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My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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Bubble Anxiety Has Homeowners Debating: Time to Sell or to Rent?





By the end of the day, it all comes down to the expectation for house price appreciation, which is hard to guess.

From Wall Street Journal:

Deciding whether to sell a home you no longer plan to live in, or hold on to it as an investment property, has become more of a conundrum in the last several years as homeowners have seen values soar. The average U.S. home price jumped 11% in 2004, according to the Office of Federal Housing Enterprise Oversight's house-price index; compare that to returns of 9% for the S&P 500 and 7.7% for long-term bonds.

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The situation often arises when homeowners are either relocating to work elsewhere or retiring and moving elsewhere. Whether it makes more sense to sell a home or turn it into an investment property depends on a number of factors, including the strength of your local rental market, the state of your finances and your willingness to shoulder the burdens that come with being a landlord. In this column, I'll walk homeowners through the decision-making process.

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