murraybridge 
Are you about to embark on a new adventure and need to leave the family home behind?
Moving away from a home you have become attached to can be an emotional minefield and in many cases people decide that rather than selling they would like to keep their property as a rental.
But is this the best financial move? Before you decide what to do you will need to answer a few questions for yourself.
What are the capital growth prospects?
Feelings aside, the best reason to hold onto a property is for the hope of long-term capital growth, which will vary greatly depending on the desirability of the area and the individual characteristics of the property.
Predicting future market values is hard to do but you can make an educated guess by conducting your own research and evaluating where the local market is sitting on the property clock.
What will your cash flow be like?
Holding onto your current property might sound like a good idea… until you figure out how much it’s going to cost you.
A detailed budget may help you in your decision-making process. Ask yourself how much money you will be left with after subtracting mortgage payments plus any payments you may need to make on a new home or rental.
Don’t forget to account for other costs that can come with an investment property, such as insurance, maintenance and operating costs etc.
Is the property suitable to rent?
Just as you would likely do up your home ready to sell, you will need to get your home into shape to turn it into a rental.
Turning a property into a rental can require a lot of work sometimes because you’ll want to ensure that it is safe and all maintenance work has been done. You may also need to renovate the property to help it attract tenants and maximise your rental income.
There’s often not an easy answer in these scenarios and as much as you should try to think with your head and make the decision that makes the most financial sense, sometimes you need to do what feels right in your heart.
It may help to talk to a local agent about your options and discuss what is happening with property in your area. Visit our friendly team at 61 Bridge Street Murray Bridge or call us on 8532 6666.
