Pros & Cons of Renting After Selling Your Home
Selling a home and becoming a renter is one of the most unexpected decisions. It particularly depends on an individual’s lifestyle choices, estimated budget, current real estate market condition, and other influencing factors.
Renting in Adelaide is quite popular among families, working professionals and students. It gives more flexibility and time until you find the right housing options after the sale of your current home. However, this also means giving up the benefits associated with homeownership. So, you need to gauge the potential benefits and limitations of renting before making the final decision. Make sure it should align with your targeted financial goals and future plans.
Here is a complete guide on the pros and cons of renting after selling your home. Understanding all crucial aspects and challenges can save you in the long run. After that, you can plan your move with the help of professional Removalists Adelaide and keep your precious possessions intact throughout the journey.
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]For many individuals, renting after selling can be a great way to rush the process of finding a new home, especially if you are in the competitive real estate market. It is always good to make a wise home-buying decision after thorough research. In this scenario, renting can reduce your stress and give you the following benefits:
Selling a home frees up capital and gives you a great opportunity to make bigger and better investment plans. Moving into an affordable rental property can help you reduce unexpected expenses, such as property taxes, maintenance fees, stamp duty, legal fees, etc.
The best part is that you can use that freed-up capital in mutual funds and other greater investment opportunities to secure your future, especially if you are retiring soon. This will give you financial flexibility and help you make better decisions if you want to buy a new home in the next few years.
According to some experts, property prices are on the higher end in the seller’s market due to neck-to-neck competition among buyers for a limited selection of residential properties. In simple words, if you sell your house in a seller’s market for a higher price, you will probably pay a huge amount for your next home.
However, renting after selling your home will give you enough time to wait for property prices to fall instead of rushing the decision. This can be a challenging situation as the property market is unpredictable. So, be watchful and buy your dream home whenever the scenario is in your favour.
Most people prefer renting after selling their homes to discover everything about the new neighbourhood. You can take your time to determine what you want and where you want to buy a home—the prime location or the laidback suburb.
You can even rent in a similar area where you are interested in making a property investment. Make sure the location has all the amenities you need, like schools, hospitals, banks, entertainment hubs, and much more. If you are moving locally, do proper research and find budget removalists Adelaide for the utmost safety of your heavy furniture during the move.
Renting in South Australia comes with several benefits. As a renter, you don’t need to worry about property repairs, major renovations, maintenance and other home-related expenses.
These can be time-consuming, mentally draining, and, of course, expensive. All you need to pay is the first month’s rent, a refundable security deposit (equivalent to four weeks’ rent), and an application fee (not in all cases).
Renting gives you more flexibility to relocate for travel, work and other commitments. You can move closer to your work as you are not bound to a long-term homeownership. In Adelaide, you can find multiple short-term rental options depending on your specific requirements and estimated budget.
It is important to consider the potential drawbacks of renting after selling your home. This will help you make a well-informed decision:
The rental prices can be influenced by several factors, making it one of the most unpredictable markets. The landlord may increase the rent or ask you to move if he/she decides to sell the property. So, there is no certainty compared to owning your own home. However, it is always good to read your tenancy agreement before signing it and know all your rights to prevent miscommunication or exploitation.
Renting doesn’t allow you to build equity. This is one of the major drawbacks, especially if you make this decision after selling your home. You won’t leverage the benefit if the property prices increase. Plus, your rent will go into your landlord’s pocket- you are just paying for somebody else’s mortgage.
Did you know that rental prices in certain locations may be similar to your mortgage or even higher? This happens usually in the hotspots or prime locations. So, it is good to create a proper budget, do thorough research and search for suburbs or neighbourhoods where you can find good properties at the best price.
It can be quite challenging and stressful to move twice. You will need to pack your stuff, hire professional removalists Adelaide, and transport all your belongings all over again. That’s why people buy their own homes rather than a short–term rental option.
Below are some situations when renting can help you leverage benefits:
The decision of renting after selling your home comes with both benefits and drawbacks. It is important to understand your pain-points, market conditions and financial stability before making the final decision.
