A major question that most property owners have to ask themselves when deciding whether to sell their property or not, is should I rent or sell my property. There are some factors which need to be taken into consideration while deciding whether to become a landlord or not. To find out what some of these things are, read on.
First and foremost you need to determine whether you will be able to afford to have two properties or not. It is possible to refinance your old home and use that for the down payment for your new place but you have to keep in mind the extra expenses that you will incur when owning a second property.
An example of this would be that sometimes your property will have no tenants staying in it, and even though it may be for a short period of time at the end of the day it is still an extra cost that you will have to cover.
Another cost which needs to be taken into consideration is household repairs; this is not something that you can plan for and they can occur at the worst times possible. Of course you can plan for the odd coat of paint or small repairs but things like burst pipes or broken geysers can’t be planned for and will often exceed your budget.
You need to also think about the things that you can’t control, such as tenants who don’t pay on time or at all. You need to think about what you would do if this happens and who would handle the problem. You also have to think about how far away you stay from your second property because if there is a problem, are you too far away to handle it and if so who is going to do it for you.
Being a landlord can be very stressful, but it does bring extra money in every month and you can always try it out for a few months and if you decide that it’s not for you, you can change your mind and sell the property. If you are serious about becoming a landlord you should talk to a real estate agent to gain more insight into your options.
The South African property market is a great place to be in, it is a worthwhile investment if you are smart about it and don’t take un-necessary risks.
Sam has just decided to get into the South African property market and is deciding whether she would like to become a landlord or not.