In the complex world of the real estate market, homeowners are often faced with the challenging question: should they sell or rent out their home? This decision has far-reaching financial implications and requires a thorough analysis. Regardless of whether it is an inheritance, a separation, a move or an advantageous increase in value, there are situations in the lives of property owners that confront them with the decision of what to do with their property.
Important considerations for the decision
Market conditions: How is the current local real estate market developing? In areas with high demand and rising real estate prices, a sale can be more lucrative. In stable or growing rental markets, on the other hand, letting could be more advantageous. Find out in detail about demand and price trends in advance. SWX IAZI Private Real Estate Price Index
Personal financial situation: What is your own financial situation? Do you need immediate capital or can you afford to rely on regular rental income, even if this is not forthcoming?
Future plans: What are your personal plans for the near, medium or longer term? Are you planning to return in the foreseeable future or are you moving permanently?
Resources: Do you have enough time and experience? Managing a (rented) property can be time-consuming and cost-intensive. Consider whether you want to take over the management yourself or use the services of a management company. Please note that resources are also limited here.
Selling a house: What are the advantages?
The current situation on the real estate market shows an ongoing dynamic that differs depending on the region and economic situation. In this environment, the decision to sell a house is often characterized by the prospect of attractive sales prices. Homeowners may see a favorable opportunity to realize their capital and benefit from current market conditions.
The following points speak in favor of selling your home:
Capital: A house represents a significant capital investment, especially in sought-after Swiss metropolitan regions such as Zurich, Basel or Geneva. Selling allows homeowners to release tied-up capital, which is particularly useful when costly investments or life changes are imminent.
Attractive market situation: The current market situation is an important factor. When real estate prices rise, this could be the ideal time to sell your home.
Facilitation: Maintaining and managing a property requires time, resources and effort. Selling your home can be a relief, especially if your responsibilities as an owner no longer fit in with your current lifestyle or if the property is no longer being used as a vacation home.
Life circumstances change: Changes in life such as a new job or family events as well as personal needs can make it necessary to sell a house in order to adapt to new life circumstances.
Management: No time and resources for managing a rental.
Renting out a house: What are the advantages?
But what if the property has not yet been sold and is to be rented out (for the time being)? The advantage of renting is that the real value of the house protects you from inflation, but you can expect annual depreciation. Another advantage of renting is that you have a regular and predictable income, also in terms of retirement provision. And if real estate prices rise significantly again in the next few years, profits can be recorded.
In summary, the following speaks in favor of renting out the property:
Yield from rental income: Renting out a house enables homeowners to generate rental income.
Profits through value appreciation: Letting also allows you to benefit from a long-term increase in the value of the property.
Flexibility: Renting offers flexibility, especially if life circumstances change and a return to the property may be possible in the future.
CONCLUSION
Careful consideration of all factors helps to make the right decision for the individual situation. Decisive considerations such as the medium to long-term personal life plan, the ownership of the home and the financial situation as well as clarification of the financing must be made here. The support of an experienced real estate agent or financial advisor can also be of great benefit in order to consider all aspects and make an informed decision.
All data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.