Is it good to Sell or Rent Your Second Home?
Aug 31, 2017 Home Trading Steps
Mr Avinash has moved to Pune and plans to buy a flat there and he has a property in Delhi as well. But now he is concerned that what he is supposed to do with his Delhi flat? Whether he should sell it off or put it on rent? Which will be better to do?
So here we have listed some factors that will help in deciding what to do further?
Cash flow: Think about whether keeping the property will be an expensive affair or you will earn more. Check how much you are spending on the second home every year and how much rent you will ask for it? Will you make more money or spend more? Which one is higher? If spending is more than selling it off and if you are earning more through rent then putting your second home to rent is a better option.
Tenant: This is a very crucial question to ask yourself. Can you handle the tantrums of tenants? Do you have that much of patience? Living in a different city and handling tenants in a different city could be a problem. As you cannot go and visit them on a regular basis if the tenant is in a trouble and sort out the same. If you are in the same city you can follow up with the tenants for various things like paper work, check the condition of the property and find suitable tenants.
Is your property profitable for future: If your property is strategically located in a good real estate market which has all infrastructure in place along with the amenities, then the price is expected to rise. You can wait for the right buyer and till that put the property on rent such that it does not get wasted.
Maintaining both the properties: Ask yourself whether you can handle the expenses of both the properties or not. Be prepared for it. Whenever a tenant leaves, you need to check the property for repair and undergo the repair work. Then there are travel expenses for the same as well. If you can handle the property then renting your second home could be a good option.
Keep these pointers in mind and decide what should you do with your second home.
So here we have listed some factors that will help in deciding what to do further?
Cash flow: Think about whether keeping the property will be an expensive affair or you will earn more. Check how much you are spending on the second home every year and how much rent you will ask for it? Will you make more money or spend more? Which one is higher? If spending is more than selling it off and if you are earning more through rent then putting your second home to rent is a better option.
Tenant: This is a very crucial question to ask yourself. Can you handle the tantrums of tenants? Do you have that much of patience? Living in a different city and handling tenants in a different city could be a problem. As you cannot go and visit them on a regular basis if the tenant is in a trouble and sort out the same. If you are in the same city you can follow up with the tenants for various things like paper work, check the condition of the property and find suitable tenants.
Is your property profitable for future: If your property is strategically located in a good real estate market which has all infrastructure in place along with the amenities, then the price is expected to rise. You can wait for the right buyer and till that put the property on rent such that it does not get wasted.
Maintaining both the properties: Ask yourself whether you can handle the expenses of both the properties or not. Be prepared for it. Whenever a tenant leaves, you need to check the property for repair and undergo the repair work. Then there are travel expenses for the same as well. If you can handle the property then renting your second home could be a good option.
Keep these pointers in mind and decide what should you do with your second home.
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