Whether you’re relocating for work reasons or you’ve found your dream home in a suburb you’ve always wished to live in, deciding whether you should sell or rent out your house can cause a lot of headaches. There is no right or wrong answer to this question and no one can answer it for you. But to help you make your decision here are a few questions to ask yourself from iThink Sales Agent Dane Phillips.
WHAT CAN YOU AFFORD?
It’s time to think with your head. If you’ve bought elsewhere, you’ll need to keep in mind you now have two mortgages. Consider your cash flow and do some sums to figure out if the rental payments will cover your mortgage plus other expenses. When you rent out your property, you need to consider other costs such as management fees, landlords insurance and maintenance costs. The best thing to do is write it all out in a budget format. Take note of what comes in and out of your account and see how much flexibility you have.
WHERE ARE THE PRICES HEADING?
Do your research and look at where your property prices are heading. While there are no guarantees when predicting property price movements, you can usually get a good indication of what to expect. Take note of price peaks and if your suburb is nearing or is currently sitting in a price peak, now might be the time to sell.
IS THERE RENTAL DEMAND?
While your researching on property prices it’s a good idea to take a look at the rental demand in your suburb. If you decide to rent out your property, you will need a tenant and you’ll want one quick. If rental demand is low and vacancy rates high in the area, that is not a good sign and could cause a lot of financial and emotional stress.
CAN YOU EMOTIONALLY DETACH YOURSELF FROM THE PROPERTY?
When you’re an investor you need to keep the emotions out of the property otherwise costly mistakes can be made. The property is primarily there for financial benefit; it shouldn’t be a dream home. While it can be emotionally challenging to let go of your family home, it can be equally, if not more difficult to see a tenant living there and not treating it as you would. If you’re thinking of coming back to your property and are okay with the thought of someone else living there, then sitting on the property and renting it out might be the strategy for you. But if you’ll have significant emotional difficulties seeing a stranger in your home, it’s time to detach and sell.
SEEK ADVICE & STICK WITH YOUR GUT
After you’ve asked yourself the above questions, it’s a good idea to seek some advice from a professional. Talk to a real estate agent or property manager to discuss your options and get their opinion. Once you’ve done all your research the last thing for you to do is trust your gut! Go with what feels right and is financially sensible.
DANE PHILLIPS – SALES & MARKETING CONSULTANT
0435 839 033
A career athlete with a passion for property, Dane is that agent you want on your team. Driven and dedicated with a desire to succeed in everything he does, Dane offers unprecedented commitment and advice to anyone looking to buy, sell or invest.