Moving home is never something anyone wants to think about. But, we all end up moving a few times in our lifetime. Circumstances change, and we either need to scale up or down and move into a home more suitable for our situation.
What I’m interested in is what you should do with your hold property when you move. Of course, this only applies to people that actually own their current home. If you rent a house or flat, then you just leave it and move elsewhere – it’s not your responsibility after you move.
Realistically, you only have two options; sell or don’t sell. Most of the time, people pick the first option and sell their home. But, is this always the right choice? Could you maybe benefit from keeping hold of it and using it differently?
The best way to figure this out is with a pros and cons list! I know, it’s amazing how many conundrums can be solved in life purely by weighing up the pros and cons. I’ve put together a list that you can view right here:
Selling your home has long been considered the thing to do when you move. Mainly, this is because there are some major benefits.
You Get A Lot Of Money
It’s no secret that houses cost a lot of money, and you can end up with a lot of cash when you sell. This is really beneficial as it can help you fund your move into another house. If you’re moving into a new property, and not choosing to rent instead, then you’ll obviously need money. By not selling, you rely on savings and a mortgage. Things are much easier if you use the money from a sale to fund your next home, which removes your need for a mortgage. This makes you very attractive to sellers, and you can easily find and buy a new home within a few weeks. Plus, you just don’t have the burden of paying a mortgage hovering over your head for the next decade.
You Only Have One Responsibility
By holding onto your home and moving into a new one you end up with two properties you’re responsible for. This can be too much to handle for some people, particularly if they’re quite far apart and in different cities. When you sell your old home, you get rid of that responsibility. You’re only responsible for one thing; your new home.
You Can Use The Money To Upscale
I already spoke about the fact you get a lot of money for selling a house. Even if it’s a small house that’s not worth much, it will still be the largest sum of money you’ve ever received. The good thing is, you can then use this money to upscale and move into a bigger and better home. If you hold onto the house, you may play it safe and rent a smaller property or buy something that’s really cheap and small to save on the mortgage. But, with this new cash, you can fund a much bigger move.
There are quite a few benefits of selling your house, but what about the cons?
Giving Up A Source Of Income
If you sell your home, you’re essentially giving up a source of potential income. You see, the other option is that you hold onto it, and then rent your house out to tenants. This will provide you with regular income every month in the form of rent. It might not be as large an amount as you get from selling, but it will slowly add up over time and help your finances. The fact is, when most people are looking for investment properties, they look for a buy-to-let option as it presents the best and safest chance of making money. So, if you sell, you’ve potentially missed a very good opportunity and lost a source of income.
It’s Incredibly Stressful
If you think buying a house is hard, selling one is even harder. You have to deal with people coming to your house and looking around, criticising every little element. Then, you have people trying to haggle the price and making things awkward for you. Not to forget the fact that you can accept someone’s bid and get everything sorted, and then they pull out at the last minute before contracts are exchanged. The simple fact is, selling a home is incredibly stressful. On the other hand, holding onto one and using it as a rental property is far less stressful.
It Costs Money
Did you know that selling a home can cost a fair bit of money? For starters, you have to pay an estate agent to help sell the home for you. They’ll promote it online, find potential buyers, and work on closing the deal. In the end, they snag a percentage of the sale, which can end up being quite sizeable. Of course, some of you are thinking, why don’t you bypass an estate agent and sell it yourself. Well, it can still cost money as you may have to pay for advertising. But, it leads back to the second con; selling your house is stressful. If you think it’s stressful with an estate agent on board, imagine how bad it is without one. It will literally be ten times worse, so, do you save money and sacrifice peace? No, you pay for an estate agent, which makes the sale cost money and removes some of the cash you get.
To conclude, there are some good arguments on both sides. Personally, I think the biggest thing to take away from this is that selling isn’t your only option. You can easily keep your old home and own the second one with a mortgage, then earn money from that second home. Many property investment billionaires started out just like that! However, there are definitely some people that will benefit more from selling – it all depends on you. Take a look at your situation when moving, and figure out if you’re better off selling or not.