A few of you might have purchased property in East London. Now, the question that arises is whether you should sell it for a profit or rent it out for consistent cash flow. Whether you decide to sell the property or rent it out, you will gain long-term income, but no decision is simple. The answer varies depending on your finances, the condition of the market, and your goals.
A lot of other property owners in East London are wondering the exact same thing. That’s why we are here—to help you out.
Why Selling Your East London Property Makes Sense
In case you are thinking of selling the property, you are partially correct. Especially if selling your house earns you a profit. If you have had the property for some time now, there is a great chance that you can sell it for a decent amount of profit. But, is now the right time to sell?
When Selling Makes Sense
Property Prices Are High
As many people are not aware of it, East London has been the hotspot for property investment. This is the key reason why property value has increased substantially over the years. If the house you are selling has good value, you stand a chance of having a large amount in your account after selling.
You Need Instant Money
Selling an asset while simultaneously funding a new venture, consolidating debt, or even during a significant life transition will, unlike renting, easily earn you a profit.
You Don’t Want Everything That Comes With Being a Landlord
Resolving disputes and managing costs associated with tenants, repairs, and even rent defaults can be rather burdensome. Selling might be a better option if the idea of being a landlord makes you anxious.
Market Unpredictability
The economic value of real estate is subject to unpredictable changes. If you think the prices are going to drop in the near future, selling before this happens might benefit you financially.
Your Property Is Vacant And Requires Work
If renovating will make the property more appealing to a tenant or tenant ready, selling might be a better option for you as it frees up time and money. Buyers are looking for homes for sale in East London, even those that need a bit of work.
Reasons In Support Of Renting Out Your Property
Renting can be considered one of the most effective ways to earn income through property appreciation, but this does not mean it is always right for everyone.
When Renting Would Be A Good Idea
You Want Reliable Income
There is a constant demand for East London flats for rent and so market for existing landlords is favorable bringing steady monthly profits.
Your Property Is in a High-Demand Area
If your property is located close to public transport, reputable schools or sought after locations such as Shoreditch or Stratford, you will likely have no issues with finding tenants.
You See Considerable Potential for Growth
Due to the amount of regeneration initiatives being undertaken in East London, it is an area that has great potential for future price appreciation of property. Thus, holding on to your asset might prove prudent in the future.
You Already Have Another Place to Live
If you do not need to sell in order to purchase another home, renting the property can enable you to retain ownership while also earning rental income.
You’re Open to Working with a Letting Agent in East London
Do you not wish to get involved in managing the tenants? The Letting Agent will manage every aspect of the property, including tenant recruitment and maintenance.
Important Factors To Bear In Mind Before Making A Decision
If you're on the fence about whether to sell or rent, consider these.
- Your Cash Flow Position - Do you require the money now, or can you afford to wait?
- Market Sentiment – Is there an anticipated change in prices of houses in the next few months?
- Your Future Goals – Do you intend to move overseas, retire, or purchase additional properties?
- Impact of Taxes - There are tax implications associated with selling, such as the capital gains tax and renting which is subjected to income tax.
What Option Should You Choose?
There's no right or wrong answer—it heavily relies on your personal situation. If you need money fast, selling your home might be the best choice. On the other hand, if looking into the future, renting may help in creating wealth over time.
Need more information? Talk to a letting agent in East London to help you weigh all the options. Either way, seeking professional guidance for selling or renting would ensure this venture is smooth and profitable.
Frequently Asked Questions
1. Is renting out my East London property worth it?
Yes, if it is in a good condition and is located in a high-demand area, such as east London, you can benefit from renting as a steady source of income and experience long-term capital growth.
2. How do I know if now is the right time to sell?
Take a look at the trends and values of properties in East London alongside the demand for houses for sale. You can consult a local estate agent who will help shed light on whether it is a seller's market.
3. Can I switch from renting to selling later?
Of course, most landlords start by renting their property and then make the decision to sell later depending on personal circumstances and market conditions.
