Apartment for sale or rent an apartment?!
Do you have an apartment and do not know what to do with him?! Prices of apartments are falling, rents are rising and vice versa you face the question of whether to sell or apartment to rent.
Here are a few considerations that can help you in that decision that ultimately do:
- Do you understand the real estate business? If not you will have to deal with all brokers and other professionals and trade will increase the cost.
- Start by analyzing the selling prices of similar flats like yours. Find out how much you can get for the apartment and that the apartment matched your selling well or not. And in what timeframe. Its very similar apartments for sale?
- What are your costs to sell the apartment? Realitce commissions, appraiser, lawyer, notary, real estate sales tax, tax on capital gains (if you own an apartment less than 5 years old and you live in it less than 2 years)
- What is the economic situation in the area in which you own an apartment. There is a high employment or dismissed, created new jobs? New investors come? What kind of community is it? City or gradually vylidňující the community? The better the situation, the higher real estate prices.
- What will be the economic situation in the area within 5 years or more? Will the property in the future rather capitalize on the price or vice versa? Depends on the economic development potential of the site.
- Are you willing and able to take on the responsibility that comes from people lessor? You will need to ensure the maintenance of the apartment. Changing light bulbs, to solve traffic problems. What if the tenant stops paying? You must respect the laws that can bind the owner against the tenant.
- What proceeds from rent per month, you can get? Analyze market prices. Its very similar flats on offer? There is a high demand for rentals in the area?
- What are the costs associated with renting your apartment? You need to consider the following costs: annual vacancy rate of 5-10%, taking care of the apartment, maintenance and management of apartment 10-15%, 1-3% advertising, energy, taxes, insurance plus if you have a mortgage or home loan, you must calculate the payments.
- Your personal financial situation and property. Need a larger sum of money immediately? Do you fear that property prices will fall? To sell high apartment, with the apartment for buy back cheaper? You will have a large immediate costs to sell the apartment (commissions, taxes), then you may have (if you go to rent and you do not have other housing available) comprise the principal of your home-backup from which you rent an apartment and soon again you will pay commission realitce for rent or re-purchase.
- What are your long-term financial goals and strategies? Prefer certainty and less regular secure income, or do you want to travel, move, do not bind to the property? To long, slowly but surely rely on the evaluation and create wealth and security in old age? Or you want to immediately get a larger amount of money, and that "spin"? Properties in time value to, resist inflation. Most contracts on rent inflation has a clause where the annual rent increases to the inflation rate ... On which side of the barricade, you want to be?
- What about the owners or the team member? It is in a good financial situation, taking care of the property properly? Correspond to the fees payable to the maintenance of the property, has a community reserve fund for accidental repairs etc.? Who are the neighbors, who is heading the community? It is necessary to consider whether such a community or cooperative in the future economic prospects.
- What are alternative investments? If there are good conditions for investment in the stock market or other asset, consider this. Sometimes it is better to buy stocks with dividend yield and the dividend to pay the rent and nothing to care than having a lot of trouble with rental apartment and then yield even worth the effort anymore. For example, look at CEZ and Telefonica O2.