Carnelian Property Management Newcastle
  • Home
  • Contact
  • About
    • New To Renting Your Property?
    • Info For Experienced Investors
    • About The Team
    • What We Do
    • Testimonials
  • Suburb Profiles
    • Adamstown Suburb Profile
    • Cameron Park Suburb Profile
    • Cardiff Suburb Profile
    • Charlestown Suburb Profile
    • Hamilton Suburb Profile
    • Mayfield Suburb Profile
    • Merewether Suburb Profile
    • New Lambton Suburb Profile
    • Newcastle Suburb Profile
    • Wallsend Suburb Profile
  • Rental Appraisal
  • Switch to Us
  • Now Renting
    • Properties For Lease
  • Blog
We provide expert property management in Newcastle and Lake Macquarie.  Based in Charlestown NSW, we have been delighting property investors with our personal, professional service since 2011. If you find this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.

Should I Sell My Property Or Rent It Out?

26/6/2019

0 Comments

 
Should I Keep Trying To Sell My House Or Rent It Out - carnelian property management newcastle
In the current market many sellers are giving consideration to keeping their home rather than selling, and turning it into an investment property instead of a sale. Either there has been little interest, or the asking sale price they have been hoping for is not being achieved. 

In the meantime, their home is remaining vacant and non-income generating while waiting for a sale. In this article we suggest three questions to consider when weighing up your options around whether to hold out for a sale, or list your home for rent. 

1. ​Can You Afford To Keep The Property?

​The first consideration with this approach, not surprisingly, is whether you can afford to keep the property. That is, would the rental income generated by the property sufficiently offset the costs of holding it (mortgage repayments primarily). A rental appraisal will answer the question of how much the property could achieve on the rental market. 

If you can afford to keep the property, there are significant benefits in holding onto it rather than selling. Firstly, you will have the benefit of ongoing income contributing to the mortgage repayments. But most importantly, you would be achieving capital growth as the property increases in value over time. In short, the longer you hold the property, the more money you are going to make long term. 

2. ​Have You Considered Renting The Home Temporarily?

The decision to rent your home instead of selling does not have to be a "forever" decision. ​Remember that if the market is slow at the current time, and interest in your property is less than you expect based on previous performance, a suitable option may be to rent your property temporarily until the market picks up. It is quite common for a previously owner-occupied home to become an investment property for a short period, say 6-12 months, while the owners travel or take on a temporary work placement elsewhere, for example. 

Renting your home out during the "down time" on the sales market can be a valuable way to bide your time until the market improves and you can achieve the sales price you are hoping for now. 

Renting your home out during the "down time" on the sales market can be a valuable way to bide your time until the market improves. 

3. ​Is An Equity Loan An Option For You?

​The objective of selling may be to access money needed for other things. Again, at least in the short term, it is worth considering whether selling the property is actually required now or whether the money you require could be accessed via a loan against the equity you have in your home. 

Remember, equity is the difference between the market value of your property and the amount you still owe on your home loan, and is commonly used to obtain money for renovations or by investors to help purchase additional investment property. 

Importantly, when you sell you do not receive the full difference between what you owe on the home and the sales price. There will be capital gains tax, real estate agent fees and commissions, solicitors fees and stamp duty to consider. These costs of selling eat into the equity you've gained while owning the property, which is not the case if you borrow against the property rather than sell it. 

​Start With A Realistic Rental Appraisal Then Weigh Up Your Options

​If you're wondering whether to hold out for a sale or try renting out your property, we recommend starting by obtaining a rental appraisal. Even in a slow sales market, rental asking prices remain largely unaffected. This can be a great first step in weighing up your options, and could prevent the home from remaining vacant while it could be producing income. 
Get A Rental Appraisal
We provide expert property management in Newcastle and Lake Macquarie.  Based in Charlestown NSW, we have been delighting property investors with our personal, professional service since 2011. If you found this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Carnelian Property Management Newcastle NSW

    We are a family-owned and run Charlestown real estate agent offering expert property management across Newcastle and Lake Macquarie. 
    ​Get to know us here.


    Want More?

    Build your property management knowledge - get regular tips and advice for landlords and tenants straight to your inbox.
    Subscribe

    Categories

    All
    Adverse Possession
    Advertising
    Choosing An Agent
    COVID 19
    COVID-19
    Finance
    Furnished
    Insurance
    Investment Property
    Lake Macquarie Life
    Landlord Responsibilities
    Lease Terms
    Negative Gearing
    Newcastle Life
    Newcastle Property Management
    Pets
    Positive Gearing
    Preparing A Rental Property
    Property Management Costs
    Property Management Statistics
    Rental Appraisal
    Rental Yield
    Rent Review
    Research
    Routine Inspections
    Saving Money
    Suburb Profiles
    Tenant Responsibilities


    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017


    RSS Feed

Carnelian Property Management
1A Chapman St Charlestown NSW 2290
​ph: 02 4062 7458 (tenant / general enquiries)
m: 0407 065 126 (investor enquiries)
Facebook - Property Management in Newcastle - Carnelian Property Management
Instagram - Property Management in Newcastle - Carnelian Property Management
COVID-safe - Property Management in Newcastle - Carnelian Property Management
Subscribe to Email
​Request a Rental Appraisal
Rental Application Form
Lost Keys / Locked Out Policy
​Cleaning Checklist
Submit Maintenance Request
​Tenant Portal
​Investor Portal

Copyright © 2021 Carnelian Property Management in Newcastle NSW | ABN 18 624 074 077. Privacy Policy | Complaint Procedure
COVID-safe - Property Management in Newcastle - Carnelian Property Management
Facebook - Property Management in Newcastle - Carnelian Property Management
Instagram - Property Management in Newcastle - Carnelian Property Management
Subscribe to email
Request a rental appraisal
Rental application form
Lost Keys / Locked Out Policy
Cleaning checklist
Submit Maintenance Request
Tenant Portal
Investor Portal
Carnelian Property Management
1A Chapman St Charlestown NSW 2290
​ph: 02 4062 7458 (tenant / general enquiries)
m: 0407 065 126 (investor enquiries)
Submit maintenance request

​Copyright © 2021 Carnelian Property Management in Newcastle NSW
​ABN
18 624 074 077
Complaint Procedure
Privacy Policy
  • Home
  • Contact
  • About
    • New To Renting Your Property?
    • Info For Experienced Investors
    • About The Team
    • What We Do
    • Testimonials
  • Suburb Profiles
    • Adamstown Suburb Profile
    • Cameron Park Suburb Profile
    • Cardiff Suburb Profile
    • Charlestown Suburb Profile
    • Hamilton Suburb Profile
    • Mayfield Suburb Profile
    • Merewether Suburb Profile
    • New Lambton Suburb Profile
    • Newcastle Suburb Profile
    • Wallsend Suburb Profile
  • Rental Appraisal
  • Switch to Us
  • Now Renting
    • Properties For Lease
  • Blog