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A:

There are advantages and disadvantages in selling or renting a property..

RENT

Pros

Keep property as it appreciates

Tax-breaks could offset income tax on rent

Rent income covers mortgage, taxes and insurance payments

Cons

Possible damages to property

Could be taxed on the whole profit if you sell

Potential legal or financial problems with tenants

 

SELL

Pros

Likely tax-free capital gain

Frees up equity that could be invested or rolled into new home

Simplicity: Only one house to maintain

Cons

Could be priced out of market if you want to return

Lose potential property appreciation

Could have to sell at a bad time for real-estate market in your area

 

 
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