Sometimes people are left property in a will, or it falls to them because they are the next of kin of the deceased. Although this will be a potential shock at first, there is also plenty of opportunity regarding the property, and the choice of what you do with it shouldn’t be rushed.
To begin with, you should speak to an expert such as a mortgage broker and an accountant as to what the tax implications might be regarding the property. Once this has been looked into, and assuming you don’t have to sell the property for tax reasons, what else can you do with it? Here are some ideas.
Sell The Property As It Is
The first thing that many people will consider is selling the property exactly as it is, without spending any money on it or making any changes. Since you have inherited the property, and assuming there is no mortgage left to pay on it, anything it sells for will be a profit for you, so spending time and energy, not to mention money, renovating the house or flat wouldn’t always be a good idea.
Selling the house makes sense if you don’t intend to live there, especially if it isn’t local to you or you have your own home already. You can receive the money from the sale as your inheritance.
Renovate And Sell
Although much of the time a property you inherit can be sold ‘as is’, sometimes some form of renovation may be required, especially if it is not worth very much in its present state. Any money you put into the property before it is sold should be seen as an investment, so it is a good idea to have a property expert appraise the property. They will be able to tell you how much it would be worth if the changes were made, and you can then decide whether it is worth paying into.
Sometimes it’s less about the money and more about the time it would take to sell. If a new kitchen or bathroom or new carpets, for example, will make the property more desirable so it sells quickly, even if it doesn’t necessarily add to the value, then it may be worth doing.
Alternatively, you may not want to sell the property at all, and instead, you might choose to rent it out and be a landlord.
When you rent out a property, you will receive a monthly payment from the tenants, which, depending on the size of the property and its location, as well as several other factors, could be a considerable amount. It might even be enough for you to stop working, or at least to be able to save a good deal of money.
Remember, though, as a landlord you will have responsibilities regarding the property’s upkeep, and you may need to hire an agent to deal with this for you. There will also be times when the property is empty and no money is coming in from it. You should have a contingency plan in place for when this happens.