In the immortal words of the clash, "should I keep it or should I sell" is a phrase that has applied to both property owners and investors more than it was initially intended to? With the economy in the current state, you don't want to be the one to make the wrong financial step you'll end up regretting through your life. So, here are a few things to keep in mind when you're considering what to do with the most important assets you can control.
Table of Contents - Should You Sell Or Renovate A Rental Property?
Why are you doing this?
Why is an essential factor, has your life changed in some significant way that now leaves you with too much or too little space? Or perhaps you need a change in scenery? Can your requirements easily be renovated into the home? If so at what cost? These are some of the basic points to ponder over before making this decision.
The cash factor
Cash might not be a coined term, but it is one that defines when and why we do most of the things in our lives. Now when considering costs, don't forget to factor in a few extras to cost of simply buying another property, selling and moving to take time and money as well. Renovating, while it might turn out to be cheaper, also means there's only so much you can change about the scenery. So if you're bent on a change of properties, go ahead. However, if you're looking to keep it light on the pocket and your needs can be met with a few small fixes, it might be best just to keep the property.
Well, it is not going to be easy either way, with selling you'll have to keep your house looking all angelic all the time, clean and ensure your tenants are not pestering buyers. If you opt for renovation, you will probably have to live in a debris-ridden wasteland while trying to maintain a regular schedule. Either way, you'll have to put in the work.
If you're a real estate professional looking for advertising and growth opportunities, click the learn more button below.
The first thing you should do is find out how much you can get for your house and how much it would cost to renovate. Talk with your neighbourhood realtor to discuss your options and which is most feasible for you.
Another wise thing to do would be to check the market. See if you can find a dream home in the range that you’ll get from selling off this one. Or perhaps try mapping out alterations to your current home to convert it into your dream home. Either way, this is not one of those situations where you leap before you think.
According to the statistics, renovation is a clear winner with around 61% of home-related activity being a renovation, and only 7% were buying/selling. You don't have to stick to the stats though.
So, Should You Sell Or Renovate A Rental Property?
This is not a question that anyone can answer for you. Some things like sentimental value also play into the mix. However, with the right research and the proper guidance from professional property advisors, you will be able to make the decision best suited to your needs. While renovating does seem to be the hot choice, you might need changes that renovating cannot cover. If you like the neighbourhood and need that little bit of extra space renovating might be more down your lane. Professionals advise that you remain in the same property for at least three years to break even with the costs of moving and setting up home, so you'd do well to keep that in mind.
Renovating And Renting Out My First Property
Interested in Rental Property Financing? If so, contact us and we will show you how you can buy unlimited rental properties with great rates.