Sell your property or rent it out?

If you’re turning the page to a new real estate chapter, one of the big questions people often consider is should I sell my current property to buy a new place or keep it and rent it out?

The answer, of course, depends on your circumstances, but here’s a few pros and cons of each scenario to bear in mind…

Sell your current property

Some places make ideal rental properties, but others aren’t quite so suited to it or perhaps it’s a family home with precious memories that you’d rather not see rental occupiers reside in.

If your property is a high-maintenance home, you might opt to sell rather than rent.

Depending on your circumstances, selling might also free up additional equity that allows you to upsize to a larger home.

There are also times in life when selling might simply make more financial sense, allowing you to downsize your property and enjoy the additional funds that are left over from the sale of your previous residence.  

Rent out your current property

Depending on your financial situation, renting out your current property might allow you to earn additional income, or it could help minimise your tax through negative gearing.

That said, it’s important to remember, renting out a property often involves expenses in addition to income, such as maintenance and repairs, council rates, and mortgage payments.

It might also make sense to hold onto a property if there’s a chance you might return to it later.

For example, that unit in a city might be ideal when your children go to university, or it could provide the perfect CBD pad to complement your tree-change property in a new location.

Questions to ask yourself

As we mentioned, deciding whether to retain the property and rent it out or sell it involves weighing up the pros and cons and deciding what’s right for you.

But questions to ask yourself include:

• Which situation makes better financial sense for me?
• What is my ultimate real estate goal – is it to build a property portfolio, downsize, upsize etc?
• What are the taxation implications?
• Which scenario best suits my lifestyle?

Get some advice

As with all major decisions, it’s prudent to seek the right advice before rushing to judgement.

Exerts to consult include:

• A trusted real estate agent for a sales and rental appraisal of your current property
• A financial advisor to assess your individual circumstances
• A mortgage broker or lender to map out each scenario and how it affects your ability to purchase elsewhere

We’re here to help

If you’re considering renting out your property or selling it, we’re here to assist with expert property managers and sales agents who can give you an insight into the value of your property when it comes to sale or rental.

You can chat directly with one of our friendly Eview agents on 1300 438 439.