Owning a property is one of the most rewarding investment options you can become a part of, having something tangible that can appreciate in value and earn you a steady income is an attractive proposition to investors of all ages.
Ensuring a return on your property investment hower is by no means a given and it does take some work and research to find the best strategy for you. Some prefer to buy and flip over a few years while others opt for renting out for a monthly income
Each option has its own merits and caters to certain budgets and needs and both can be explored from time to time. Exploring your options and knowing the pros and cons of selling or renting is important in helping you make your decision.
Here are a few key considerations homeowners should consider when deciding to rent or sell.
Should you rent or sell?
Advantages of renting:
1. A temporary move
If the move you are looking to make hinges on personal or professional reasons, it may not be destined to be for the long term. Renting out your property allows you to maintain ownership of your property with the freedom to move back in, should the need arise.
2. Market changes
With the real estate market constantly changing, a homeowner can never be too sure that when they sell, they will achieve a premium price for their property. By renting out your property you can wait for the most opportune time to sell.
3. Sustain a long-term income
Retaining your property over the long term as a rental provides you as the owner with the opportunity to receive an income for as long as you lease the property. Over the years, you may also be able to gradually increase your rental price and maintain the flow of income.
Advantages of selling:
1. Immediate access to capital
Selling your property affords you the opportunity to have immediate access to capital when it becomes available. This liquidity enables you to purchase or rent almost immediately following the transaction, providing you with the option to invest some of your money.
2. You could move closer to where you need or want to be
Selling your property allows you to have access to sufficient capital for a down payment or deposit on a home you may be considering – in the area of your choice.
3. You have the freedom to choose a living situation that suits you
An influx of available capital means you are able to make a decision that is not limited or dictated by financial reasons. This expands your prospects, ensuring the option of a variety of living arrangements to suit your needs. The minimising or elimination of this critical factor opens up a host of living options that you may never have previously considered viable.
The decision is yours
As you can see there is a strong case for both options and depending on your situation and investment strategy either could work in your favour. If you are still unsure of investing in property and the financial burden it takes before you can see real returns, we recommend that you contact a financial advisor.
The decision you come to may be based on your personal needs, space requirements or a host of other factors unique to you. Take some time before making your decision and ensure that you will be content with all the possible outcomes.
If you do take the option of renting out your property make sure you have a sound rental agreement that has been looked over by a professional lawyer.