First and foremost, please accept our condolences for your loss. We understand that this is a challenging time, and dealing with property matters can add to the complexity.
If you find yourself asking, “I’ve inherited a house, what should I do with it?” – whether to rent it out, sell it, or explore other options – we are here to guide you through this process.
While there are numerous choices available to you, we specialize in real estate investment in Port-Elizabeth. We are actively seeking to purchase multiple properties each month in the Port-Elizabeth, port-elizabeth area. Many individuals who have inherited properties reach out to us for assistance in selling. Below, you will find some valuable tips to help you navigate through this transition.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
It may seem like a straightforward step, but if the individual who bequeathed you a property also had a mortgage (unless it was mortgage-free and fully paid off, which is excellent!), the responsibility for the mortgage falls on you (if you wish to retain ownership of the property). Certain financial institutions may permit you to take over the existing loan, whereas others might necessitate refinancing with a new loan. In the event that you are unable to meet the criteria for a new loan, renting out the property may not be a viable option.
2) The investment is only as good as the manager.
If you find that handling brokers, maintenance, tenants, rent collection, and all the intricacies of property management is not the best use of your time, it may be wise to seek professional assistance or consider selling now. Some individuals who inherit properties opt to retain the house and lease it out for additional income. This can be a sound strategy, but it requires a commitment to property management and dealing with the challenges that come with tenants and maintenance.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Port-Elizabeth houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Discover the true value of your property in Port-Elizabeth today and compare it to the potential long-term advantages of renting. Consider leveraging the equity in your property for opportunities that surpass the real estate market’s growth. If you lack alternative high-yield investment prospects and the local area is experiencing appreciation, holding onto your property could prove to be a lucrative investment. Mastering the art of interpreting market trends is crucial for real estate success.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
7) Consider all your options.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our Port-Elizabeth investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Port-Elizabeth – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).
