Rent or sell – what makes more sense?

In the course of their lives, many property owners eventually face the question of what to do next with their real estate. Especially in old age, a changing life situation can mean that the former dream home no longer meets one's own needs. In this case, the question arises: Rent or sell? The following article highlights the pros and outs of both options and what you need to pay attention to in each case.

Life situations can change

At the latest when retirement comes into view, many people start thinking about their future living situation. The once-dream home may be too large now that the children have moved out, or it may no longer meet their physical needs. Sometimes it is possible to make modifications to the existing property. However, these can be expensive. Many older people therefore look for an age-appropriate apartment for their twilight years. This quickly raises the question of what will happen to their own property. This is a decision of great consequence and should therefore be considered accordingly. The two most commonly chosen alternatives are renting it out and selling it. But what are the respective pros and cons of these two models?

What are the advantages of renting out?

The big advantage of renting out a property is that the house or apartment remains in your possession, but at the same time you can financially profit from it through the rent. Such rent can represent a reliable and inflation-proof source of income. However, how lucrative this rental income is also depends heavily on the respective location. In metropolitan areas and sought-after locations, rent indices regularly rise. In the countryside and in less attractive locations, on the other hand, rents tend to stagnate. Before making a decision regarding renting out, find out about the current demand for rental properties in your region. If the secure and fast rental of your property is important to you, you have come to the right place. We would be very happy to assist you, for Your concerns regarding the rental property Yes.

A rental can also be very good as a bridging measure suit. If you want to move into the property yourself or pass it on as an inheritance at a later date, renting it out in the meantime can make sense. Furthermore, you should keep an eye on future developments in the real estate market in your region. Since it is to be expected that the value of your property will increase even further in the coming years, it might be financially better to rent out the property in the meantime and wait for a more favorable time to sell. The future development of real estate prices is determined by various factors and can only be predicted to a limited extent by laypeople. When in doubt, consult a real estate expert to obtain further information.

Many property owners are deterred by a potential wear and the associated loss in value before renting it out. However, such wear and tear can be claimed against the tax office. In that case, the so-called Depreciation. Acquisition and manufacturing costs can also be deducted from taxes. The depreciation period is 50 years, or 40 years for buildings constructed before 1925.

What disadvantages are associated with renting out property?

Renting out a property does not only come with additional income. It is also associated with various duties. The first hurdle, which you should not underestimate, is the Search for a suitable tenant. You should exercise great care in this regard, as unsuitable tenants can quickly become a problem. For instance, you must check in advance whether the tenant can actually afford the rent in question. Professional tenants who subsequently refuse to pay rent are a problem in many places. Furthermore, it can be extremely difficult and nerve-wracking to get such tenants out of your own apartment again.

You must also pay attention to the condition of the property. Major damage, mold growth, or extensive renovation work must be borne by the landlord. and can quickly involve considerable costs. If the tenant pays the rent but otherwise lets the apartment fall into disrepair, you may have to additional repair measures arise.

If tenants move out, they also have to look for new tenants. In the worst case, this can lead to interim vacancy and associated loss of rental income. You should therefore always factor in missed rental income and repair costs to a certain extent in order to avoid unexpected financial bottlenecks.

In addition, various tasks fall to you as the landlord. You must compile the annual heating and operating costs and fundamentally document all relevant income and expenses for the tax office. You may also be faced with additional payments or refunds for your tenants. If repairs are needed, you must also take care of a tradesperson. You can make the work easier for yourself by hiring a property manager. However, this is associated with additional costs.

Contact us – we are always available

CONTACT US

What are the advantages of selling real estate?

By selling your property, you immediately receive a larger sum. This can be advantageous if you already have a use for the money in the immediate future. You could use it, among other things, to pay off an existing loan and thus greater financial flexibility manage. If, on the other hand, you want to buy a smaller apartment, selling your old property beforehand can ensure that you No further credit at this age have to record. Basically, a sale can also be interesting if the expected rental yield turns out lower than with other investments.

Selling a house can also be worthwhile if it allows for significant costs to be saved. Over time, every house also comes with substantial maintenance and modernization costs connected. Depending on the age and condition of the property, these can represent a major burden.

Before selling, you should always inform yourself about the respective market situation inform. If demand is high and your property is highly valued, a sale is more worthwhile. We sell houses, plots of land, and apartments in Munich and the surrounding area and can provide you with the best information on the current market situation in the region. If you Valuation of your property wish, we will gladly create them. Our customers benefit from excellent sales materials and outstanding marketing. Our popular items include virtual tours, which allow interested parties to experience the property in three dimensions.

As a broker, we offer you a strong sales service for selling real estate. We have extensive experience and expertise in the real estate market and know how to sell your property successfully. Find out about our proven Real estate sales service!

Of course, we look forward to your Contact by email or telephone.

What disadvantages can selling a property have?

When selling a property, in addition to the purely financial aspects, tax aspects must also be taken into consideration. If you have already rented out the apartment or house, you must the 10-year speculation period note. If you resell a property used by third parties within 10 years of purchase, additional tax burdens in the form of speculation tax usually apply to you. If you use the apartment yourself, this period does not apply. You do not have to have lived there for the entire time between purchase and sale. Self-use for the last two calendar years as well as in the year of sale is sufficient to avoid this tax.

Furthermore, before making a sale, you should ongoing property financing ensure. If a loan is still running for this purpose, you should be in a position to pay it off without a Prepayment penalty to have to pay to the bank. Otherwise, you might not have sufficient capital available even after the sale. Check whether it is possible to transfer a long-term loan that is secured by the property's land charge. Another property might be suitable for this under certain circumstances.

Check your options

Both renting out and selling your own property each offer pros and cons. Which option is the best decision for you personally depends on your life situation, your plans, the condition of the property, and a number of external factors. You should therefore inform yourself thoroughly before making a decision. You are welcome to contact us Contact record and consult us.