Deciding Between Selling or Renting Your Inherited Property

Options for Selling Your Inherited Property

A Quick Summary

• You could get a significant one-time amount of cash from a sale.
• Selling is a one-time transaction with no long-term commitments.
• This option can be simpler, especially when multiple parties inherit the property, helping to reduce potential family disagreements.

• The sale could be subject to inheritance tax (you can refer to the HMRC’s guide on inheritance for clarification).
• Real estate usually appreciates over time and can hedge against inflation, so hastily selling might mean missing out on investment gains and the property’s possible future value growth.
• Market volatility can affect the sale price; selling during a market dip could lead to lower returns.

How to Go About Selling

The typical routes to sell a property apply:

Selling on the Open Market

You could opt for a high-street or online estate agent to sell the property traditionally.

Online platforms like Purplebricks might offer lower fees but with a more hands-off service approach, which could be a plus for you.

Selling to a Cash Buyer Company

For those who prefer a swift sale, considering ‘We buy any house’ companies could be attractive. These companies make quick offers and can finalize sales speedily, albeit often at a value lower than the market price.

While this can be a neat solution for inherited properties, it’s not suitable for everyone, mainly if you aim to maximize your sales proceeds.

There is a range of such companies, but pick carefully to avoid falling prey to opportunists who might exploit your situation.

In my experience, I’ve found MyHomeBuyers to be trustworthy, and I’ve paired with them for some time. However, you should always do your due diligence and research thoroughly before going down this path.

Considering Renting Out Your Inherited Property

Being a landlord isn’t just about renting properties; it’s about managing investments.

Although the buy-to-let market faces scepticism due to regulation, taxes, and a potentially cooling property market, I still see it as a solid long-term investment choice. I’m completely on board!

Today, I’m here to give an impartial take, so let’s look at the pros and cons.

A Quick Summary

• Renting provides consistent income and financial stability. Who wouldn’t want that?
• If selling isn’t favourable right now, renting allows you to wait for better market conditions while still making money.
• Property values generally increase over time, making them a solid investment against inflation.
• For those who aren’t in need of immediate cash, real estate is a traditional method for wealth accumulation and growth.

• Landlording can be tough, with challenges ranging from difficult tenants to ongoing maintenance.
• It requires active management, even with a property management company involved.
• You’ll have to deal with lots of regulations and laws.
• It’s a business and comes with standard business responsibilities like taxes and expenses.
• If multiple heirs are involved, differing opinions can lead to disputes.

Final Thoughts

If you’re looking for a hassle-free option, I have to be honest: becoming a landlord might not be the best choice for you.

However, if you’re willing to manage tenant relationships and see real estate as a sound investment, then being a landlord could be a good fit. Maybe.

Good luck with whichever path you choose!