It seems like a no-brainer. Rent it out. Keep that once-in-a-lifetime interest rate, make some money on the rental, and don't accrue closing costs. I mean, is there really a question? Just hire a management company to deal with it while you're out of state.
Rule of thumb, do not liquidate assets unless you have to. Of course there are exceptions but based on what you’re saying, there is no reason for you to sell.
If it were me, I'd hang on to that 2.5% interest rate for dear life.
The job will pay for your property management expenses.
If you decide you want a new house when you get back and probably get even more for the house in 3-5 years.
I have not done the research myself yet, but I am told I will have to pay a lot in some sort of tax/gains if I sell it as a rental property and not my primary residence like it is now, this concerns me a little.
You'll have to pay taxes on your capital gains, which means you made capital gains. Even with taxes, you'll likely early way more than you're paying in interest for your low mortgage.
Second, if you plan to move back, here's what you do: move back for two years into that same house, then sell. You don't pay these taxes if it was your primary residence for 2 of the last 5 years.
Oh yeah, Capital Gains.
It depends on how long you're away and how much you profit from the sale.
If you were gone for 3 years, you would have lived in the home 2 of the last 5 years, so you wouldn't owe those taxes, if I remember correctly... but if you were away 4 or 5 years, you would owe taxes if you profit more than $250k.
Look up Captial Gains Taxes in property sales.
It seems like a no-brainer. Rent it out. Keep that once-in-a-lifetime interest rate, make some money on the rental, and don't accrue closing costs. I mean, is there really a question? Just hire a management company to deal with it while you're out of state.
Rule of thumb, do not liquidate assets unless you have to. Of course there are exceptions but based on what you’re saying, there is no reason for you to sell.
If it were me, I'd hang on to that 2.5% interest rate for dear life. The job will pay for your property management expenses. If you decide you want a new house when you get back and probably get even more for the house in 3-5 years.
I have not done the research myself yet, but I am told I will have to pay a lot in some sort of tax/gains if I sell it as a rental property and not my primary residence like it is now, this concerns me a little.
You'll have to pay taxes on your capital gains, which means you made capital gains. Even with taxes, you'll likely early way more than you're paying in interest for your low mortgage. Second, if you plan to move back, here's what you do: move back for two years into that same house, then sell. You don't pay these taxes if it was your primary residence for 2 of the last 5 years.
Oh yeah, Capital Gains. It depends on how long you're away and how much you profit from the sale. If you were gone for 3 years, you would have lived in the home 2 of the last 5 years, so you wouldn't owe those taxes, if I remember correctly... but if you were away 4 or 5 years, you would owe taxes if you profit more than $250k. Look up Captial Gains Taxes in property sales.