We understand how hard this time can be for you, and we are deeply sorry for your loss. It is never easy to manage property ownership during these trying times, but hopefully our assistance will make the process a bit easier.
You inherited a home and are now asking yourself, “What do I do with it? Can I rent or sell it? If so, how?” Trying to make sense of the options available can be overwhelming. Yet understanding your choices is essential for making the best decision and we can help!
As experienced Melbourne real estate investors, we are in the market to purchase numerous houses each month throughout the Melbourne area. We often receive inquiries from individuals who have inherited a property and want help selling it efficiently, so here are some tips that should make your journey smoother!
I Inherited A House, What To Do Next?
To help you make an informed decision, here are some essential factors to consider:
1) Make sure the mortgage is paid.
When the individual who left you their property also had a mortgage, unless it was without debt and completely paid off, then you must take on the responsibility of paying it if you want to keep ownership. Depending on the bank, you may be able to assume responsibility for a current loan. On the other hand, they could require that you refinance into another one. Consequently, renting might not be an option for you.
2) The investment is only as good as the manager.
If you’re not the biggest fan of managing brokers, maintenance, tenants, rent collection or anything else related to property management – why waste your time? Hire a professional to assist you or simply cash out now. Inheriting a house may provide the perfect opportunity to enjoy an extra source of income, provided you are ready to manage the property and any issues that arise with tenants.
AC Units can be a costly to maintain
3) Property ownership costs money.
It’s not very often that you come across a building that is impeccably taken care of. Unfortunately, most inherited homes require considerable renovations.
Avoid costly surprises down the road by hiring a proficient property inspector to give you an in-depth assessment of what needs to be done and how much it will cost within the next five years. Spending money now could save you lots later! Learn more about how much hesitating to sell your house is really costing you.
4) Selling a property for top dollar costs money.
Forget about all the trouble of making repairs, renovating kitchens, landscaping and cleaning up – when you work with us we buy Melbourne houses for cash in their current condition.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Let us assist you in weighing the current worth of your real estate against renting it out long-term. If you can reinvest your equity into something that will surpass the performance of property investment, go for it! If you have extra cash and your neighborhood is increasing in value, consider investing in real estate – if done right, it can be incredibly rewarding. Monitor the market carefully to ensure a successful investment!
6) Uncle Sam wants a piece of the action.
Before you make a decision regarding your inheritance, it is imperative that you consult with tax and legal advisors. You should be aware of the major property taxes and income taxes associated with ownership; these costs can drastically alter the value of your investment.
7) Consider all your options.
When the time calls for it, we can craft a lease-option agreement that allows you to own and rent simultaneously – combining two beneficial worlds! Although this type of transaction may be complex, our investment expertise in Melbourne has enabled us to show many investors how they too can be successful.
8) Compare a few scenarios.
Let us assist you in calculating prices for any property near Melbourne – whether it be the price achievable today without making any changes, the highest possible sale value currently offered on the market, or even if you plan to keep it as a rental. We can provide insight into all of these along with associated costs! If you’re wondering about getting a fair offer when selling for cash, you can read more here!