Inheriting a property can come with all kinds of complications. If the property has been inherited from a loved one, you may need to time to emotionally handle the situation. However, with the property in your name, you’ll soon have to pay extra bills and taxes on it, which could be a financial burden. In this case, you need to consider your options – of which there are three.
If you grew up in the property and it has sentimental value, you may not want to part with it. One option in this case is moving in. The property may be mortgage-free, and you can sell your current property to make a profit. However, the inherited property may also be inconveniently located or inconveniently sized for your needs. If you have a partner, discuss the move with them thoroughly first – you may simply only want to move in due to the property’s sentimental value and not its practical value. In other cases, moving in may be the most practical decision you can make, as it may allow you to upsize affordably or put you in a more desirable location.
Selling inherited property is the most popular option, allowing you to free yourself of the financial and emotional burdens that it may carry. Property may have appreciated in value, and you could make a lucrative profit as a result. Meanwhile, you may simply want to get a property off your hands, regardless of what profit you can make for it. There are many services that can advise you on the best route to take if your attitude is simply: I want to sell my house. Auctions meanwhile can be beneficial for those hard-to-sell properties that may been slightly neglected and require too much costly renovations to find a buyer.
Your third option is to rent or lease out your inherited property. This may be a good solution if you don’t want to part with it, but need to cover maintenance costs or inherited taxes. Renting a property will require you to have a bit of backup money to pay for repairs and cover months where you may not be able to find a tenant. Tenancy agencies can help ensure that there is always someone in the property and that rent is always paid on time, although you may have to pay a fee to the agency as a result.
You can rent a property that isn’t immediately nearby, although it may be difficult to monitor the property and meet tenant needs – especially if the property is abroad. Paying a friend or agency to keep tabs on the property and its tenants may be an option.
Another alternative of course is to move into the inherited property and rent out your existing home. By having a clearer understanding of your current home, you may be able to more effectively turn it into a rental property – although you should check that your current mortgage allows you to do this.