The decision between renting or selling a home is a dilemma that many homeowners face. Both options have advantages and disadvantages, and the best choice may vary depending on individual needs, market environment, and plans for the future.
Let’s look together at the considerations for those who are undecided whether to sell or rent a house in 2023.
Renting or selling home: what to consider?
First of all, it is important to considerreal estate market trends in the area where the property is located. For example, in some small Italian towns, far from industrial or university hubs, or in tourist locations that are not very busy, selling might be the best option. This is because putting the property to income may be difficult and the income may not be sufficient to cover taxes and maintenance costs.
On the other hand, in cities like Milan, where real estate prices are constantly rising, it may be more advantageous to rent. In fact, rent can provide a fixed income that supplements income and, in the case of a property revaluation, can lead to a significant financial return.
Traditional or short rent: which to choose?
Another aspect to consider, possibly, is the length of the lease. One can opt for a traditional long term contract or a short lease through specialized platforms. Both options have their advantages.
Traditional renting offers rent certainty for the entire year, with condominium and Tasi fees paid by the tenant. In addition, it offers the possibility of a lower tax burden with dry coupon at 10 percent versus 21 percent provided on short contracts.
It is also true, however, that short-term renting offers the possibility of earning a profit that is on average 10 to 15 percent higher than rents for long-term contracts. In addition, there is no risk of delinquency as payment is made in advance, and you can dispose of the property as and when you wish.
Brief analysis of the housing market in 2023
In 2023, the Italian housing market showed signs of growth
, with house price increases between 0.5 percent and 1 percent expected for the year and next. However, the decision to rent or sell a property should not be based solely on market trends.
In fact, it is also important to consider other factors, such as one’s personal and financial needs.
Selling the house: pros and cons
Selling a property can offer several advantages. First, it can provide immediate income, which can be used to invest in other opportunities or to cover major expenses. In addition, selling a property may be a good option if you plan to move to another area or if you need liquidity.
However, selling a property can also have disadvantages. For example, if the housing market is down, you might get less than you hoped for. In addition, once the property is sold, any potential value appreciation over time is lost.
Could selling your home be the right solution? Here are Ideas & Real Estate’s tips for selling your home without stress.
Renting the house: pros and cons
On the other hand, renting a property can provide a steady income stream over time. This can be especially advantageous in a growing market where rents can increase over time. In addition, renting can offer greater flexibility, as you may decide to sell the property in the future.
One must also take into consideration the fact that renting a property can also carry risks. For example, there may be vacation periods, during which the property does not produce income. In addition, owners of rental properties must deal with the responsibilities of property management, which may include maintenance, repairs, and managing tenant relations.
Factors to consider when choosing to rent or sell home
When it comes to deciding whether to sell or rent your home, there are several factors to consider. These can be divided into three main categories: economic, logistical and personal factors.
Economic factors includecurrent and expected trends in the real estate market, the potential for rental returns versus sales, property maintenance and operating expenses, taxes and fees associated with owning and selling or renting the property, and one’s personal financial situation.
Logistical factors concern the management of the property. If you decide to rent, you must be prepared to handle the responsibilities that come with it, such as maintaining the property, dealing with tenants, and managing any vacations. If you decide to sell, you must be prepared to manage the sales process, which may include preparing the property for sale, finding a buyer, and managing the transaction.
Personal factors relate to one’s personal needs and preferences. For example, if you plan to move to another city or country, it may be cheaper to sell the property. If you want to maintain a connection to the area where the property is located, or if you want to have the opportunity to return in the future, it may be more cost-effective to rent.
Selling or renting? Evaluate carefully and trust the professionals
The decision between renting or selling a home in 2023 depends on a number of factors, including personal needs,housing market trends, and future prospects. Whether you choose to sell or rent, it is important to make an accurate assessment and, if necessary, seek the advice of a real estate professional .
Agencies such as Ideas & Real Estate can offer specific advice and professional support to help you make the best decision. With their knowledge of the real estate market and experience in property management, they can provide valuable advice and assistance whether you decide to rent or sell your home.