An inheritance is a luxury you may experience in your lifetime. Yet the gain comes at a cost and is often tinged with personal sadness. If an inheritance takes the form of physical assets, such as property, letting go of these can be hard due to their emotional significance. Below, we discuss what to do with inherited property.
Sell
For many people, selling an inherited property is the first solution. With the property gone, it can be easier to get closure and move on with life, particularly if the home has many memories attached to it. However, selling also comes with some baggage of its own that may cause additional stress.
Firstly, you must decide what kind of sale you want. If you are looking for the best price for the property, you may need to invest in renovations and upgrades. Not only will this require capital, but spending time at the property may also be too much on a personal investment.
Some companies will buy houses for you and many even specialise in a probate house sale. While you may get a lower price for the home, they have quick turnaround times and will provide cash offers. When compared to the lengthy process that is undertaken with mortgage buyers, this can be a much more beneficial route sacrificing some of the profit for speed and peace of mind.
Rent
Renting is the next option and one those who can separate their head from their heart may consider. In many areas, the rental market is quite strong, meaning demand for properties is at an all-time high. By renting out an inherited property, you will immediately make cash without having to pay off a buy-to-let mortgage. This can be a great way to start a property business, as you can take the rental income and put it into further investment.
Think about how hands-on you want to be. Will you do all of the management of the property yourself? If you don’t have the time or inclination, you can give this to a property management company. However, they will charge a fee that can cut into your income. After-tax, it may not be worth the revenue. Very often, it is easier to manage a whole portfolio of rental properties as a main job than it is to manage one or two on top of your full-time occupation.
Live In It
The third option is to live in the home itself. You may want to carry on the family legacy, or it may just make practical and financial sense. Don’t be afraid to make the home your own. If you have to do major renovations or dispose of old fittings and fixtures, try not to get emotionally invested. The memories will remain and you are just getting it ready for a new stage in its life.
Whatever you decide, don’t rush into anything. Inheriting anything can be emotionally draining, so take the time to take the path that is right for you. Whether you choose to sell, rent or live in the property, being gifted the home will have a positive impact in some way.
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