Buying A Smaller Home To Meet Loan Repayments

Many people sell their home due to difficulties in meeting their required loan and interest payment commitments.

Before rushing out and selling your home it is always best to carefully examine all the options. Sometimes the home is too big so, even though you like living there, you may decide to sell-up and move to a smaller/cheaper property.

Alternative Solution: Renting out part of your home could be an option. Alternatively you could rent out the entire house and buy a smaller house to live in.

Pros: If local property values are on the rise it might pay to not sell your home right now. By renting your home out you might gain some tax benefits and be able to claim rental expenses.

Cons: Becoming a landlord takes some work and can have its problems. You will need to find good tenants and keep the property in good renting order. You may need to consult a tax advisor, carry liability insurance and you will be required to keep good financial records.