After you have made the first step on the property ladder and have found it unsuitable, purchasing your second home can be a daunting prospect. Investing in property can be financially rewarding, but it can be difficult to choose the right property while getting rid of your old one. Here are a few considerations to help make the process easier.
Dream Home Key Factors:
Everybody’s dream home varies but the key is to narrow down your specific requirements. Residential properties vary from one-bedroom studios to multi-story and multi-bedroom family houses. If you are moving in with a partner and you are thinking about starting a family soon, then think about the future and choose a place that can accommodate a small family. Other things to consider are the local amenities you would like to be close to and the personal outdoor space included. The size of the kitchen can be a key factor for those who love to cook and have a ton of kitchen appliances to bring with them from their current accommodation.
Reasons To Leave:
Unfortunately, it can be easy to make the mistake of choosing the wrong place the first time around. A property could seem like the perfect home at first but then factors, such as the distance it takes to get to work and the size, can become a huge problem a few months down the line. Some issues may become apparent only after moving in, such as noisy neighbors or unexpected issues with the building.
What To Do Next:
Nobody wants to admit they made an error in judgment but luckily, there are a couple of routes to go down to rectify this particular mistake.
Put It Back On The Market:
If you are really unhappy in your current home, then save yourself the stress and put it back on the market. The best time to do it is when your home has appreciated in value, although this may not be an option for some homeowners. However, if your complaints with your current property are financial, such as the upkeep or the amount of time and money it costs to get to work, then starting fresh may prove to be the cheaper option.
People who wish to re-sell their property quickly may benefit from taking out a bridge loan. Bridge loans are quick to arrange and can give you immediate cash to secure your second property. They allow you to use your old property to fund your new home and the terms are flexible. They are the ideal solution for first-time investors.
Rent It Out:
Leasing the property out can offer you a passive income which could turn into a long-term investment. Many real estate investors set out with a buy-and-hold strategy; you could cash in on your mistake by renting it out to tenants. However, becoming a landlord can be a stressful business and may leave you out of pocket due to the upkeep and maintenance costs. Not to mention, if you do not have the capital to purchase a second home, you may now have to rent a place to live.