We all want to make the best decisions in life. It’s a natural want that’s inherent to all humans as we tend to strive for perfection. More so when it comes to finances and financial stability. The housing market in Australia is ripe with opportunities and nuances, now more than ever. With fortunes to be made or lost, it’s an open game for anyone willing to put some time and effort. Getting started is easier than you think and if you have a home or some capital available, you already have a head start. With that, let’s begin!
1. Benefits of renting
In the case where you have property lying around doing nothing, you only have it producing opportunity costs. Renting is the fast track to that lucrative passive, steady income many dreams about. When you are moving to a new home or have an office space, warehouse or similar lying around, renting it out to third party individuals is the way to go.
Renting is awesome when done right, as the steady inflow of cash covers all the basic expenses. That being said regular maintenance, expenses, upkeep, tenant screening, and other tiny nitpicks are there to nibble at your profit margin. Additionally, finding reliable and trustworthy tenants can be a challenge, which is why conducting a thorough tenant screening report before renting out your property is essential. The downside to renting is exactly that combined in a single word, upkeep.
2. Benefits of outsourcing
Finding trained and experienced people in this area is the perfect middle ground. If you are waging whether to go with renting or selling, there are advisors available that can decide for you. The devil is in the details, and profitable strata management in Sydney is available to help you overcome it. Seeing how the slightest, smallest paragraph in a contract can have a significant impact on your bottom line, it makes sense to outsource all this hustle to someone with more experience in the field.
Just as you would hire anyone to do a job you know little about, the same principle goes for professionals in real estate, whether you are buying or selling. Keeping track of current rates, market fluctuations, legalities and a million other factors come naturally to trained professionals.
3. Benefits of selling
For when you want a fresh start and not deal with all the drag of renting, you can always use a cash infusion in the form of selling. Getting substantial capital all at once can be the boost you needed to get a fresh start. Renting a real estate property is a steady drip, but selling is an overwhelming inflow that can give you wings and open up new possibilities. Let’s say that you are moving to a new home and are a bit short. Selling the old one will expand your options and allow for fancier redecorations.
The same goes for office space or any other options. With more money at your disposal, come more options. As we mentioned downsides to renting so will we objectively display the same for selling? Market fluctuations are the number one cause not to sell, as your property can skyrocket in price over time. If you found yourself as the tortoise in the “Tortoise and hair” story, then slow and steady will win the race in this example. Selling is also permanent, and there is no going back.
If you rent to the wrong person, you can always cut your losses and rent anew. But if you sell, there is no going back.
Embarking on your new financial adventure starts the moment you make that first move. Whether you opt for buying or selling, any decision you make is better than none. More often than not, there is no ideal decision but the best one for you. When you factor in your current lifestyle, personal preference and life moment you may get a better picture of what’s right for you. Your journey to financial success starts now, and we wish you all the best in your future endeavours.