Sometimes you decide when you want to change homes; other times life forces us to do it, whether your business changes your city, a family emergency or you found the love of your life. This is where the question arises as to whether it is better to rent or sell your property. So here we leave you 5 aspects to consider so you can make the right decision.
- Will you leave forever?
If there is a great possibility that you will return in one or two years it will probably be more convenient for you to rent your house or apartment since you will have to invest time and money in selling and buying another house.
- How is the rental market currently behaving?
Does some research on real estate search engines about properties with similar conditions in your area? Is there a lot of offer? Consider the repairs or improvements you will have to make to reach the level of the other properties in your neighbourhood. This way you can determine if that additional income will cover your needs.
- What is the trend of housing in your neighbourhood?
There are many external things that affect the price of your property, from national trends, surrounding buildings such as shopping centres, schools, corporate, etc. Consider home extension builder as they can affect the price of your house or department and you can get more money in the long term instead of selling it at this time.
- How complicated is it to be a landlord?
There are companies that are dedicated to managing real estate, so if you are willing to pay 10% of the rent (approximately) for this service, there is nothing to worry about, otherwise consider that you will have to deal with emergencies, possible problems with late payments, etc. Think well if it is worth this stress in your life.
- What can be the implications for the Ministry of Finance?
Come to your accountant to find out how you can handle this situation and what taxes you will have to pay in case you put your property on rent.
As with so many important decisions in life, there is no easy answer for this. The rental of a house or sale offers advantages and disadvantages that you must weigh carefully before making a decision.
Evaluates the current market conditions. Before deciding which path to take, consider the situation in the area where your property is located. Determine the demand for rental properties like yours in the neighbourhood. Through a comparative market analysis, determine the value of existing homes in your neighbourhood and the price of similar properties rented in the last six months. You can search the Internet or ask a real estate professional to help you.
If the values of the properties of the neighbourhood are increasing, you may want to keep yours to give you time to evaluate their price. If the costs are decreasing, and you still get a profit, you may prefer to sell and take advantage of the profits before the market declines.
Consider how much you could get if you sold the property today, assuming you would lose about 10 percent in agent’s fees, closing costs and other selling expenses. If you are not satisfied with the current value of your home, renting it can provide some income while you wait for it to increase in value.
The local home extension builder is a good option if there is a possibility that you wish to return to live in your home at some time in the future. Lease income can cover most of the expenses that must be made, such as mortgage, taxes and insurance payments. This is a great way to accumulate wealth because at some point the property will be paid for the tenant’s income and you will have collected money for your retirement.
However, the rent implies additional responsibilities, such as the additional expenses that you must pay if the tenants are late with their payments. Another important drawback of renting versus selling is the cost of possible damage to your property caused by the occupant. Sometimes you may have to evict a tenant.