How to decide whether to sell or rent your house
Navigating the property market can be a difficult task, especially if this if your first time dealing with this competitive and often confusing market. One big decision that you may be confronted with is deciding whether you should sell your home, or simply rent it out. It is an incredibly big decision to make and the decision you make will ultimately come down to your personal circumstances and what are potentially planning to do in the future. In this article, we will run you through the options to rent or sell and navigate you through the advantages and disadvantages of both.
Why should I sell my house now?
Since the pandemic hit, the property market has made a big come back, and property prices are on the rise in almost all areas of the UK. This means that it is a great time to sell if you are considering this. According to the Office of National Statistics, annual property prices growth in the UK hit 8.9% in April.
The advantages of selling your home
There are many advantages of selling your home. You could release equity to buy your next property, and any money you spend to add value to your home will not be lost in capital gains tax. In a rising market, chances are that you would get a good price for your home.
The disadvantages of selling your home
There are of course also several drawbacks to selling your home. For instance, you could be selling an asset that will grow in value over time. Selling a home also takes time and if you are in a long chain, then there are risks. On the converse to the advantages, in a falling market, you could lost money.
The advantages of renting your home
In terms of renting, if means that you may be able to move quicker, as opposed to if you chose to sell your home. Good tenants will also pay on time and look after properties. This option also means you could make an additional income and enjoy capital growth in your property for the future.
The disadvantages of renting your home
The disadvantages of renting your home include the fact that you will have to stay up to date and compliant with constantly changing lettings legislation unless you use a managing agent to take care of this for you. In addition, you may find that your home requires more maintenance if your tenant does not look after your property. Finally, you will be taking on additional debt if you keep your property and buy a new home.
If you think renting is better than selling
In the case that you decide to rent out your property rather than selling it, you should find out whether renting is even an option. You will have to seek approval from your mortgage lender if you wish to rent your out. If this goes smoothly, then your mortgage will be changed to a buy-to-let load. Bear in mind that you may be additional costs when switching your mortgage from a residential to a buy-to-let loan.
Overall, there are many points to consider, and if you are looking for further advice, get in touch with our friendly team at FastCash4Houses.
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