Should I Sell My Flat or Rent it Out?

There are numerous causes for a homeowner to consider moving. Whatever the case, you still need to decide what to do with your current house. I understand that many questions might be coming to mind right now like whether should I sell my flat or rent it out. I would say you might be better off renting it out than selling it, or vice versa, depending on your financial circumstances and the state of the property market in your area.

However, if you are too confused about how to decide whether to rent out your home or sell it, I will tell you the perspectives of both.

There are advantages and disadvantages to both solutions, so the choice shouldn't be made lightly. Selling your home, for instance, can net you money right away, but renting will enable you to increase your equity as property values rise and generate income from your tenants. Examine the next situations to decide which course of action is best for you.

When to sell your home?

• Selling your current property is the wisest course of action if you need to access the money locked up in it in order to purchase a new one. In this manner, you can use the entire profit from the sale of your house to pay for your new down payment.

• It can be difficult and time-consuming to manage a rental property. Are you capable of performing some repairs yourself and handy? If not, do you have a list of reasonably priced contractors you can contact quickly? Think about if you want to hire a third party to handle things in place of taking on the additional responsibilities of being a landlord, which includes interviewing potential renters and handling issues, among other things.

• Over the past few years, property values have increased across the nation, and housing prices are still high. Selling your home can result in a sizable windfall for you, depending on how long you've owned it, how much you paid for it, and how quickly appreciation has been rising in your neighbourhood. Look at the surrounding comps to find out how much properties like yours have recently sold for.

• You might be eligible to deduct the capital gains from your taxes if you do sell your house for a profit. This only applies if the house was your primary residence for at least two of the previous five years.

When to rent your home?

• You might want to consider renting out your home if your relocation is only temporary and you want to move back to your existing city in the future. Some stability and peace of mind can come from knowing you'll have somewhere to live when you go back, and it might even be less expensive than selling your current house and buying a new one later.

• It can be challenging to refuse extra money! But, bear in mind that lenders will take rental income into account when calculating your financing if you decide to rent your present residence while also wanting to purchase another one with a mortgage. In some circumstances, a lender will only permit a portion of your rental income to be counted as an income source, often up to 75 per cent. Make sure you have the financial resources to take on this debt because you will also be carrying two mortgages at once.

• Is the area around your house hot and buzzing? Is it close to the top amenities in the area or in a highly coveted school district? Analyze the rental market in your neighbourhood; if it's simple and quick to locate a tenant, renting your house makes more sense and is less stressful. To find out how much other properties like yours are renting in your area, do some research on the real estate market. To discover more about the rental market in your area, you can also contact a nearby realtor or property management firm.

Now you have the answer to should I sell my flat or rent it out.