Should I sell my property or rent it out?
If you are moving away from London for a fixed period of time – or maybe forever – cashing in on the capital’s rising property values by selling your London home may seem like the ideal option.
Our busy lifestyles mean finding the time to manage a rental property may not be possible, but are you prepared to miss out on further rises in value of your London home – and miss out on rental income?
Here are the pros and cons of renting out a home.
Consider the overall property market to decide if selling would make sense in the long run. If property prices are likely to rise within the next few years, then it would be wise to hold onto your asset as its value will increase. If you sell your property, you’ll have your investment back, but you’ll probably get much less than if you were to wait.
The buy-to-let market
Buy-to-let properties are in high demand due to the increasing number of people who are struggling to get onto the property ladder.
Depending on your financial situation, renting out a property is a better solution as you’re guaranteed an income for every month that tenants inhabit your home.
Beware, however, that owning a rental property requires time and money, especially if there’s maintenance work required. You should be in regular contact with your tenants in case any issues need attending to. While this will add to your expenses, you will still be in profit from rental income and it’s perfect if you plan to spend time in another country or away from the area your rental property resides in.
When renting out a property, there isn’t a 100% guarantee that tenants will either pay their rent or that a landlord will not have to deal with void periods – times when the property is uninhabited.
A rental property is a marvellous long-term investment as it can be inherited by future generations and the option of remortgaging is always there. Tenants will provide you with extra income that will help to pay any outstanding mortgage payments and you can offset certain costs against tax.
The value of homes in the UK is still likely to increase over time, meaning you’ll get an even better return on your investment if you do decide to sell in years to come.
There’s also long-term security to contemplate. The income received from renting out a property can become your pension fund or saved for an alternate investment. You have the flexibility of managing your own investment, so should the occasion arise, you have a property which you could always make your future home.
Assetgrove’s rent guarantee scheme covers every fear a landlord might have about renting out a property.
Here at Assetgrove we can take the stress out of managing your property and can ensure you receive fixed monthly payments even if your property’s not rented out.
Assetgrove offers up to 5 years guaranteed rent and will manage every single aspect of the tenancy during this period – with no monthly fees, commissions or hidden surprises to pay for. This is much easier for landlords in comparison to other services, as it’s a contractual agreement between them and us, where we take care of everything – ensuring our landlords have complete peace of mind.
This innovative system means you’ll be protected against familiar risks associated with letting property and be able to effectively keep track of your cash flow.
For more information, contact Assetgrove today.