Selling or renting a home Advantages and disadvantages
If you have an apartment that you own that you do not use, you have most likely wondered whether to sell or rent a home. It is a very frequent question among owners and there is no single answer, it will depend on what you need at the moment. But to help you make the decision, we bring you in today's article the benefits and drawbacks of selling and renting your home . Let's go there!
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Selling or renting a home: benefits and drawbacks
Why rent your apartment?
Putting your empty apartment for rent can be a great way to make a profit, especially if you plan to live there again in the future. Renting gives you the opportunity to save time, if you are not clear between renting or selling, you can try the first one to get a profit and in the future sell it.
In the long term, a rental can give you more benefit than the sale of a house, in addition, it allows you to have an extra monthly income that can help you pay a mortgage or other expenses. An advantage of this process is the savings in the costs of paperwork involved in selling a house.
- Monthly income , allows you to have an extra income to cover expenses of your apartment, save or pay the mortgage.
- You will remain the owner. You can return to your apartment if you get tired of renting your house, your children can inherit it and you can put it up for sale.
- Savings and earnings. On the one hand, you will save all the expenses involved in selling a house and on the other hand, you will be making money every month.
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What are the downsides?
Just as renting has many advantages, it also has its drawbacks. The main one is to deal with the tenants and the problems they can cause, from defaults to damages or conflicts with neighbors.
If you are lucky, a rental is a great success. They say that the best are the ones you don't know are there and that is the best option, tenants who pay all the fees and only contact you for specific and necessary things, without problems or damage. But finding some can be complicated, so a great option is to contact rental experts to help you find good tenants with creditworthiness.
If you decide to rent your apartment, it will be essential that you keep two things in mind: protect the house from squatters , since there is a greater risk when the property is empty and once you start having benefits with the rent you will have to notify the Tax Agency and pay the corresponding taxes.
Selling or renting a home: what are the advantages of selling your home?
Selling your house will allow you some advantages that renting will not offer you, such as getting liquidity faster or forgetting the expenses that come with owning a property, even if it is rented:
- Less problems on a day-to-day basis. Once you sell the house, you can forget about your worries: no tenants, no expenses, no maintenance.
- Liquidity at the moment. If you need money quickly, it is best to sell, although you can get more profitability from a rental, it takes years to get to that point.
- Property expenses. You can forget about expenses such as IBI, water and garbage rates and spills.
Disadvantages of selling
The main disadvantage is that you will no longer have a property, and that can help you in a difficult time when you need an extra income or need an apartment to live in. In addition, the selling expenses are high and you have to declare the profits of the property , so you will not enter the total sale price.
The sales process can be complicated, from looking for viable buyers to doing all the necessary paperwork. Therefore, it is best to have experts in the sector to help you throughout the process.