There’s a lot to be said for both routes so, ultimately, it comes down to your personal priorities.
Sell, sell, sell!
The case for: If you’re looking to buy a new property, as opposed to renting your next home, selling your current house means you can use any equity to put towards a deposit.
A hefty deposit will ensure more favourable terms on your next mortgage, leaving more money for fun things – like redecorating your new place or installing a hot tub!
The case against: The process of selling incurs fees to solicitors and estate agents. That’s before you factor in the décor overhaul and buying fresh flowers and coffee every week to seduce buyers.
If you don’t need to get your hands on the equity, you may want to save on the expense of selling until a later date, thereby halving the cost of moving right now.
Become a landlord
The case for: If your move may be temporary and you might want to return to your home, renting it out is the perfect way to keep that option open. So if your plan to relocate to a yurt in Timbuktu or live in a glass bungalow in Basingstoke doesn’t work out, you’ll have somewhere to come home to.
There are tax deductions available for landlords. These cover expenses such as buildings and contents insurance, repainting and replacing damaged furniture.
If you can hold on to the property for as long as possible, more of the mortgage will have been paid off when you eventually sell.
You can also choose your moment and wait until the market is strong to make sure you get the best price for it. Think of it as your nest egg.
The case against: Becoming a landlord comes with responsibilities. The buck stops with you to ensure the property is maintained, repairs carried out and the rent paid.
Even if you choose to have an agency look after it for you, you’ll need to factor in their fees.
You will need to pay tax on any rental income and deal with the accompanying paperwork. You’ll also need to be up to speed with all the legal issues associated with being a landlord – though here at s1homes we’re always on hand to offer guidance.
With s1homes you can advertise your property to rent or for sale so why don’t take a look at our fares while you weigh up the pros and the cons?
A clear picture on the positives and negatives sides of selling and renting out a property. It helps the buyer to decide accordingly and take the necessary steps.