It’s highly plausible that every person’s first home purchase won’t be their last. There are households that stay a decade or more in their homes before moving on, while others outgrow the property in far less time than that. You might find yourself in a similar situation right now.
Whatever your reason may be for wanting to shop for a new home in St. George, Utah or in any other location, you’ll still need to figure out what to do with your current home. Mapping out plans for the property can help you discern the best possible way to finance your new home.
Flip and Sell
If your house has become a bit rundown over the years, there’s no reason to fret. It’s still possible to maximize your earnings if you do decide to sell it. One way to do this is by renovating the major selling points of the property.
Focus most of your attention on the kitchen and bathrooms, particularly the master bath. These are the two areas that buyers tend to look at when shopping for a home, according to real estate professionals. Your home will likely sell for more if it’s in better conditions, so look at the expense of renovation as an investment toward the new home you plan on purchasing.
Rental Property
If a one-time profit doesn’t interest you, you’ll be happy to know that there are two ways by which you can receive monthly income to fund your new home.
Long Term Rental
Known as the traditional renting process, Long Term Rentals usually require tenants to stay for at least a year. This type of rental is preferred by many landlords because of the consistency and commitment, despite the lower profit margins.
When a tenant enters into a contract, you as their landlord can expect to receive monthly rent for as long as the contract holds. Additionally, less regular maintenance work will be expected from you considering there will be people living on the property full-time. Hence, anything they may mess up will be their responsibility; but, you can still offer your help. Of course, you may likely have to foot the bill for bigger maintenance expenses like roofing and such.
Short Term Rental
Short term rentals or STRs refer to a minimum length of stay of a day to however long the guests wish to stay on the property. This kind of rental has become more popular with travelers, since it generally proves cheaper than staying at a hotel.
However, not all STRs are created equal. Properties become more profitable if they’re located in, or near vacation spots like Florida or Hawaii. Moreover, it’s critical to note that the higher profit you can potentially get from STRs come with greater responsibilities.
Constant upkeep and maintenance has to be provided to ensure that each guest’s stay is comfortable, even luxurious. There’s also a financial aspect that accompanies this rental setup, since old homes require some rejuvenating before they are attractive to travelers and vacationers.
In the end, the decision you make is your own and what best suits your needs. Your old house will still pave the way to you purchasing or bettering your new home regardless of the option you choose. However, it’s important to be mindful as you go about this process, so you can make the best decisions and get the most out of the property as you say your goodbyes to it.
