Issues surround money and property can take their toll. In the current market, it may seem less than ideal to sell their property. But for some, they find that renting frees up cash and allows them to move with ease.
Of course, this kind of decision should never be made as an impulsive one. On the contrary, if you are looking at renting out your property, you need to ensure that you are in a great financial place to do so.
There are some other things that you need to consider do. Let’s find out more.
Think About Your Current Circumstances
You need to think about the long-term gains, as well as your short term plan. Will you be moving temporarily? Are you moving abroad for a short period? If this is the case, then the obvious solution is to rent out your property. After all, it’s nice to have a backup plan.
For some, they may feel that selling their property is not a smart move. For those with larger homes, they are finding that they are not selling quickly. Due to the current housing market, larger homes are becoming nigh on impossible to sell. But, with a booming rental market, it can be a savvy way to make some extra cash.
When the property market lifts, however, you can then decide whether it is the right time to sell your property. After all, you need to make sure that you see a clear ROI on your bricks and mortar investment.
Can You Finance Two Properties?
If you are not in a position to take out a second mortgage, this option is not right for you. But, if you have a large sum of savings and you are in a good place to buy another property, you could rent out your current home. While you won’t have to pay the mortgage on this property, you will have to consider landlords insurance, taxes and maintenance repairs. Do make sure that you are in a good financial place to do this. If not, avoid renting your home out.
You can check out how much your home would be worth on the rental market by getting a report done. Property condition reports by Asset Focus can determine how much your home is worth on the rental market. This can be an excellent way of determining if you have enough cash in the bank to fund this option.
Check the Small Print On Your Mortgage
So, if you have made the decision into renting your home out, there is one more thing that you need to check before you make this decision. Check and read the small print of your mortgage terms. You may not be allowed to rent out your property. Some mortgage providers will allow you to rent out the property after a specified period. You may have to pay higher interest fees to your mortgage provider too. The devil is in the detail, as they say, so do check your personal terms before you commit.