After you take the training wheels off your bike and learn to ride it, you’d never consider putting them back on again. Similarly, once you’ve owned a home, you might think you’ll own a home from now on but there may be some situations where it might make sense to rent again.
Big shifts in a person’s life like a divorce, death of spouse, empty nesting or a temporary transfer to a new city are certainly things that may warrant renting, at least temporarily, until those circumstances develop the particulars.
A good example might be that you think you’d like to move downtown. Before selling your home and purchasing a condo, it might be enlightening to rent an apartment to see how you’ll adapt to the changes in that style of living.
The sales and purchase expenses incurred with real estate are absorbed over the period ownership which is usually between ten and twelve years. When the holding period involves only a few years, it can negatively impact a homeowner’s equity.
Like any move, especially coordinating the sale and purchase of two homes, there are a lot of issues involved. Your real estate professional can provide information that will help you to make better decisions on whether to buy, sell or rent again.