Do I rent or sell it? Make the best decision for yourself

Do I rent or sell it? Make the best decision for yourself

Haven’t you decided yet what to do with the inherited property? Not sure whether to sell or rent that house that you had available years ago when you moved? You still don’t know whether to turn your holiday home that you use very little by now into an income or a nest egg?

More often than not it happens that a property “immobilizes” its owner. The months pass quickly and it seems difficult to make a decision.

In reality, there are not many options available: I sell it, rent it or keep it empty. Each of these choices will affect your portfolio and your future. 

Then it is advisable to understand the market in which you are, analyze your projects for the future, calculate your financial needs, and put on the table the pros and cons of each solution to understand which choice is right for you and what are the actions to be taken. put in place to maximize your income or profit.

Learn more and continue reading, or take the test now to find out whether to sell or rent

Let’s proceed together with some analyzes:

WHICH MARKET ARE YOU IN? Have you had your real estate agent update the valuation of your property? Has it lost value or has it grown in value in recent years? What are the prospects for the future of that market?

These are all questions you need to ask yourself to understand what type of market your property is positioned in.

Depreciated property

The market in the last decade has suffered the effects of the real estate crisis causing a general decrease in values. Not all localities and not all types of properties reacted homogeneously.

The contexts of old construction in locations far from large inhabited centers, industrial centers, and universities are those that more than others have seen the greatest decline in transactions with direct consequences on valuations and obtainable prices.

Properties like these may be still gradually depreciating. 

Property revalued

On the other hand, properties that are located in areas of a certain interest and that have attractive characteristics are quite sought after both for leasing and purchase. They are not depreciating and you will be able to work hard to make an optimal profit or income.

  1. DOES YOUR PROPERTY REQUIRE OR WILL REQUIRE IMPORTANT MAINTENANCE SOON?

The need to carry out more or less important works on the property will soon put you in front of financial outlays. For example, you will not be able to fail to repair or replace the cover if there are significant infiltrations that can affect the health of your property. Just as you will not be able to ignore your garden that continues to grow and requires continuous maintenance and continuous expenses.

How much does the maintenance of your property cost you every year? Are the outgoings offset by a revaluation of the asset in terms of Money? To meet these expenses, do you necessarily have to obtain an income from your home?

  1. WHAT ARE YOUR FINANCIAL NEEDS? DO YOU HAVE ALREADY DEFINED PROJECTS?

Selling or renting is a decision that partly also depends on the projects you have in mind or on your financial needs.

You need to be clear about your plans to make the best decision. If you’ve always dreamed of moving house to have a little more space, selling is certainly the option that will help you make your dreams come true. If you already have a home and don’t have any important commitments or projects in mind, a monthly income can make your life more comfortable.

It happens that, if a property has been inherited, it is difficult to think of making it “liquid” with a sale because there is a whole area linked to affections and memories and on the other hand there is no convenience in the lease since I would divide the rent with other co-heirs. It seems like a difficult decision to make.

You will have to ask yourself: if I sell, do I already know how to use the proceeds? Do I need availability to develop my personal or family projects? Would it be convenient for me to set aside some savings for the future? I don’t need money right away, do I prefer a monthly income to supplement or to allow myself some travel or some other convenience?

  1. DO YOU GIVE THE RIGHT WEIGHT TO YOUR OBJECTIONS / RESISTANCES?

Often it is you who keep the foot on the brake, not make decisions, silently accept that your property hasn’t made you anything for years, and allow it to continue to depreciate even if only for age. Why does this happen? Because there is a very large area of ​​largely psychological resistances. Have you ever told yourself any of these things?

  • I don’t want to sell because I am emotionally attached
  • I could keep it for my children (maybe the house is already old and your children are still small !!)
  • What do I do with the money then? I have no clear plans
  • They told me that renting was a bad experience
  • I don’t want to talk about it with the other co-heirs

All credible and understandable, but the truth is that not making any decisions makes you lose money with each passing day! Your home is a major investment and you are not looking after it!

TAKE THE TEST

FIND OUT IF YOU SHOULD SELL OR RENT

 Answer these questions and add up the scores, below we will tell you if you should rent or sell.

 

YES

NO

WHAT MARKET ARE YOU IN?

Has your property depreciated in recent years? 1 2

Does the real estate market outlook foresee further price reductions? 1 2

WHAT MAINTENANCE DOES YOUR PROPERTY REQUIRE?

Does your property require constant maintenance? 2 1

Will your property require major extraordinary maintenance within the next 4 years? 2 1

WHAT ARE YOUR FUTURE PROJECTS?

Are you planning to buy another property? 2 1

Do you foresee major expenses for your family? 2 1

Could your home be used by a family member within the next 4 years? 1 2

Would a monthly rental income be enough to support your projects? 1 2

Add up the scores of your answers:

UP TO 10 POINTS: probably the best choice for you is the location

11 POINTS AND OVER: it would probably be more correct for you to sell.

 

If we have somehow helped you make a decision, now it’s up to you to take the first steps to go in that direction. Selling or renting a property is still a demanding choice that will involve you and your family and above all, it will require time and commitment. Both processes involve analysis, planning, preparation of the property, approach to the market, and management of negotiations. 

Get help from your trusted real estate agent, don’t stop right now …