Monday, November 27, 2017

Inherited A Property? Here's All Of Your Options

It’s never a nice thing to think about, but at some point, family members and even yourself are not going to be around in the world. Death is one of those things that is a guarantee in life, and so there always comes a point in time where you may have to deal with assets on behalf of an estate when someone close to you has passed away. Quite often property is one of the things we imagine we would leave behind for our children. A legacy and some form of an estate to be passed on to help the family further. So what happens if you find yourself in a situation where you have an inherited property? What might you do with it?

I wanted to share with you some of the options available to you. There are a number of things you can do aside from the obvious that you may not have considered before. Some of which can provide you with an income or an influx of cash, others may be a more long-term decision. I hope that explaining all the options available to you that you can end up making a more informed decision on what might be the best step for you and your family to take during this very difficult and emotional time.


Live in it

Living in the house could present an ideal solution. It may be in the ideal spot, perhaps having neighbouring family or friends, and could help you to get onto the property ladder without much need for parting with much money or any at all if the property is mortgage free and left entirely to yourself. It could also hold some very dear memories for you, perhaps from your childhood. But at the same time, those memories might be something you want to forget so the decision to move in can be quite conflicted. However, if you are not yet on the property ladder or couldn’t necessarily afford to upgrade then having this home could be the ideal next step.

You may also see the benefit of holding on to it a little longer. Perhaps over time, the value might increase and it could prove to be a more long-term decision and beneficial to keep hold of it a little longer. While you may not want to live in it, there can be other ways you can benefit by keeping it longer.

Rent it out for income

If keeping it longer is the ideal situation, but you don’t necessarily want to live in it, then you may want to consider another option so that the house or property doesn’t remain vacant. Renting it out could be a great solution to the problem. There are some great benefits but there also some cons to renting out your home. The benefits of renting means you get some income which could come in handy, as well as making sure that the house keeps in good working order. However, you also need to consider that you are renting out to others, and that means placing some element of trust that they will look after the property and treat it with respect. This could be an issue if you end being unlucky enough to rent out to people who are perhaps untrustworthy.

Finding tenants, however, is far easier than it used to be. You can enlist the help of an agent who will subsequently vet the tenants ahead of signing any contracts. Tenants now have to go through more specific forms and checks to ensure that they are creditworthy and also can afford to keep up with repayments, which does give you some added security and peace of mind.


Sell it on if you don’t have any need for it

Selling an inherited property tends to be the most popular option when people find themselves in this situation. It gives you the added benefit of no longer needing to be responsible for the property with tenants in it or to be worried about it remaining vacant for long periods of time. You also don’t have the extra stress and hassle of moving house, which we all know isn’t always a fun process to go through.

It enables you to free up the equity in the property and taking the inheritance that way. This option works well if more than one of you have inherited the house. You can then sell it and move on to your portion of the sales proceeds. If you are wanting to it fast, then websites like WrenRealtyInc.com could be the answer. However, you may find that if more than one of you is involved, others may have different ideas of what they might want to do. If they want to move in, etc, then you may want to sell you part of the property to them so that you can move on.


Improve it in some way

In some cases, an inherited property may need updating. The chances are if older relatives have been living in it, then the kitchen, bathroom, and some modernisation like flooring and walls, may need improvement. This can work well in your favour, you can improve it and then sell it on for a much higher price. Again, if other parties are involved they may also take this view. For what could be spent on it, you could get a considerable return. Websites like hgtv.com/remodel are full of inspiration. However, you may also want to consider the option of selling it on to people who do this sort of thing for a living. You tend to get realistic sales and it could free up the process far quicker for you.

Turn it into a different sort of property altogether

Finally, you may want to think about changing the use of the property. You may find that it has a prominent position on a road for a business. Maybe to create a decent showroom or shop front. Perhaps the property is big enough to be turned into apartments instead of remaining as one dwelling. Applying for a change of use or planning permission is relatively straightforward and could mean that the overall value increases.

I hope that this has inspired you to consider some of the other things you could do with an inherited property.

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