Leaving the US? Experts Explain Whether It’s a Good Financial Move To Keep or Sell Your House

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While the number of people moving out of the U.S. remains relatively small, interest in becoming an expat has been high for many Americans lately. A survey by HireAHelper found that 1 in 10 Americans thought about moving abroad last year, although under 0.5% did. 

Still, there can be several reasons to take the leap, such as to find a lower cost of living in retirement. But if you do move out of the country and own your home in the U.S., does it make financial sense to hang on to your property or sell it?

Unfortunately, as with so many things in personal finance, there’s no universal best answer. It depends on your circumstances and preferences. That said, here are some factors to consider as you decide what makes the most sense for you.

Reasons To Keep Your House

One of the main reasons to keep your house when moving abroad is if the math works in terms of rental prices outpacing mortgage and associated homeownership costs. 

“If renting out the property can easily cover the mortgage, then that could be a great financial tool, especially if they plan on moving back at some point in the future. They can continue to grow their equity in the home, while the home also increases in value, and hopefully make some extra income at the same time,” said Cody Horvat, licensed real estate broker at The Scott Group, a division of Compass.

But even if the rent doesn’t quite cover your homeownership costs, you might find that offsetting most of your expenses still works out in the long run. 

As Horvat mentioned, if you’re considering moving back at some point, then it might be worth paying down your mortgage so that you can retain that asset later on, rather than perhaps paying more down the road for a new home. Also, building up equity and holding on to property that you think will appreciate in value could make sense in certain situations, like if you want to leave an inheritance.  

“America has arguably been the best country to build your wealth as a homeowner. Even if we have some rough waters ahead of us, I still believe this country always finds a way to come out on top, so I would always recommend holding onto real estate in the U.S. when possible,” Horvat said.

That said, be sure to run full calculations and consider building in a maintenance buffer in addition to mortgage costs.

“They will have to keep in mind that the home is going to take on normal wear and tear from renters using the space, and there are costs associated with this. They may need to replace the home’s mechanicals or appliances sooner than if they left the home empty, so homeowners will need to weigh the pros and cons of renting out their space,” Horvat explained.

Reasons To Sell Your House

While keeping your house sometimes means coming out ahead financially, other times it can mean carrying an extra expense. Even if you no longer have a mortgage, there are lots of costs associated with holding on to your home.

“Homeowners leaving the country for a long time should consider selling if they don’t have the means to cover the expensive costs associated with renting. If you can’t rent your property, you are still on the hook with maintenance and taxes, without that monthly rent check,” said Gabe Abshire, founder and CEO of Move Concierge.

Plus, trying to manage your property abroad can be more hassle than it’s worth.

“Being a landlord is tough enough when you are local; when you live several time zones away, management becomes even more of a challenge,” Abshire explained.

Granted, there are all sorts of property management companies that can help you with the logistics, but that adds another cost, and it doesn’t guarantee that you’ll have renters.

“The risk is what happens if the home goes unoccupied for an extended amount of time. If that happens, the entire cost will fall to you, so be sure you have enough capital to cover all your bases if you don’t want to let go of your American home,” Abshire said.

Also, you might face unexpected costs and headaches from squatters if your home is unoccupied.

“If you are leaving your home unoccupied for more than a few weeks at a time, you should always make sure to have a security system with cameras in place,” Horvat said. “Depending on the local city and state laws, a squatter can establish residence in a home in as little as a month. Then the homeowner will have to go through court in order to evict the squatter, which can take easily upwards of six months.”

Altogether, you have to weigh the potential financial gains that can come from potentially renting out your home and building more equity against the costs and risks associated with being an expat landlord.

Sources

• HireAHelper, “The 2024-2025 HireAHelper Moving Migration Report.”
• Cody Horvat, The Scott Group
• Gabe Abshire, Move Concierge

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