It wasn’t that long ago that it was completely inconceivable to travel full-time, but things have changed. Young professionals with remote jobs, retirees, and even young families can be found all over the world living a nomadic lifestyle. If you don’t have anything physically tying you to your home city, it could be as simple as packing a bag and leaving, but it’s a bit more complicated if you own a home.
The Case for Selling Your Home
One compelling reason to sell your home before you travel is the amount of capital it can free up. The sale could potentially fund many years of globetrotting around the world, covering not only travel and accommodation expenses but also any unexpected emergencies. This lump sum could give you financial security without depending on a regular income during your travels.
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Selling also liberates you from long-term responsibilities associated with homeownership. You won’t have to worry about property maintenance or stress over managing repairs. There’ll be no more midnight calls about plumbing issues or concerns over roofing or garden maintenance while you’re trying to enjoy your journey.
Another reason to sell is that the process has become much simpler. In the same way that technology has allowed for this very new kind of lifestyle, it has made selling a property more efficient. If you had wanted to sell a house fast in the past, you were reliant on a lot of luck. That has changed today, and now there are online platforms that can give you a quote within 24 hours and then complete the purchase within seven working days. The days of a long, drawn-out sales process are no longer needed.
The Case for Renting Out Your Home
On the other hand, there are a few reasons why renting your home instead of selling it makes more sense. Firstly, having a steady rental income might be more appealing to you than the lump sum from a sale. As an example, many parts of the UK have rental yields in the 5% range. This means that if you own a £200,000 house, you might expect about £10,000 per year in rent.
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There’s also the option of renting your property out to short-term tenants instead of full-time ones. Maybe you’d like to have a base to return to whenever you come home, or maybe you don’t want to make the big decision of selling until you’ve lived the new lifestyle for a while and you’re sure it’s what you want.
Renting out your property could even potentially offer tax benefits. For example, in the UK, landlords can deduct expenses like wear-and-tear costs or letting agency fees from their taxable income. This will highly depend on each homeowner’s individual situation, so it is important to weigh up all the different scenarios.
There are advantages to taking either approach and it really just comes down to what you value the most. Selling may be the best option for those who want to be completely free from obligation while renting allows you to have a bit of security and a backup plan if you decide that full-time travel is not for you.
