Vinayak Realtech

Real estate is one of the best ways of investing ever. Yes, it requires an initial investment amount, but over time, it returns more than you have invested. One of the best things is that you generate an alternative income source through this. You can put on the property on rent and earn a handsome amount every month. However, at this point, many people get confused about whether to Rent or Sell Your Property once the price gets hiked or keep it as a rental property to earn every month.

As a veteran realtor,  vinayakrealtech we must say that both are excellent ways to fuel your bank balance. However, if you need clarification on what to do, you must read this blog. Today, we will elaborate on both ways and their pros and cons for you.

Let’s start!

Rent or Sell Your Property: When to Sell the Property?

Selling means transferring the rights of the property to someone else. Hence, you must consider some market waves or situations before deciding. Here are some tips for this-

1. Market Demand

Market demand is the biggest factor you must consider before selling your property. When the demand is high and supply is lower than usual, there is a hundred percent chance that you will get the best price for your property. Thus, always wait for the peak time to sell your property.

2. Follow the Season

There are some seasons when the real estate market gets hiked up and you will get plenty of buyers. For example, festive is ideal for selling your property. You can consider festivals like Dusherra, Diwali, Holi, Ram Navami, Janmashtami, etc., for this.

At the same time, marriage season is also a good time to sell property because several couples need a home before starting a new life. Therefore, you will get a range of buyers to negotiate the price.

3. Weather Matters

Consider weather conditions before you decide to sell your property. Spring or Autumn is the best time of the year. These seasons are ideal for physical inspection of the properties. Remember, too hot, cold or rainy season makes a huge obstacle in this and demotivates the buyers.

4. Age of the Property

Try to sell your property after 3 to 4 years of owning it. It ensures the property is in good condition, much depreciation has not happened and you will get certain tax concessions. In particular, you will get a significant rebate in capital gains tax.

All these factors impact the price tag and try to provide good maintenance to your property to attract potential buyers.

Rent or Sell Your Property: When to Rent the Property? 

Like the selling, there is an ideal time for putting your property on rental, too. Following the conditions helps you get tenants easily against the right amount. Here are the conditions-

1. Location

Location plays a huge role in deciding the future of a property. If you own a property in the middle of the city or a place full of corporate offices; you will be able to get tenants throughout the year. Ideally, you shouldn’t ever sell this property and take good care of it.

2. Market Situation

The ideal time for putting your property on rental is when the real estate market is slower. For example, if there is a recession going on, it is expected that the real estate market will see a downfall. If you try to sell the property at this time, you will fail to get the right price. However, you can get tenants.

3. Season

Like the selling, rental also has its season. Summer season is good for renting your property. It is because this time the schools and colleges announce their admission list and huge students start relocating. During this, you will be able to get your desired price.

Additionally, try to extend contact with your current tenant. It will reduce hustle for you.

For tenant retention,  provide enough security, and privacy and carry on regular maintenance work of your property.

Pros and Cons of Rent or Sell Your Property

 As the timing is clear, it is time to focus on the pros and cons of both decisions. It will help you make a clear and informed decision.

Let’s start with the pros and cons of selling the property-

Pros: Rent or Sell Your Property

It brings a huge amount to you

You get a retirement from taking care of the property

Reduces responsibility

Rent or Sell Your Property

If you fail to understand market fluctuations, you will fail to get the right price.

There are various taxes which reduce profitability

You need to search for a house right before you sell the property

It is a one-time profit

Pros and cons of renting a property-

Pros:

Makes a steady and alternative income source

There is no inside maintenance cost from your end

Can manage your property while staying out of the city

Cons:

Some tenants can cause serious issues

Need to check the background of the tenant carefully (to avoid any future legal issues)

Can harm the building structure

Can breach the legal contract and cause an issue

Rent or Sell Your Property: Which One is Suitable?

Selling or renting, the choice is always yours. However, we suggest, putting your property on a rental. Especially, if it has a great location and good amenities.

It will provide you with an alternative income source while maintaining your ownership of the property. However, do not forget to do regular maintenance of your property. It is advised to visit your property once in a while to see the real condition. It will help increase its lifespan and get more tenants.

It is great to say that the real estate sector has absorbed the shock of the COVID-19 pandemic and is rising again. Hence, if your property is situated in a prime location, there is a chance that if you wait, you will get a better price.

On the other hand, if your property is situated in a remorse location, does not have much convenience and you need a lot of money a go; you can sell it. Here, please note, that it is a one-time gain only.

FAQs

How can I save tax while selling my house?

Well, there are many ways, one of the most popular ways is to have the property in joint ownership. In this process, each owner can use many exemptions to reduce the taxes and it will lower the amount overall.

Do I need a broker to get tenants?

Having a broker is not mandatory if you want to put your property on rent. There are many sites dedicated to this, you can simply post an advert there and get your tenant. However, for this, you have to attend a lot of calls every day and answer all of the queries. It is time-consuming. If you avoid this, you must hire a broker.

How can I sell my property?

There are many ways, for example, you can post an advert on the internet, get a broker for this, or ask your friends to get a buyer. However, in every case, always check the background of the buyer carefully.

Wrapping Up

Putting a property on rent is one of the best ways to generate alternative income sources. However, if you need urgent money or have a property in a remote place, you can always consider selling it. To get more information on this or help regarding selling your property, you can connect us, Vinayak Realtech at any time. Good luck, folks!