Should I Sell My Rental Property?
My son asked me a question last week that I have been asked weekly over the past few months.
"Should I be looking to sell my rental property?"
The question was motivated by fear. Will the market tank? Will interest rates keep climbing? Will Putin's war expand and thus impact our economy more? And there are a whole lot of other questions I've been hearing from others.
My answer? No. Or, at least, probably not.
Look, my crystal ball works about as well as yours. But here are some things to consider.
- A market that has peaked is very different than a market crashing.
- There is still a housing shortage. No ifs ands or buts about that. And, in my son's case, especially for two bedroom, 1 bath ranch homes in trendy Northeast Johnson County, Kansas.
- There doesn't yet appear to be a public will to demand more affordable housing be built.
- Interest rates are still historically low. Look at the trend line below.
- He has a 3.25% mortgage loan locked for another 24 years, he's 30 years old, and the rents are still up and I don't see them coming down.
Everyone's situation is different. I'm happy to discuss your particular situation on an individual basis. But unless you need cash now for some other investment or some other personal reason, I say HOLD, for a whole host of reasons.
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