3 Ways to Turn That Inherited House into Money
Often, when you inherit a home, it’s because of the passing of a parent or grandparent. These are sad times and although you treasure that home they’ve left you, you have no real use for it. By this point in your life, you are probably married with a home of your own and have no desire to move from your current location. The kids are happy in school and have loads of friends in the neighbourhood you now reside in. This leaves you in a very precarious situation. The following information may help you discover how to keep that home from being a financial burden.
One thing you can always consider is to let the property out. Unfortunately, often that property is located too far from where you now reside, and it would be a time-consuming endeavour to collect rents, maintain the property when something breaks, or even to do your biannual inspections. You could always contract an estate agent to manage your property for you, but would you really realise any money after you’ve paid them their fees?
2. List the House for Sale
Selling the house might make the most sense at this juncture, but that could be a costly and time-consuming prospect as well. Homes don’t always sell as quickly as the owner would like and the cost of upkeep and taxes could amount to more than you can comfortably handle from your already limited disposable income. In a situation like this, perhaps your best option would be to contact a company like Fast Buy Properties who do the research on market value, offer you a fair price for an “as is” sale, and even help you find a lawyer to represent you on the legal end if that’s what you need. A quick sale would certainly leave you with liquid assets (money!) you could reinvest if you wanted to grow the amount you’ve made on the quick sale.
3. Take Out a Home Loan on That Property
Many times, the property left to you is free and clear of any financial encumbrances. In cases like this, why not take out a home loan against the value of the property so that you can use those funds to make investments? However, it should be noted here that borrowing money to invest is considered very risky. Perhaps you want to update that home and your current home as well. Or, maybe you have found a startup with a great deal of potential for growth you’d like to invest in. If you choose not to sell the home, at least it can be used as equity to help you in other financial areas of your life.
The one thing you shouldn’t allow yourself to do is to feel guilty for not wanting to move into that house you’ve just inherited. Of course, you ‘could’ always move into that home and sell the one you’re in, but why would you want to maintain and pay high taxes on two properties if one is easily disposable? These three ideas can help you turn that inherited home into liquid assets, which can help you turn a tidy profit. What you do with it is up to you, but as the old saying goes, never look a gift horse in the mouth. Use that inheritance wisely.