Should you sell or rent your house if you need to more due to a change in job? There are of course pros and cons involved with both selling and renting a property, so in this article we’re exploring the key issues involved to help you answer the question of should you sell or rent your house.
Renting your house – the benefits
If you’re not yet ready to sell your home, your new job is only a limited time contract, or you think you might want to come back to it in the future, renting it out is an option worth exploring. Having tenants paying rent can bring in some extra income and, if you still have a mortgage on your property, it will help pay your monthly mortgage fee and maybe even leave you with some extra earnings on top.
If you need to move abroad, but don’t want to put all your furniture in storage, you can leave the essentials in your house for your rental tenants and save money on extra storage costs.
If you want to keep your home, but don’t want to leave it standing empty, then it can be reassuring to know tenants are in situ.
Renting your house – the downsides
If you’re going to go down the path of renting your house out to tenants, you first need to ensure that you can actually afford to do this. You’ll still need to acquire a new property, either via buying or renting, and you may still have an existing mortgage to pay out on your previous property. Any income you’re getting from renting out your old home needs to fully cover all your monthly expenses on both properties.
If you have a mortgage on your first property, you will need to ensure your mortgage company are happy for you to rent it out. Some mortgage lenders add small print on your mortgage agreement that limit whether it can be rented out or for how long. You may even find that you need to change your mortgage (for example, to a ‘buy to let’ mortgage) in order to do so, which might prove to be too much hassle.
You’ll also need to take into account all the fees and expenses incurred with becoming a landlord. You may have the bricks and mortar ready, but you’ll need to meet certain renting standards before you’re able to have tenants. Plus, you’ll face other added expenses, such as:
Property management fees
Landlord insurance costs
Property advertising fees
Property taxes
Long term repairs and maintenance
There’s also the risk that you might not be able to find suitable tenants and could lose money in the long-run.
Selling your house – the benefits
When you’re thinking about whether to sell or rent your house, it helps to run through all of the pros and cons. If money is an issue and you can’t afford to buy or rent elsewhere whilst still owning another property, then selling your house may make sense.
The obvious benefit of this approach is that you’ll eventually end up with a lump sum that you can put towards either renting a property elsewhere or buying another house. Selling your house releases the equity and you can use it elsewhere. It frees you from the bind of having to worry about your property and means you can move on to pastures new and start your new job and new life.
If you want to sell your house quickly, without having to wait around to find a suitable buyer – which can take time and be tricky if you need to move fast – using a reputable sell house quickly company, such as Molae Properties, will guarantee a quick sale. Plus, you won’t get tied up having to pay extra selling costs, plus they’ll be no legal fees to pay either.
Of course, there are some downsides to consider with every option. In the case of selling your house, there’s always the chance that your property may have made more if you hadn’t sold it quickly or had been able to hold on to it for longer. This could be affected by the property market, which may have grown if you’d waited and be able to sell later.
Selling your house – the downsides
If you choose to sell your house via a traditional estate agency, it can be a time-consuming and lengthy process. An estate agent may initially over-value your property, but you might not get that amount in the long run.
You won’t be able to benefit from any extra income that could be made by renting out your home. It’s also worth noting that if you property has negative equity, you may be required to pay it off when you sell.
As you can see, there’s a wide range of questions to ask yourself and issues to consider when you’re thinking about whether to sell or rent your property. Good luck with deciding on the right option for your needs and circumstances!
