This really is probably the most frequent queries I get asked by property owners who are unclear about whatever they should do with their prized asset, Their House!
Whilst any advice would be offered on an individual basis, as a general rule the following should be noted…..
In December, 2010 the Bank Of England said mortgage approvals totalled 42,563 down from 47,287 in November and are now running at less than half their long run average. This along with the imminent threat of public sector employment cuts and a weak regional economy suggest that short term house price falls may be to come. The growth in public sector employment over the past 10 years has been significant and leaves the North of England particularly exposed to government cuts with 23% of the workforce employed in this sector. However, we believe that low interest rates will put a floor under significant price falls and limit price drops this year.
Benefits of renting your home:
Tax-breaks could offset income tax on rent.
Depending on the rental market pricing and your monthly mortgage amount, you potentially can cover your monthly mortgage payments and create cash flow.
You can allow your property to appreciate as the market returns.
With these benefits, come potential risks such as various tenant issues, which a property management company such as Prime Market Realty could help mitigate and manage.
Also take note of the 2-5 rule when it comes to capital gains, especially if you are expecting a large profit on a future sale of your home. You would have to have lived in your home for at least 2 out of the last 5 years prior to the sale of your home to get the tax-free incentive; however there are exclusions and exceptions to this rule. Looking further into this may alter your decision on renting out your home, or at least for only a certain amount of time.
Benefits of selling your home:
Freeing up equity that could be rolled into a new home or for investing
Possible tax-free capital gain
Not having to deal with another property
I bet you’re searching the internet looking for the best methods to sell your house for free and I totally understand that. I was in your position and all the information seemed too much and information conflicted and it was pretty annoying at the time.