People assume there’s only one way of getting your hands on a piece of real estate; buying it with your own money or a mortgage. However, they overlook another way many people get properties; through inheritance.
Yes, there’s every chance you could inherit a property at some point during your life. As such, this presents you with a very interesting conundrum; what do you do with this house? Normally, when you buy a home, your decision is already made for you, you know what you’re doing with the property as you bought it. Here, it can often catch you unawares when you inherit property, and you didn’t choose to buy it, so you have no clue what the next steps should be.
In this little guide, we’ll show you a few options you can choose from when you’ve inherited some real estate.
Inheriting a property gives you an unbelievable chance to make a lot of money. The benefit is that you haven’t paid for the property you’ve been given. This gives you more scope to improve it in various ways and flip it for a profit. Depending on the state of the house, you can spend a few thousand dollars improving it, and end up adding tens, possibly even hundreds of thousands of dollars to the price tag.
If you’re not in any urgent need of selling this property and can afford to make renovations to it, then this is the perfect plan. It’s a good way of really squeezing this piece of real estate for all it’s worth, and getting as much out of it as possible. A good way to judge if this idea is worth it or not is to look at the value of the property when you inherit it. If you find it comes in a bit below other houses of the same type in the same area, then it may be worth trying to increase that value and flip it.
Sell It Right Away
Flipping your property is different to selling it right away. With this option, you look at the house and decide you want to offload it without doing any work at all. Why would you do this? There are many reasons, mainly, it requires a lot of effort to flip a property, which you may be unwilling to give. Furthermore, the property you inherit might be beyond help, meaning it will cost far too much to renovate it, so selling quickly is your best bet.
You want to offload it as quickly as you can, to pocket the cash and use it for something that benefits you more – like another investment, or paying off an existing mortgage. In general, the best way to sell houses fast is to look for cash buyers. Anyone that tries to buy your house with a mortgage will need to go through the whole application process, and it can be months before they have the money for you. Look for people with the cash ready to go, and you can finalize a deal in a matter of weeks.
Rent It Out
Getting rid of the property isn’t the only way of going about things. You can easily keep it, and just rent it out to tenants. This is a good idea if you find the house in good condition. If there are no issues with it, and anyone could just move in and live there, then you may have just found your first buy-to-let venture.
Renting out an inheritance property is exceptionally beneficial as you start making money right away. You get a regular source of income, and it can really give your finances a boost. The key thing here is that you didn’t buy the property, so you haven’t got any money to make back. Every rent payment is essentially profit for you.
Essentially, there are three main ways you can take an inheritance property and start making money from it. If you need quick cash, stick it on the market and sell it right away. If you can afford to wait a bit, and spend some money, flip it! Or, if you want to start a buy-to-let empire, rent it out. Of course, this article assumes you already have a property or a place to live. If you don’t, and you’re still renting, then another option is to move into the inherited property and call it your own. There’s nothing wrong with doing that, and you still have all three options open in the future if you have a change of heart.