Whether you are leaving town for a significant amount of time or moving into a newly acquired second home for your family, you are probably considering selling or letting your property. This is a major life and financial decision that you want to carefully think through.
There are several aspects that you have to look into when weighing on whether you should sell or let your property. These include the following:
Selling your property can bring you a significant amount of money upfront. Letting your property, on the other hand, does have the potential of becoming a steady stream of monthly income for you. Both options seem to be promising when you look at them this way. But the truth is you have to do the math to see which one will really work for your advantage in the end. And by math, we mean subtracting the typical list of expenses that come with each.
Before listing your property for sale, you have to have the funds for the mortgage and remortgaging, energy performance certificates (EPCs), conveyancing fees, removal fees, high-street or online estate agent fees.
When you decide to let your property, however, some of these expenses become recurring as they become a part of the regular maintenance. In the UK, landlords are required to secure the EPCs, gas safety certificate, and smoke and carbon monoxide alarms for their rental properties. Plus, you will also have to deal with:
On top of all this, you also have to consider that there are periods of vacancy wherein you have no tenants and your letting property is generating no revenue for you. If you feel that these monthly expenses are too much, maybe selling your place is a better idea.
Researching and learning more about the current state and what the future holds for the real estate market in your location will greatly impact the way you decide on this matter. Generally, if you think that things are turning for the worse in the next couple of years, it is better to take advantage of the best rates and taxes today and get rid of the property now. On the contrary, if your research shows that better things are yet to come and the rates on selling and letting property are about to go even higher in the coming years, then maybe it’s a wiser strategy to hold off the sale and let your place for the meantime.
It is important to emphasize that all sales are final. If you are only relocating and can see yourself coming back in the years to come, then letting your property, instead of selling it, sounds more logical. As prices of real estate properties fluctuate, it may be cost-efficient to buy a new property at a more expensive rate when you come back.
Once you close the sale, you can kiss your home goodbye and forget about it already. Letting your property, on the other hand, involves due diligence and patience from you since you now have responsibilities to your tenants. You also have to constantly be updated about the latest government regulations on fees, taxes, and tenancy rules.
Not to mention you also have to handle the advertising and marketing of your property in the event of vacancies. Fortunately, letting a property can be more manageable nowadays, thanks to professional property management services and online estate agents that can do the job for you.
Are you interested in learning more about selling or letting your property? Kayabee can help with that. Get a free estimation and real estate advice from our best online estate agents. Please complete our online contact form on the website or give us a call on +44 203 291 1907.
