Sell, renovate or become a landlord?

Looking at selling your home but would like to consider your options? Selling your home is often the first option that springs to mind when thinking of making a property change. This could be the way forward for you, but it’s worth looking at alternatives.

In this blog, we look at the other options to consider when you’re thinking of selling your home.

For more advice and information on making the decision to sell, renovate or become a landlord, download our eBook “To sell or not to sell”.

Which option you choose really depends on your reasons for wanting to make a move. Before you sell and move on, you should fully consider the options of staying where you are and renovating, or holding on to your home and renting it out. Let’s look at each option.

Staying-put and renovating

If you’re considering selling because you’re tired of your current home, consider whether renovating or refreshing some elements of your property would give it a new lease on life.

• Ask yourself what you’d be looking for in a new home. 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?

• Compare the estimated costs of renovations compared to the likely price of a new home.
  
  
• Is renovating realistic? Are you prepared for the time and effort that goes into having trades people at your home and the resulting mess?

Renovating your current home may let you hold on to the things you love and change the things you don’t. 

Renting out your house

Renting out your house could be a great option depending on your income and ability to service the mortgage on your current home as well as a new property. 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 terrify you? Would it be better to cut ties from an emotional perspective?
• Tax returns may become a little bit more complicated. Will you want to get an accountant?
• Check out tenancy.govt.nz for the ins and outs of all things tenancy.

If these alternatives to selling don’t answer your need for change, selling could be the option for you. Find out more by downloading our eBook “To sell or not to sell”.