Are you moving to a new house? That is excellent news! You can enjoy your new investment, move to a new neighbourhood and finally start anew. But what about your old home? Now that you have a brand new house, should you rent your previous home to tenants or sell it instead?
When it comes to real estate, it can be hard to decide as to which option will work best for you. It is beneficial to know the current market value of your home. Estate agents in South West London, for instance, can help you value your property, so you can decide if it is best to sell or rent it out instead.
Still finding it hard to decide? Then knowing the pros and cons of selling and renting can help.
Perks of renting your old home
If you can’t let go of your home since you have become too emotionally attached to it, then you can choose to rent it out. By doing this, you get to keep your home and have that passive income each month. If the house is also in an ideal location, then it allows you to take advantage of the equity appreciation. Another reason to rent is that these days, you will find it easier to find tenants than home buyers.
Drawbacks of renting it out
If you choose to rent it out, then you become a landlord. Not everyone can fit therole of a landlordsince it can be time-consuming and stressful. You may also need to pay extra not only for the maintenance but all the repairs as well.If you fail to find a good tenant, then you could be up for many financial issues.
Perks of home selling
By selling your old house, you can free up capital and use the extra money to add to your savings and even invest elsewhere.Also, once you sold your home, you are now free to walk away and not having to worry about the property’s depreciating value or the costly maintenance of the house.
Drawbacks of selling
Selling your home also has its drawbacks. For one, it can be harder to find a home buyer than a tenant. If your home is not in optimal condition, you may need to sell it as-is for a lower price or spend for renovations to attract more clients. If you choose to sell your home by yourself, you can end up needing more time and money just to sell it.
This list only goes to show that both selling and renting a house has its set of advantages and disadvantages. When deciding which path to take, consider your current needs and situations. If you don’t mind managing the property and you have plans to move back in after a year or two, then renting is a good option. But if you want to move on, need the money and don’t have the time and energy to be a landlord, then you may be better off selling the property.