There are many reasons why you might find yourself in the position of having an additional property. Perhaps you have gained a property through inheritance, or are in a new cohabiting relationship. The decision to sell up or continue renting will often depend on your specific personal circumstances, but if you are debating which route to choose, here are a few points to consider.
Regular Income
Renting your property could, long term, lead to a regular income from a valuable asset. The rental amount should cover any mortgage and costs associated with maintaining the property, whilst providing you with some additional income. If there is no mortgage on the property, then the full rental fee will be available for you to use as you wish. This can provide a safety net should you become ill, or be made unexpectedly redundant from your job, or could be used to save money for a dream holiday, car or even a holiday home. If you have a family, the extra money could help fund your children’s extra-curricular activities.
Property for Family
Having another property available can also be very useful should family members need it in the future. Perhaps you have a child who is about to fly the nest, or an elderly family member who may need to relocate nearer to you. Retaining a property and renting it out means that you will always have the option to utilise the property should your family need it in the future.
Maximising Property Value
Property values are always fluctuating and it may be that now is not the right time to sell your property, even if it is your intention eventually. Letting your property means you can continue to keep an eye on the housing market and respond as and when it is the most lucrative time to do so. You could benefit from the long term capital growth on your property.
A Diverse Investment Strategy
Property has long been regarded as one of the less riskier investment assets as over the long term, it consistently brings in good returns. Holding rental properties as an investment allows you to create a portfolio which includes both safer and more riskier investments. A healthy investment portfolio tends to include a range of different assets and risk levels, so adding property to yours will give you a solid foundation from which to expand and grow your investments.
So, if you are thinking of renting your property rather than selling, the areas discussed above suggest that it could be a smart choice. The many benefits of renting such as regular income, minimising financial risk, broadening investment streams and having a security blanket are just a small amount of reasons why renting is a better decision for your spare property. However, becoming a landlord isn’t as easy as it sounds and there are a number of pitfalls if you aren’t aware of what to look out for.
At Paige & Petrook, we can offer friendly and impartial advice to help you decide whether or not to rent your property. We can also provide a no-obligation market valuation, so that you know exactly what to expect from your property should you decide to rent it out.
Get in contact with us today and find out how we can help.