Real Estate

Would you rent it or sell it?

  • Last Updated:
  • Jan 26th, 2023 6:15 pm
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[OP]
Sr. Member
Mar 19, 2012
923 posts
225 upvotes

Would you rent it or sell it?

Hi everyone.

I need help/expertise on a subject I'm struggling seriously.

We have a house in Calgary NW and we don't know what to do whether to sell or rent it out. My partner wants to sell and with the remaining money we can buy a two bed flat (realtor(also friend) says he can find a town house and we can get between $1400-$1600 rent every month but obviously we will get less if we buy a flat.

We are leaving the country for 2 years(for work) and when we might not be able to buy a house like this. It is an 11 year old, 2500 sq house and on the ravine in a decent area.

We were approached by our friend whose staff is looking for a place but he can only pay up to $2500 (our realtor friend says we can get between $3000-$3300 a month and he will be managing tenant and all for a fee of course) and he says his staff can keep an eye on the house and we can leave our furniture etc. in the basement so we don't have to rent a storage which would cost us between $200-$250 a month.

Based on the above info. What would you guys do? What should I be considering if I want to sell or rent?

Thank you kindly.
14 replies
Deal Addict
Jan 5, 2018
1711 posts
1497 upvotes
rent 100%

never sell if you can manage it even without a tenant.
NOT A WOMAN. JUST GOT A WEIRD NAME. I AM A MAN. THANKS.
[OP]
Sr. Member
Mar 19, 2012
923 posts
225 upvotes
jenneth wrote: rent 100%

never sell if you can manage it even without a tenant.
Thank you. I forgot to add our interest is 2.95% variable. And it looks like it will increase again.
Deal Addict
Dec 19, 2009
1611 posts
2106 upvotes
Ottawa
krn905 wrote: How the hell do you have 2.95 variable in 2023? That's... impossible ?

What did you start at and when?
My guess is it was a typo...4.95% (or prime - 1.5%) (before today's 0.25 hike).
[OP]
Sr. Member
Mar 19, 2012
923 posts
225 upvotes
krn905 wrote: How the hell do you have 2.95 variable in 2023? That's... impossible ?

What did you start at and when?
Yeap 2.95 variable. We purchased our home in 2016 December.
Deal Addict
Dec 19, 2009
1611 posts
2106 upvotes
Ottawa
Cocoon wrote: Yeap 2.95 variable. We purchased our home in 2016 December.
I think you mean fixed.
There’s no way you have prime - 3.75%. It means you would have had a negative mortgage rate for a while when the prime rate was below 3%. The bank was paying you! Face With Tears Of Joy
Sr. Member
Oct 14, 2010
721 posts
800 upvotes
Toronto
Cocoon wrote: Yeap 2.95 variable. We purchased our home in 2016 December.
Hilarious Face With Tears Of JoyFace With Tears Of JoyFace With Tears Of Joy
Deal Addict
Apr 29, 2010
1470 posts
2909 upvotes
GTA
If nobody ever sold their homes then houses would only ever go straight up

Don’t be a Rainbow Bear Face. Never sell
Deal Addict
Jan 5, 2018
1711 posts
1497 upvotes
budwizestest wrote: Hilarious Face With Tears Of JoyFace With Tears Of JoyFace With Tears Of Joy
here we got tens of thousands of buyers looking at closing precon at 6% but here is a dude wondering if he should sell because rates are going up...to 3%.
Grinning Face With Smiling Eyes
NOT A WOMAN. JUST GOT A WEIRD NAME. I AM A MAN. THANKS.
Deal Addict
User avatar
Apr 30, 2021
2269 posts
2886 upvotes
Rural Kanata
krn905 wrote: Dude prolly hasn't looked to notice his variable is at like 6.95% Flushed Face
Most people don’t even know rates went up. At 3% would not have hit trigger yet.
Deal Addict
User avatar
Jul 25, 2015
2025 posts
1756 upvotes
Burnaby, BC
Trolling...OP? Having a mortgage and not knowing the rate? Can't fool RFD experts kiddo...
Member
May 27, 2007
249 posts
73 upvotes
Vaughan
I'd say rent it out if you can. I personally would pick someone known (through a friend) over finding a new tenant. Assuming your agent finds a tenant for $3,000, he will likely charge you 8% (assuming) for managing the property. After fees, you will net $ 2760. $260 pre-tax is not a big deal in the grand scheme of things if you know the person moving in has a solid reference and can take good care of the place. Even if you end up going with your realtor friend, ensure you vet the tenant on your own. Nothing is worse than worrying about the property back home when you are abroad. Good luck!

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