The decision between selling or keeping a residential property is crucial and should be based on your financial goals, long-term needs, and personal situation. Here, we analyze some of the advantages and disadvantages of each option to help you make an informed decision.

Selling the Property

Advantages:

1. Immediate Liquidity: Selling provides a sum of money instantly. However, it is essential to consider that the time it takes to sell the property is uncertain and depends on several factors.
2. Avoid Ongoing Expenses: By selling, you free yourself from expenses such as maintenance, taxes, and service payments.
3. Reinvest in Better Opportunities: The funds obtained can be used for other projects or investments, including another property that better suits your needs.

Disadvantages:

1. Loss of Asset: If you do not reinvest adequately, you could lose a valuable asset.
2. Tax Consequences: Selling involves paying taxes. There are strategies to reduce them. In some scenarios, you can be exempt from all taxes. Therefore, it is crucial to have the advice of a serious real estate agency.
3. Paperwork and Documentation: The selling process requires several documents, such as the property title duly registered in the public property registry, current service bills, and general documentation of the owners, among others.

Keeping the Property to Rent

Advantages:

1. Passive Income: Renting generates stable monthly income, especially useful in times of economic uncertainty.
2. Long-Term Appreciation: The property can appreciate over time, increasing the value of the wealth you build.
3. Income Diversification: Having a rented property means a new source of income.

Disadvantages:

1. Landlord Responsibilities: Maintaining the property and managing tenants requires time and effort.
2. Risk of Problematic Tenants: You may face late payments, refusal to pay, or property damage. It is important to get good advice to have alternatives for a secure lease.
3. Less Immediate Liquidity: The investment is tied up long-term.

Sell or Rent: Why Not Both Options?

There is also the possibility of renting the property while it is for sale. This can offer interesting benefits:

1. Income While Waiting for the Sale: If the property does not sell quickly, you can earn income through rent. This helps cover expenses and prevents the property from remaining vacant.
2. Flexibility: If an interested buyer arises, you can negotiate the end of the lease. This way, you keep the option to sell without missing opportunities.
3. Investment Strategy: By combining both options, you diversify your sources of income and maximize the property’s potential.

At Camacho Real Estate, we can advise you on analyzing your property so you can decide. We help you evaluate the market, correctly appraise the property, and guide you through the entire process.

Don’t hesitate to contact us to make the best informed decision! 🏡🔑