There are many reasons why you may have a property that you don’t live in or need anymore. Maybe you’ve moved in with a partner or moved away for work, whatever the reason, there are options when it comes to your property. At the moment, with property prices at an all-time high, it may seem like the best time to sell and get the most for your money. But if your situation isn’t permanent, and you feel like hanging on to your property, then renting could be the ideal option for you.
Ultimately it comes down to your personal preference, but to help guide you, we’ve put together some pros and cons for both selling and renting.
Selling – The pros
One of the main reasons for those looking to sell a property is because they are looking to purchase a new one, so financially it makes the most sense to sell as any equity can be used towards the new home. Whether that’s in the form of a deposit or to renovate it. Also, obtaining a second mortgage can be difficult for some.
If you’re moving into a new place that someone else owns, possibly moving in with a new partner or moving into rented accommodation for work purposes, it might make financial sense for you to sell your property and pocket the profit. Having a property that you own, but don’t live in, can become a financial burden over time if not properly managed, so if this feels like something you couldn’t manage or would cause extra stress in your life, then selling is your best option. Currently, the property market has had a huge boost brought on from pent up demand during lockdown and buyers are snapping up homes quickly and at much higher prices. That extra profit could give your savings a much-needed boost, help you cover your moving costs or treat you to that well deserved holiday we’ve all been dreaming of.
Selling – The cons
Whatever the reason you decide to sell your property, the process, and costs, are still the same. Costs include estate agent and solicitors’ fees, surveys and movers, which are all pretty standard. You can save money on some of these areas, for example, by using online only estate agents that generally charge a lot less, but average selling fees are about 1-2% of the full property selling price. Solicitors’ fees can also range from £500 – £1,500 depending on the level of service they provide and the nature of your sale. In Scotland, you are also legally obliged to have a home report carried out on your property before selling, which some estate agents will include in their overall costs. This of course is all separate from any additional surveys you may need to be carried out on your home and any repairs you need to have carried out that the home report has highlighted. Dealing with any minor issue may save you in the long run to help that report, and your property, shine.
Outside the standard selling and marketing costs, you may need to give your property a mini makeover depending on the style of décor you have. Most buyers can find the potential in any property, no matter what the décor, but natural colours and a blank canvas might help some viewers imagine themselves living there a bit easier.
Renting – The pros
If your move is temporary and you’re planning on returning to your home, then renting it out is the perfect way to keep that option open. Even if you’re planning on being away for years, no matter what happens and if your plans change, you’ll have somewhere to come home to. Luckily there are tax deductions available for landlords such as cover for expenses like buildings and contents insurance, repainting and replacing damaged furniture. It should also become an extra source of income for you which can be used towards repaying the mortgage sooner or topping up your savings. Although it’s a sellers’ market at the moment, if you’re not ready to sell then you’re in control of if, and when, you choose to sell in the future. It also gives you peace of mind whilst you’re away knowing that the property is being looked after.
If you do choose to rent, you can do this easily with s1homes, reaching hundreds of thousands of Scottish renters every month. Simply visit www.s1homes.com/rent/post/ for all the details.
Managing a rental property and becoming a landlord comes with a lot of responsibilities and the level of management you provide depends on the time and money you’re able to spare.
Renting – The cons
If you choose to rent and become a landlord, it’s your responsibility to make sure it’s up to code, suitable for the rental market, that it is properly maintained, insured and that repairs are carried out on time. Even if you choose to have an agency look after it for you, you’ll need to factor in their fees and consider this when looking at your expected profits.
You will need to pay tax on any rental income and deal with the accompanying paperwork which can be very time-consuming. You’ll also need to be up to speed with all the legal issues associated with being a landlord – again, this can take up a lot of time and legislation can change over time, and you don’t want to be caught out.
Whatever you decide, you can advertise your property to rent or for sale at s1homes.com so why don’t you take a look at our costs while you weigh up the pros and the cons?