Real Estate Investment – To Sell or Not To Sell Your House
October 23, 2022
On the surface, choosing whether to sell your house or rent is a no-brainer. It’s a decision that many people have made. Some for short-term gain, others for long-term investment. But as with every decision in life, there are both positives and negatives associated with it. So before you jump into anything hasty, think about the following scenarios in https://www.sellmyhousecompany.com/:
Pros To Sell Your House
- If your house is worth less than what you originally bought it for, you may be better off selling it as you will get a better price than if you decided to rent or keep it.
- You can reinvest the money from the sale into another property.
- If you are moving to a different city or country, selling up will give you the cash to relocate without having to use all of your savings.
- If you have negative equity in the home, i.e. the loan on it is more than what you purchased it for, then selling up will be a viable way to pay it off.
- Renting out your house will lose money as you will need to factor in maintenance and mortgage repayments as well as any other utility costs (gas, electricity etc).
- There is a possibility that house prices could rise again, so if you do decide to rent out your house, it may not be worth more by the time you are ready to sell it.
- You get to avoid paying the property tax.
- You may feel freed from the stress of owning a house and this will help you in your financial life.
Cons To Sell Your House
- If you have already booked on flights to relocate, then it may not be worth renting out your house if that is the case as you would be losing money.
- You will need to find a tenant for your house and this can take time and effort. It can also be more expensive than just renting it out yourself (the agent’s fees, legal fees etc).
- You will lose the equity you have in your house. This is the amount that you bought the house for, not what it is worth currently.
- You will need to sell your furniture and other valuables as they will not be part of the transaction.
- If you rent out your house during a depression, then you may end up losing money as it would be harder to find a tenant at that time.