Selling or renting second home condo
I am a widow, 83 years old, with a second home in Az. My husband and I bought it in 2002 we spent approx 5 mos. of the year there. My husband passed away in 2010. I have continued to go these past 12 years but not for as long of a time. I would like to sell it. My children think I should rent it as an added income. If I would rent it, I would like to do it as a full time rental. What do you think would be the wisest choice? How would this affect my income re taxes. My total income is approximately 36,000 a year. (SS and IRA). Thank you
Terry Says
Well, this is a tough one. And a lot depends on how much money you have in savings and other liquid assets. Do you need the cash — or anticipate needing it in the next 10 years? If so, this would be a good time to sell — since there is still such high demand for properties. You don’t want to be forced to sell during a recessionary period.
And if you rent it, you are still responsible for upkeep– the roof, the water heater, air conditioning etc. At such a long distance it could become a real hassle. Will your kids be responsible for that??
Are they motivated for you to keep it because they eventually want to own it?
If the rent brings you over $91,000 in income it would increase your Medicare Part B premiums.
From my point of view, especially if you don’t feel like going back there, this is a perfect time to sell. But be careful with the money and just put it in the bank even at today’s low rates.
