Rather than selling it, retaining your current home and utilizing it as an income property can be a lucrative venture. However, this type of investment won’t necessarily be the right fit for every homeowner. 

In this blog post, we’ll look at the prospect of keeping your current home as opposed to selling it, weighing the various advantages against the potential drawbacks to help you determine if this option suits your financial goals. 

Preparing to downsize your home? Click here for refined insights on adjusting to condo life as a downsizer

Why Should You Consider Keeping Your Current Home?

Real estate is an incredible investment asset. Especially in Toronto, a market where inventory shortages and other factors have greatly amplified demand for both permanent and rental housing. 

From a return on investment perspective, the benefits of retaining your existing home rather than selling it are twofold. 

In the immediate term, moving out of your home gives you the opportunity to convert it into an income-generating property. Given the red-hot nature of Toronto’s rental market, this can be a lucrative venture on its own. You can then use these funds earned to pay off the mortgage on your next home, allocate funds for retirement, expand your investment portfolio, and more. 

In addition to the short-term returns earned through rental income, holding onto your property allows you to further build upon its equity as it appreciates in value. Your home has already gone up in value since the time you purchased it, and the longer you hold onto it, the more profitable your future sale may be. 

Considering a foray into the world of real estate investment? Explore these introductory resources from our blog.

When Selling is the Best Option

While keeping your current home can be advantageous, it is not always the right fit for every homeowner. Depending on your personal circumstances, it may be best to sell. 

One of the main reasons someone may elect to sell is to utilize the equity they’ve built in their current home towards the purchase of their next one. Many homeowners may not have the financial resources needed to buy a second property without selling the one they already live in. 

Another instance where keeping your current home may not suit your goals is if you’re relocating or moving to an area that is far away from it. Although managing an investment property is not a full-time job, it can be more difficult from a distance. 

Converting Your Home Strategically

After you’ve moved into your next home, turning your current home into a profitable investment property will require some strategy. In some cases, maximizing your home’s profit potential may only require a few small upgrades, or it could involve a more formal renovation. 

If you’re thinking about converting your current home into an income-generating rental property, the best place to start is by reaching out to our team. As real estate professionals who specialize in supporting investors – and landlords ourselves, we have the unique insights and expertise to guide you toward the highest possible return on your investment. Beginning with an analysis of your current home, along with your short and long-term financial goals, we’ll help you determine which conversion type is best for you. 

Thinking about selling your Toronto home? Explore these other blogs from our website for helpful information on optimizing your sale. 

Working With Ramsay Group

Guidance For Investors 

Combining our local real estate knowledge and 15-plus years of experience in construction and project management, 

Beyond simply getting your property market-ready, our specialized guidance ensures you’re equipped for a successful investment today and tomorrow. Whether you need help with finding the right tenants, navigating local regulations, or other elements of property management, we’re here for you. 

Amplifying Your Sale

If converting your current home into an investment property isn’t the right pathway for you, we can help you sell it smoothly, and for a great price. 

Our approach to selling your home is truly full-service. Managing all aspects of your sale from start to finish, we allow you to focus your attention on what matters most – while providing peace of mind that you’ll accomplish a great result.  

Thinking about selling or converting your home into an investment property? Ramsay Group can help. Click here to contact us by email or call 416.906.8366 to get started.

Stay up-to-date with Toronto real estate.

Get insider information delivered directly to your inbox.