Receiving an inheritance can leave you in an interesting situation. Sometimes an inheritance can be a great windfall when you really need it, but there are also occasions when it might feel like something of a burden. Inheriting a property is often more complicated than simply inheriting cash. It’s an asset that may be worth something, but it could be made more complicated by the fact that it might still have a mortgage or the estate has debts that need to be paid off. However, once you’ve dealt with any issues and you’re the rightful owner, you need to decide what to do with the property.
Your main options are to live in it, sell it, or keep it but rent it out. So which option should you pick?
Live in It
Living in your inherited property is one of the options you could consider, but there are pros and cons to this option. Firstly, the property needs to be somewhere you can see yourself living. It needs to be in a location that works for you and it has to be suitable for you and your family, or anyone else you live with. It might not be exactly what you’re looking for right now, but there is always the option of remodeling or renovating to turn it into a property that you love.
Another thing to consider is whether there is still a mortgage on the property. You need to be able to afford the payments if the mortgage is transferred to you. Although you would also own any equity in the property, you might not be so keen to have the responsibility of a mortgage to pay. However, it’s up to you to make a decision about what would be best for you. If you don’t already own your own home, it could be a great chance to get on the property ladder. Living in an inherited property can often work best if it means you don’t need to move too far from where you are now.
If you don’t want to live in a property that you’ve inherited, you have the option to sell it instead. This is something that you might consider if you have no desire to keep the property, especially if it doesn’t really have any meaning to you. Selling might also be the best choice if you own the property together with someone else, such as a sibling. Selling means that you can split the proceeds of the sale between you, instead of owning a property together, which can be awkward.
If you choose to sell, there are a few ways to go about it, depending on how fast you want to sell and other circumstances. When the property is jointly owned, you might give the other person or people a chance to buy you out. If you just want to sell your house fast, you might contemplate using a cash buyer to purchase the property quickly. But if you’re willing to wait a little longer, you can also list the property to see if you can get a better price. Selling relieves you of the responsibility of caring for the property and can allow you to do something else with the money instead.
Rent It Out
If you don’t want to live in the property but also can’t or don’t want to sell it, another option is to rent it out. Renting does come with some extra responsibilities, but it also has some benefits. You can hold onto a valuable asset while also possibly making a profit or at least covering the expenses. You could rent to long-term tenants or you could consider using the property as a vacation home and rent it for shorter periods.
Before you decide to rent out the property, make sure you know what it entails. You need to be aware of your responsibilities as a landlord if you’re going to have tenants living there. If you’re not sure you’re up to it, you could also consider using a property management service. They can take care of it all for you so that you don’t have to worry about it. Of course, you’ll have to pay for their services, but it can be worth it if you don’t really want to manage the property yourself.
It can be hard to decide what to do with an inherited property, but you have options available to you so that you can make the best decision for your needs.