If you are thinking of moving home you have probably asked yourself the question, ‘Should I sell up or keep hold of my property and rent it out?’ It’s a dilemma that many property owners face, and the decision is not an easy one to come by.
Making the right choice for you is essential. There is no definite ‘yes or no’ answer to this question, it really all comes down to your own personal situation and preferences.
However, there are a few things that you can ask yourself that may make working out where you stand a little easier, and we are going to take a look at some of them right here.
Do you need the profits from your home in order to move up the ladder?
One of the first questions you must ask yourself is whether or not the equity tied up in your current home is going to be needed for your next move. Obviously, if the answer is a resounding ‘Yes’, then selling is really your only option.
On the other hand, if you do not need all of the equity, you be able to acquire a home equity loan or refinance in order to make the down payment on your new property.
Are you moving because you want to or for work reasons?
We mentioned work reasons, but there could be any number of factors that initiate a move. The main thing to ask yourself is if the move is going to be a permanent one or not. While that job transfer may seem like the right way to go now, further down the line you may want to return to your roots. Knowing why you are making the move will help you decide whether or not you should keep hold of your property.
What is the rental market like in your area?
Knowing the property rental market is an essential element that will help you make the right decision. If you’re current property cannot pull in enough in rent to cover your mortgage and expenses you are going to need to take a serious look at how much you can afford to put into yourself to cover the shortfall. Bear in mind too that you may incur periods where the property is left empty and you will have to cover all of the costs.
What is the For Sale market like in your area?
If you can afford to take on any shortfalls and you have a fair idea that the property market is going to rise for the foreseeable future, renting the property out will look more attractive. Analyse what has happened in past and research what kind of growth there has been locally. This will give you an idea of whether you will see a profit on top of all of the expenses you will incur whilst renting out your property.
Can you remain calm in a catastrophe?
Our final point may seem like a flippant one, but many people who choose to place properties to let simply aren’t suited to the ups and downs of becoming a landlord. Remember, someone else is going to living in your home and accidents can happen. Will you lose your mind if someone scratches your solid oak flooring? If the answer is yes to this or any other similar scenario, you’re probably better off selling up and moving on.
There you have it, five points to keep in mind if you’re thinking about whether to sell or to let. While this may not be a comprehensive list, it will give you a healthy foundation upon which to base your decision – whichever way you decide to go.