To sell or rent – it’s a big decision. Owning rental properties can be a solid long-term investment and provide a steady flow of extra income. However, across the country, we are experiencing a very strong sellers’ market, with supply nowhere near meeting demand. Inevitably, this will not last forever, so many investors are wondering if they should cash in while the going is good. If you are a prospective landlord or a seasoned investor currently weighing up your options, then read on to see how to decide between selling or renting in the current market.
Benefits of Renting
There are many factors that go into deciding whether or not to rent your property versus taking the big cash prize of a sale. It can certainly be tempting to just cash in and enjoy your earnings, and perhaps that suits your plans, but you may also want to consider the long term benefits of renting the property instead.
If you choose to enter the rental market with a quality property in a high demand area, the long term rental yields could be quite promising. Take into account any potential property price increases as well. Should the day come when you’ve decided to sell your property and head off into the sunset, your property could be worth a substantial amount more and you would have been earning rent the whole time, contributing to your savings for your big plans.
Reasons to sell your property
While we seem to be experiencing a unique period in terms of property prices in Ireland, the day will inevitably come when supply has caught up with demand and prices will start to level off or even potentially decrease.
While this is still quite clearly a long way off (3 years minimum according to recent reports) it is something to bear in mind. When exactly will your property be at its most valuable? If you sell today, will you regret it a year from now when there has been another 5-10% increase? Of course, this is the very nature of property investment, and right now it is clearly a seller’s market. Prices have recently surpassed Celtic Tiger levels with a 3 Bedroom, Semi-Detached house in Rathmines selling for €1.2 million – a staggering €530,000 over the original asking price of €685,000. If this doesn’t tempt you to at least seek a valuation, then nothing probably will.
If there is anything at all we here at KPM Group can help you with please don’t hesitate to get in touch and a member of staff will be happy to help in any way we can.
