We recently were asked to do a similar analysis for several clients. Here’s the customized notes for your situation. A candid note: If the reason for keeping a property is sentimental, and we perfectly understand, then most of this may not be relevant. If the intent is to make your assets work hardest & best for you, then this will be helpful.
The big idea: The average selling price in The Village comes to about $630K. The average lease comes to about $2,550.
How about this instead? Have a look at the chart below. I know it’s big, but what you’ll see is there is a way more efficient way of generating rental income. By selling your principal home for around $630K, and picking up TWO townhomes or condos, it might run you just a bit more, say an extra $100K, BUT YOU’LL GENERATE ALMOST $4,000 A MONTH! (By ratio & proportion, it’s like the same $630K earning $3,450/month, or an extra $1,000/mo over the average lease in the The Village – that’s an incredible 39.2% improvement on your rate of investment (ROI). What do you think?
(Just so you know, we do this calculation, and you can see how results are so different for everyone. In your case, it’s a significant improvement.)
Some more points to consider: Here’s a resource our families have found helpful.
Hope this gives you all some more thoughts to help you come to a decision that is best for YOU. Of course, be more than happy to answer any questions or provide any information. Enjoy 🙂