Selling and renting out properties are two of the most popular investment strategies today. Which one suits you?
Do you need cash badly? Do you need immediate or long term cash flow in this ever changing market? Selling is the way to go in case you need to cover a lot of ground. In cases you want to just have a steady cash flow, renting out is for you. Just make sure that you have enough set aside in case you decide to renovate or repair the property.
Are you thinking of the long term? If you want a steady income stream, renting out the property is a perfect strategy, especially for those that would rather work on just one property rather than several properties in the market.
What are the trends in your area? Does the area boast of a low rental vacancy? Or does it have an oversupply of rental properties that are barely occupied? Check the market trends and whether renting or selling is conducive in a given area.
Can you stand to be a landlord? When you decide to rent out a property, it comes with it the responsibility of maintenance, paperwork, renovations and tenants. Unlike selling where one just walks away once the property is sold, rent requires constantly checking the property.
Read more about this on the Property Observer website.