You own a rented house and are considering selling it? Then you should approach the sale of the property well informed so that it runs smoothly and an appropriate selling price is achieved. We have compiled the 9 most important questions and answers on the subject of "Selling a rented house" for you, so that you can quickly get an overview.
Why sell a rented house?
A house ties up a lot of equity if you rent it out instead of selling it. It is precisely this equity that can usually be used more economically elsewhere. For this reason, large-scale investors do not invest in single-family or semi-detached houses, but rather in apartment buildings, condominiums or commercial properties. As a rule, you will achieve a significantly higher rental yield if you invest the sales proceeds in several condominiums and then rent them out, as you can achieve higher rental income converted to the square meter. In addition, the maintenance costs for a house are higher and the owner has to take care of more - partly because of the garden. In the case of a condominium, the property management often takes over a large part of the organization.
A simple reason for a house sale can of course also be that you need the equity capital. If you decide to sell your rented house, you have various options for using the proceeds of the sale and can spread your assets more widely than before - for example, by using the proceeds for investments on the stock markets, for example through appropriate investment funds. Alternatively, you can also do something for your old-age provision and, for example, secure a lifelong pension by taking out a single-premium fund policy. Which solution is right for you depend on how you are generally financially positioned and where you have already invested? If necessary, call in a financial advisor of your choice and let them inform you about the tax advantages and disadvantages of the various investment options.
To whom can a rented house be sold?
Almost all houses are bought by owner-occupiers who want to move in themselves. If you, as a buyer, decide to purchase a rented house, you will have to reckon with a certain amount of effort, which you will incur by cancelling your tenancy agreement with the previous tenant: Purchase does not break rent. Because of this, prospective buyers usually demand a price reduction; after all, it can take a while before they can take over the house. In this respect, it can be interesting for potential buyers to consider buying a rented house if a lower purchase price can be negotiated. Of course, the tenant may also be interested in buying the house.
How does renting affect the value of the house?
Whoever buys a house usually wants to live in it himself. If it is still rented, the buyer must therefore set some in motion and terminate the lease - because this continues to exist also with a sale. However, the buyer assumes all rights and obligations under the lease. Since a termination of the lease is subject to some uncertainties, the buyer takes a risk. The only argument for buying the house nevertheless is the purchase price. You must therefore be prepared for the fact that you will have to set the purchase price around 20 to 30 percent lower if you want to find a buyer. Under points 8 and 9 on this page you will find important information that counteracts this problem!
In the same category