As you tentatively dip your toes into the waters of becoming a first-time seller, perhaps you’re asking yourself “is there another way?” Depending on your financial situation and motivations to move – there could be. Have you fully considered the options of staying-put (and renovating), holding on to your home and renting it out, or selling your home out-right (and moving on)?
Renovating ("Our house would be perfect if it wasn’t for….")
If your reason to sell is that you’re no longer in love with your current home, consider whether a refresh and/or renovation could turn things around...
- Be realistic about what boxes you could tick by moving i.e. are you likely to find a home with your dream kitchen complete with state-of-the-art appliances within your budget? Or could you come close enough to your dream with an appliance upgrade in your current home?
- Weigh up estimated costs of renovations compared to the likely price of a new home.
- Split renovations into deal breakers/must haves and nice to haves. Renovating in stages and having a clear plan of how to get to your dream home may help from a financial point of view.
Renovating your current home may let you hold on to the things you love and have a home that’s as good (or better) than new.
Becoming a Landlord ("This could be the start of our property empire...)
Perhaps you’re not quite ready to part ways with your home just yet. Depending on your income and ability to service the mortgage on your current home as well as a new property, keeping your current home as a rental may be an option. Not only will you be creating a new income stream, but also a nice little nest egg to sell when the time is right.
Of course, this option depends on whether you’re ready to become a landlord…
- Blocked drains, leaking taps, electrical issues - are you happy to be on call 24/7 for your tenant and will you have the cash flow to cover repairs and maintenance?
- Rent payments are late; would you be firm enough to deal with tricky situations?
- Does the thought of a tenant denting your polished kauri floors make your blood boil? Would it be better to cut ties from an emotional perspective?
- Tax returns may become a little bit more complicated. Will you need/can you afford an accountant?
- Check out tenancy.govt.nz for the ins and outs of all things tenancy.
Neither of the options above float your boat? It's time to cut ties and sell.
Looks like selling out-right and making the move to a new place may be the way forward for you. To help you get closer to making a decision Download our eBook "To Sell or not to sell" - it's packed with tips, checklists and practical advice to help you weigh up all your options before putting up the 'For Sale' sign.