Selling My Unit or Rent It out??? Which One Would You Chose?
I've purchased a unit with 2 bedrooms at 275k 3 years ago in Adelaide.
Now, it is the time to move out as my second baby will be born next year.
But, it is not sure which one I need to chose between selling the unit or rent it out?
The current situation;
The remaining mortgage is 100k
Every month we pay 530 including principal + interst
Here are the comparisons;
- Selling out
The purchased price was 275k but, I think we paid a little bit high at that time.
It would be sold probably around 260k now or maximum 280k if I am lucky.
Since the remaining mortgage is 100k, I would get at least 140k (after paying all fees to real estate agent). I will be deposited to my bank account to get an interest.
- Renting out
The location is good so it would be rented it out quickly at 280-290 pw. The next unit is currently leased at 315k.
However, if it is leased, I need to think many things.
My salary is not high - 58k and I am the only income earner in my family.
So, if the income from rent occurs, it would be added to my taxable income, which will reduce the benefits from Center-link.
And after calculating all fees and maintenance costs, I would get nothing from leasing it (tenants would pay for my mortgage though).
It was build in 1958 but renovated in 2004. So, no depreciation can be applied for tax reduction.
What would you chose?