* This article originally published in the February 2018 Midland Express
It’s fair to say the property market can feel like an obstacle course at times.
Everyone has their own bit of advice on real estate, but what is right for your situation may not suit the next person at all. Some key things to consider when tackling the decision of what to do with your existing property when the time comes to move on – should you sell it or rent it out.
Let’s not get emotional
Although difficult, it is critical to making smart and informed financial decisions. Be objective and try to understand why you are considering the options.
Downsizers whose family have left the home might want to keep the family home as it still hold great emotional attachments. Basing decisions about such a large asset can be dangerous territory and can lead to poor financial decisions.
Don’t rush it. Without prudent advice and a thorough understanding your individual financial situation, trying to sell quickly this may not be the right decision either.
Your Cash Flow
Holding on to an investment property could give your finances an injection in the future and present tax incentive, but consider your cashflow in meantime? If your investment is dependent on the projected rental income from the property, consider things like maintenance costs and upkeep, body corporate costs and council rates depending on the property or what if the property is vacant for a period of time for whatever reason. All these things could impact the viability and manageability of your investment.
Remind yourself why you purchased the home in the first place. Was it a home to live in long term or a financial decision based on market opportunities? If you have strong, reliable information to support the investment, the benefit of turning your home into a rental may outweigh the associated risks.
Are you more confused then ever? Here are our top considerations when deciding whether to rent or sell your existing property.
For more on real estate in Kyneton and surrounds, head to jenniferpearce.com.au