Did you know that 80% of homeowners say that buying or selling a house is stressful?
Owning a property can be a rewarding, but challenging, experience. When you own a house in the UK, there are lots of things to consider when deciding how to utilise it in the best possible way. One of these key considerations might be whether you should sell your property, or whether you should rent it.
There are lots of factors which go into a decision like this. Your personal circumstances, your financial situation, and the type of property you own, may all impact your decision. There are also advantages and drawbacks to both routes, and which one outweighs the other may vary according to where your priorities lie.
Advantages and Drawbacks of selling your house
There can be several advantages to selling your property if you choose to do so at the right moment. Firstly, if your property has increased in value since you first bought it, then this will enable you to collect a reasonable profit from the sale of the house. This money could prove invaluable when placing a deposit on a larger property, or it could be used for a number of other things, too, such as enjoying an early retirement.
Selling your house can also be advantageous if you are keen to move out of the area or are generally unhappy with your living arrangements. If you have negative memories of a particular area, and don’t want to associate with it anymore (e.g. by continuing to rent out a property there) then selling it can give you closure.
On the other hand, once you sell your property for a lump sum, this prevents you from being able to maintain a continuous source of income from it, which renting out the property could allow you to do. Selling your house also means that you cannot pass the property down to your children (if you have any) – and in the ever-increasing prices of the property market, keeping the property ‘in the family’ can be extremely valuable for your child’s future living arrangements.
Selling your tenanted property can also be very time-consuming and stressful, depending on the market conditions. If there are very few people looking to purchase a property in your area, you may be forced to reduce your price in order to make a sale. If you aren’t willing to compromise on price during difficult market conditions, then it may take a long time to sell your house, which could prove challenging in other ways.
Advantages and Drawbacks of renting your house
Renting your house comes with many advantages and disadvantages – all of which must be considered.
Firstly, renting out your property can provide an excellent source of income, while keeping the house ‘in the family’ for use further down the line. Not only does this give you a steady stream of money – which can be particularly valuable for people in retirement – but the house can still be passed to children or grandchildren in years to come.
Secondly, renting out your property also means that you have the ‘fall-back’ option of somewhere to stay if you fall onto difficult times (or are ‘in between’ another property sale). For example, if you are leaving the country for 6 months or a year, but still want a house to come back to at the end, then renting out your property (and asking someone else to take care of any issues) can give you additional income, without taking away your safety net.
On the other hand, renting out your property is no walk in the park, and you should consider all the challenges it provides before choosing this route. Firstly, there are ongoing costs associated with renting out your property which you must consider, such as repairs, refurbishments, and safety tests. These are time consuming and expensive, so if you are looking to reduce the stress and hassle in your life, then this may not be the best option.
Secondly, if you choose to rent out your property, then you must follow all your legal obligations as a landlord. Some of these can be complicated and learning about them all (and following them correctly) is a big challenge. You can be sued by your tenant if you do not meet all your responsibilities, and this is a major drawback of taking this route which many homeowners do not want to deal with.
Should I Sell Or Rent My House?
Whether you prefer to sell or rent your house will vary according to a number of factors.
Firstly, the stage of your life can have a significant impact on your decision. For example, if you are nearing retirement, then the idea of renting out your property can seem like too much hassle – especially if you are planning to go travelling. But on the other hand, selling your house prevents you from being able to ‘keep it in the family’ and give your children (if you have any) some assistant. These are all small considerations which will impact your decision.
Furthermore, the market conditions will play a part in your choice. If the property market is doing extremely well – especially in your area – at the time you make your choice, then the fantastic value you could get for your property may push you towards selling. On the other hand, poor market conditions may encourage you to wait a bit longer before cashing in on the house.
You should always speak to an independent property expert or financial planner before making a big decision like this. They will help you to weigh up all your options, and the factors influencing your choice, so you make an informed decision which suits your needs. At We Buy Any Home, we can help you decide with a free cash offer.