
楼主 (文学峸)

Recently, I finally bought a house.  will move from my condo.  I want to sell the condo.  But there is a condo above me, same exact condo ( size and layout) has been on sale for 6month, last week lower price 5K.  I will be willing to sell for 30K less, since my is one story lower.  should I sell? or should I rent it out for a year or so.  let the above guy sell his and then I will sell mine?  or price at 30K lower and let it compete?  I do not want to do long term rental for sure.  also afraid the renter damage the condo after a year or so.  I want to sell, but directly compete of the same condo, would it a very bad thing?  

Please help me out with the decision.  

Thank you so much

b
borisg
how many units are on sale within a 0.5 mile distance?
2
24桥明月夜
Do you have mortgage? If you do, what is the interest rate?

If you have secured a low interest rate mortgage, I would suggest you think twice before putting it on the market. It is quite unlikely you would get the same low cost financing at any time soon.

If you have low interest rate mortage and rent would cover your monthly due and the expenses associated with the condo, maybe you should keep it as a rental property.

S
Seasy
Just counted, about 9 condos. the one upstair is 2nd lowest.
S
Seasy
no all cash. i only have it for 2yr, same or slightly higher
2
24桥明月夜
If so, I would say probably you should sell it for free cash
S
Seasy
yes! but not sure if it is ok to compete with upstair one.
S
Seasy
if the upstares one not for sale, I'll sale mine. but now

But now the upstairs one has been on market for almost 6 month.  not sure what price I should set and if it is effect upon the sale.  can not make the decision., 

S
Seasy
other thought is

another thought is:  the mortage rate is coming down soon, maybe the housing price will go up.  so rent out for a year, by then, the upstairs one should have been sold and the rate will be down and the price will be up.  then go for the sale.  of course, the assumption may not happen and the renter may damage the house....

2
24桥明月夜
Not sure why not. It seems like it is a big condo building,

so there are always some condos on the market for sale. 

Just put it on the market to see if you can get a satisfactory offer. 

2
24桥明月夜
Understandable:) Then it is a bet. Either the price goes up

and you would miss, or the price does not go up then you have to let your money sit on a "dead" asset.

So you can do this: does rent cover all the expenses and give you a yield no much off the treasury yield? Or even better?

s
sj1993
I was in similar situation. The other unit is better

layout  and preferred model.  My realtor said not to wait.  I cleaned it up nice - repainted whole unit, changed carpet and a couple of light fixtures.  Even the unit is dated, sold in 4 days.   I priced a bit lower than the other.  

I would buy the other unit myself, but you never know.  

 

b
borisg
good example. 只要看着新就好卖。
S
Seasy
small building, only 16 units. 9 for sale is within 0.5miles
S
Seasy
good to know.
S
Seasy
haha, it is about the same as the 4% yield. hard to decide
S
Seasy
but that is self manage and no big repair.
S
Seasy
I don't need the money, am thinking to put all money in SPY