When you move home, the decision of what to do with your existing property is a very important one. Most people find that they have to sell their current property, especially if extra money is needed to buy a new one. However, what is the best decision for you – selling or letting?
Benefits of selling
- Access to instant cash is the main benefit of selling and means that you can buy a new property with far more money than you would have if you decide to let your old property
- If prices are decreasing in the property market and you want to extract the best possible price for your home, then selling is also advised
Cons of selling
- Owning and therefore renting a number of properties gives you extra security in the future and is a fantastic asset to have
- You may later regret your decision, if for example you bought a new home with a partner and things don’t go to plan
Benefits of letting
- If you are moving temporarily, then letting out your old property gives you the option of still being able to move back into your old house
- If you are confident that your property is a good rental property, then over time you can create a valuable asset with a regular income
- If prices in the property market rise, then you will be able to sell your old property in the future for profit
Cons of lettings
- Owning multiple properties can bring complications if mortgages are involved. You must check your mortgage as some do not let you rent out your house. If you do have to change your mortgage to allow for letting, you will have to consider new mortgage fees.
- Letting an old property and owning a new property means you will be financing two properties. You need to ensure that you are financially secure – will you be able to pay for two mortgages?
- There will be periods where no-one is in the property and therefore you will not be receiving any money
- Managing a property takes a lot of time and responsibility. You can instruct a letting agent to do this for you, but they will take part of the rental income.
It’s your decision
There are a number of advantages and disadvantages when it comes to selling or letting a property and you need to make the decision based on you and you only. The first step is to decide whether you can afford it. As well as the house itself, there are also a number of other costs associated with letting a property. You also need to remember how time-consuming being a landlord can be.
However, the benefits of extra revenue earned from any rental properties cannot be denied. If you are unsure about what to do and would like to speak to an expert, please get in touch today.